GCC Source Market: India - Arabian Travel Market Series: Research Paper - Colliers
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Research Paper MENA | Hotels October 2018 Arabian Travel Market Series: GCC Source Market: India
Steady Increase in Indian Visitors to the GCC
INTRODUCTION
Encouraged by its pace-setting 7% GDP growth, India is now the 2013-2018F: Indian Outbound Tourists
fastest growing outbound travel market in the world, second
only to China. Tourist arrivals from India into the GCC have
witnessed constant progression year on year. The United
Nations World Tourism Organization (UNWTO) estimates that
India will account for over 50 million outbound tourists by 2022,
making India a USD 45 billion outbound spend market.
Despite the slowdown due to Indian Rupee fluctuations, the
Indian outbound market has been growing at an average annual India
growth rate of 10-12% over the last seven years. To put things
into perspective, India has been the largest source market for
Dubai over the last 3 years. Overall in 2017, UAE welcomed 2.3
million Indian tourists, accounting for 13% of its annual visitors.
This is 15% greater than that of UAE’s 2nd largest source market,
Kingdom of Saudi Arabia.
Some critical factors behind India’s growing outbound market
include:
• Burgeoning middle class (350 million), with increasing
amount of disposable income
22.50 million Outbound
• By 2025, India will rank as world’s youngest country Indian Tourists in 2018F
demographically with 65% of the total population (worldwide)
categorized as Gen X and Gen Y (Census of India, Ministry of 20 million Outbound
Home Affairs, India, 2018) Indian Tourists in 2015
• Indian tourists are among the world’s highest spenders per (worldwide)
“
visit made abroad. An average Indian traveler spends $1,200
per visit compared with Americans and British travelers who
spend on average $700 and $500 respectively (Forbes, 2018)
Across the GCC region, there has been increased efforts to grow 37% of India’s outbound market
visitors numbers from India which is discussed later in this
paper. travels to the GCC. The popularity of
this region as a destination for
FOCUS ON INDIAN TOURISM TO GCC COUNTRIES business, place of work and leisure
”
Oman has experienced a significant underpins this demand
growth in in Indian visitors during 2013-
2018F. The CAGR growth in Indian tourist
arrivals has been 8.3%
UAE has experienced an increase in CAGR Forecast 2018 – 2022F: Total Indian Inbound Arrivals
growth of Indian visitors from 2015 – (GCC selected countries)
2018F. India is UAE’s largest source
market
KSA has been witnessing a steady flow of
Indian tourist over the last decade. Recent
changes in Umrah Visa’s now allowing Umrah
travelers to visit any other city in the Kingdom
along with other initiatives are expected to 7%
7%
boost tourism 6% 6% 6%
Bahrain has witnessed a stable growth in the
number of Indian visitors between 2013 –
2018F. The average growth has been
persistent at 5.4% CAGR
Kuwait has experienced a negative
-8.5 growth rate of -8.5% in Indian
arrivals over the last 4 years
UAE Oman Bahrain KSA Kuwait
Source: National Statistics, Colliers International 2018 Source: EuroMonitor International, 2018; Colliers International 2018
2 GCC Source Market: India | November 2018 | Hotels | Colliers International
Long-Term Outlook
Steps taken by GCC countries to attract the Indian source
Long-Term Outlook – Indian Outbound Market
market are as follows:
• Indian passport holders with a
UAE green card or valid US visa are
eligible for Visa on Arrival valid 2018 2022
for 14 days (can be extended)
• UAE introduced a free two-day
transit visa Total Indian Tourism 22.5 million 50 million
Departures Total Total
• SCTH announced the launch of their KSA Outbound Outbound
(Worldwide)
tourist visas as a strategic part of National tourists tourists
Transformation Program 2020 and Saudi
Vision 2030. It is hoped to boost overall
current tourism numbers (leisure tourism)
and increase Indian footfall Approx. 9
5.4 Million
Indian Outbound to million
Total Indian
Oman GCC Total Indian
• Indian passport holder with a valid tourists to
tourists to
UK, US, Canada, Australia, Japan or GCC
GCC 2022
Schengen visa are eligible for a 10
days tourist visa at a nominal cost
Outbound Tourist 23 billion 45 billion
Spending Total Total
Bahrain Spending
(USD) Spending
• Indian passport holders are eligible (2022)
for Visit e-Visa in Bahrain, which
eradicates the need to visit the
“
embassy and makes the process a lot
more seamless
Kuwait • Visas to Kuwait are available to Colliers estimates that an extra 10.8m
Indian nationals with a valid
GCC resident card and through room-nights will be created by increased
direct applications to the
demand from Indian tourists to the GCC
”
embassy
Source: SCTH, 2018; Gulf Business, 2018
Air Connectivity
in the next 5 years
• 1,065 weekly India-UAE flights corresponding to 130,000
What hoteliers can do to attract Indian Travelers:
seats per week
To attract Indian travelers to the GCC region and to profit from
• On-going bilateral talks to increase airline frequency with
the largest source market, hoteliers require to focus and account
various countries across the region
for the following factors:
The following airlines have direct flights from the GCC
• Increased Price Sensitivity: While the average Indian
countries to India:
travelers prefer to stay at midscale hotels, they prioritize
their spend on experiencing and exploring the key
attractions in the destination as well as on good quality food
and beverage. Packages curated to these needs will help
hotels attract more Indian travelers
• Large Format Travel: Owing to the family and friends centric
decision making culture, Indian tourists typically travel in
groups. Offering family friendly amenities and facilities to
Indian travelers will attract their attention
• Roadshows and Travel Marts: India as a hospitality market
has over 100,000 branded hotel rooms with almost all major
hotel brands present in the country. Roadshows/aggressive
sales calls and lucratively crafted packages by these hotel
brands are key to attracting this source market
• Focused Marketing: From inducing Indian travel to GCC
standpoint, focused marketing on channels such as Radio
(FM 91.1, 93.5, 94.3 and 95) and Television (channels such as
Aaj Tak, Star Plus) will garner attention
Source: UNWTO, 2018, Business Monitor International, 2018; Colliers International 2018
3 GCC Source Market: India | November 2018 | Hotels | Colliers International69 countries
For further information,
please contact:
Christopher Lund
$2.7 Head of Hotels | MENA Region
billion in Main +971 4 453 7400
annual revenue Mobile +971 55 899 6110
christopher.lund@colliers.com
2.0 James Wrenn
billion square feet Senior Manager | Hotels | MENA Region
under management Main +971 4 453 7400
Mobile +971 55 736 6767
James.wrenn@colliers.com
15,400
professionals Ankur Arora
and staff Consultant | Hotels | MENA Region
Main +971 4 453 7400
Mobile +971 55 789 9797
ankur.arora@colliers.com
Colliers International | MENA Region
Dubai | United Arab Emirates
+971 4 453 7400
About Colliers International
Colliers International is a global leader in commercial real estate services, with over 15,400
professionals operating in 69 countries. Colliers International delivers a full range of services to real
estate users, owners and investors worldwide, including global corporate solutions, brokerage, property
and asset management, hotel investment sales and consulting, valuation, consulting and appraisal
services and insightful research. The latest annual survey by the Lipsey Company ranked Colliers
About Colliers
International International
as the second-most recognized commercial real estate firm in the world.
Colliers International is a global leader in commercial real estate services, with over 15,000
professionals
In operating
MENA Colliers in 68 countries.
International Colliers
has provided International
leading delivers through
advisory services a full range of services
its regional to real
offices since
estate users, owners
1996. Colliers and investors
International worldwide,
currently includingoffices
has five corporate global in
corporate solutions,
the region located brokerage, property
in Dubai, Abu
and asset
Dhabi, management,
Egypt, Riyadh, andhotel investment sales and consulting, valuation, consulting and appraisal
Jeddah.
services and insightful research. The latest annual survey by the Lipsey Company ranked Colliers
International as the second-most recognized commercial real estate firm in the world.
Colliers
In MENA, International,
Colliers2018
International has provided leading advisory services through its regional offices since
1996. Collierscontained
The information International
herein hascurrently hasfrom
been obtained six sources
corporate offices
deemed inWhile
reliable. the region locatedeffort
every reasonable in Dubai,
has beenAbu
madeDhabi,
to
ensure itsRiyadh,
Egypt, accuracy,Jeddah
we cannotand Doha.it. No responsibility is assumed for any inaccuracies. Readers are encouraged to consult their
guarantee
professional advisors prior to acting on any of the material contained in this report.
Colliers International, 2017
colliers.com
The information contained herein has been obtained from sources deemed reliable. While every reasonable effort has been made to
ensure its accuracy, we cannot guarantee it. No responsibility is assumed for any inaccuracies. Readers are encouraged to consult their
professional advisors prior to acting on any of the material contained in this report.
colliers.comYou can also read
