Page 39 - RLI June 2019

ourism into the GCC has grown considerably in Studies from UNWTO cite retail as one of the preferred
SPECIAL FEATURE: TRAvEL RETAIL recent years as the region continues to rapidly activities for international travellers particularly in metropolitan
develop its retail, hospitality, entertainment, F&B cities, which in the region would include Dubai, Abu Dhabi,
Tand cultural offerings. Experts note this growth Riyadh and Jeddah. International tourists in the metropolitan
will only continue as more human and capital resources are city of New York named shopping as their preferred activity
invested, with the implications for retailers remaining vast.
with almost 90 per cent of visitors ranking shopping ahead of
WhAT DOES ThE of which a substantial 20 per cent will be travelling. Numbers sightseeing and cultural expeditions.
By 2030, there will be an extra billion people in the world,
Whilst the consumption of goods is important for many
travellers, the retail experience is playing an increasingly
of international tourist arrivals will increase by 43 million a
year on average, reaching 1.8 billion tourist arrivals across the
significant role when it comes to selecting a retail destination.
FUTURE hOLD? world by 2030 — a growth pattern already seen in the GCC. for inbound travellers focussed on retail. Increasingly, there is a
The emphasis on personalisation is particularly important
Shifts in global travel and mobility provide luxury retailers
with ample opportunity, with travel and tourism contributing
growing demand for them to be treated as individuals, and on
$8.8 trillion to the global economy and supporting 319
million jobs globally. This number is only set to grow with bespoke experiences that can be created in the destinations
they choose to travel to. Whilst both regional travellers and
travel and tourism in the future forecasted to be responsible visitors from wider afield are still highly price aware, more and
for one in every five new jobs and operating as the second- more, visitors are after an experience when they travel.
fastest growing market sector after the chemical industry. Yet even before the traveller reaches their destination,
Various studies have shown that travellers tend to possess there is duty free. Dubai, with the busiest airport in the world
higher levels of disposable income and are willing to spend for international traffic (surpassing 89.1 million international
it on goods and services that make their travel experiences passengers in 2018), makes a powerful case study for just
more convenient and memorable. Yet these travellers also how much visitors arriving or departing wish to buy. Globally,
want experiences that are culturally connected, unique, around 19 per cent of departing passengers make a purchase,
authentic, bespoke and possess a regionally relevant and compared to 40 per cent departing from Dubai.
personalised approach – the new definition of luxury. A growing number of people are travelling and increasingly
For luxury retailers to grasp the implications of the growth spending as they travel. Simultaneously, the GCC is creating a
of the luxury tourism industry, it is important first and more inviting environment for a broad spectrum of travellers.
foremost to understand today’s luxury traveler. This combination of increased footfall plus the expenditure of
disposable income has the potential to result in strong economic
The Traveller requires a personal Touch growth regionally.
For increasing groups of the global population, basic This growth spans across “Globally, the travel tourism market
nutritional needs are well catered for. Amadeus, the global numerous categories: luxury is poised for continued Growth with
travel technology company, notes this has created a desire hospitality saw a 5 per cent sales
for more varied cuisine, more elegant fashions, richer growth from 2017; gourmet food new niche formations on the rise. as
expectations for one’s children and, naturally, more travel. and fine dining was 6 per cent; the luxury industry expands, it will
When it comes to travel, there is a growing desire for more and luxury cruises were up 7 per
profound experiences with high interaction with local cent. The luxury retail market is also continue to evolve.”
people and places. also experiencing unprecedented
levels of spend. Last year, personal luxury goods reached a
The Traveller is digiTal record high of $290bn. Taken together, these figures indicate that
Today’s traveller is increasingly connected across all age consumers are willing to spend, particularly on luxury items and
demographics. This is particularly true of Gen X and Y, the unique experiences.
first generations who have grown up with the development Globally, the travel tourism market is poised for continued
of information services and complementing hardware growth with new niche formations on the rise. As the luxury
technological developments. According to Think with industry expands, it will also continue to evolve. Luxury travellers
Google, over 85 per cent of MENA travellers carry their today are increasingly digital, with unique experiences often
phones when travelling for business and 85 per cent do contributing more to ‘luxury’ than price points alone. Individuals
when travelling for leisure. The functionality of this usage is are requesting more personalised experiences where they are
spread across social media, seeking places of interest and treated with one-to-one attention creating more memorable
engaging with traditional communication methods. Accessing journeys thereby more value.
information online is still a significant influencer of traditional With this fast-moving market and evolving consumer, retailers
bricks and mortar retail, with more than 40 per cent of should be agile and adapt their offer by focusing on something
travellers researching online before purchasing offline. unique and preparing visitors for a delightful experience.

Travel Retail is a sector that has been on the rise for a number of years, it shows no
signs of slowing down and in fact numbers are increasing rather than decreasing. Here

Patrick Chalhoub, CEO of Chalhoub Group takes a look at the luxury travel and retail
sector in and outside of the GCC to highlight the current trends that are attracting
more people to this growing segment.

38 RETAIL & LEISURE INTERNATIONAL JUNE 2019