Overall
tourist spending in the UAE rose by five per cent in the first quarter of the
year compared to the same period in 2014, according to a new study by Network
International, the leading payment solutions provider in the MENA region.
The
report, based on credit or debit card transactions by country in the first
quarter of 2015, found that Americans accounted for the largest portion of
total spending in the quarter with 21% and tourists from Saudi Arabia came next
(12%), followed by UK (9%), China (4%) and Kuwait (3.4%).
The
Russian Rouble crisis has had a major impact on spending by Russian tourists
which dropped by 52% in Q1, taking the country out of the top five spenders for
the first time in recent history.
Despite
coming in the top five, Chinese spend is down by 7% on the same period last
year. These drops were offset by significant growth in spending from the USA up
9%, KSA up 25% and Canada up 53% since last year.
Given
distance travelled, Americans, Canadians and Australians spend the most of any
nationality on airfare. However, once they arrive they spend the lowest average
amounts on hotels and meals.
The
Chinese spend twice as much (average transaction value of AED 13,000) on
watches and jewellery as the next tier down, comprising the Russians, Americans
and Swiss. Anecdotally, recent tightening of anti-corruption legislation has
been impacting Chinese Average Transaction Value (ATV) as they are less likely
to buy multiple watches in a single transaction.
"Network
International is the leading merchant acquirer in the UAE and processes well
over half of all merchant transactions in this market. Accordingly, we are able
to see trends and patterns in spending which are indicative of the overall
market. This provides valuable data for not only merchants and businesses but
also for the Government in assessing the continuing appeal of the UAE to
international visitors," said David Mountain, Chief Commercial Officer,
Network International.
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