UAE market spends grow 10% in first nine months of 2015

Business

UAE market spends grow 10% in first nine months of 2015

Total market invests in the UAE enhanced by 10 % in the first 3 quarters of 2015, as compared to the very same duration in 2014, according to a new report on consumer invests by Network International, the prominent payment options provider in the MENA area.

The report, based on credit and debit card deals in the UAE, discovered that growth in traveler spends for 2015 vs. 2014 turned positive for the very first time in the third quarter of this year, reinforced by an increase in spending by the leading three total spenders-- United States (15 %), Saudi Arabia (29 %) and United Kingdom (17 %).

In regards to nationalities, decreases in total Russian (-57 %) and Chinese spending (-20 %) was stabilized by a 67 % growth in Qatari and 38 % development in Nigerian invests across many sectors.

David Mountain, Chief Commercial Officer, Network International, commented: "Network International's customer spending report supplies a prompt and accurate window into customer spending habits, providing UAE companies helpful guidance while creating their marketing and sell techniques.

"The Q3 data shows a major trend for regional retailers-- domestic and GCC invests, particularly Saudis and Qataris, have actually gotten impact in the UAE markets displacing conventional top spenders such as the Chinese and Russians. Our analysis likewise offers the hospitality market with insight on strengthening weakening RevPAR (Revenue Per Available Room) profits as the F&B sector witnesses strong invests across all nationalities," included Mountain.

Hotels lead development story
The hospitality sector registered strong year on year growth, an 8 % increase in Q3 2015 as compared with Q3 2014. This development, however, was not due to enhance in RevPAR and average per purchase spends in Q3 2015 declined 6 % vs. Q3 2014. Hotels kept to feel the effect of the decline in Russian travelers as spends reduced 48 % in Q3 2015 vs. Q3 2014. However, this was stabilized by a 90 % growth in invests from Qataris and UK and Saudi invests growing at 23 % and 25 % respectively in Q3 2015 vs. Q3 2014.

High-end takes a fall
The luxury sector, consisting of jewellery and costly watches, took a plunge in 2015 due to their substantial reliance on Chinese and Russians, who made use of to account for more than 25 per cent of the overall traveler invest in 2014. A comparison of Q3 2015 vs Q3 2014 invests data reveals that the US and Chinese decreased invests by 23 % and 57 % respectively. Among the top 10 spenders-- British (9 %), Saudis (19 %) and Qataris (74 %) stemmed the tide with a healthy positive growth in Q3 2015 vs. Q3 2014. Overall, the sector is witnessing 7 % average decrease in 2015 vs 2014 and 1 % decline in Q3 2015 vs Q3 2014. With the Chinese economy still disappointing signs of economic recuperation, and with low oil rates and sanctions on Russian economy, development in the sector can be expected to stay sluggish in the near term.

Fashion sees change
A lot has actually been taking place in the clothing/fashion sector The sector turned favorable (4 % growth) for the very first time in Q3 2015. While domestic invests grew moderately by 5 % year on year, many of the overall growth was contributed by Saudis (33 %), Qataris (68 %) and Nigerians (87 %) in Q3 2015. Russians (-74 %) were changed by Saudis as the one of the top traveler spenders. Egyptians and Kazakhstanis are among the other top 10 traveler spenders in this sector. As in the hospitality sector, Qatar as soon as again fortified invests with a 68 % hike in Q3 2015 vs Q3 2014.

Gains in F&B sector.
One of the significant sectors which saw an incredible growth was F&B (30 % (in outright numbers) year-on-year. Growth in this sector was dispersed with almost all nationalities performing well, with the leading five being Saudi Arabia, UK, US, Kuwait and Qatar. 78 % development in Saudis spending in F&B sector have moved them to the leading spender group, followed closely by Qatar (133 % growth in spends) and 30 % growth in domestic spends in Q3 2015 vs Q3 2014. F&B's success has prompted all major hotels to concentrate on this quickly developing sector especially at a time when RevPAR is much lower than past.