JEDDAH — The retail environment in the Middle East is thriving, led by strong growth in Saudi Arabia and Bahrain. Per capita expenditure on store-based retailing is up nearly $3,000 thanks to high levels of discretionary income. For both resident and visitors, shopping is one of the top leisure activities in this region, a new research from the “World Travel Market Global Trends Report" showed Saturday. Produced in association with Euromonitor International, the report presents an overview of the leading new trends emerging within the industry, focusing on key regions and topics. In the region, a growing number of malls now have hotels directly located inside or connected for easy access. Leading shopping hotel players including Kempinski Mall of the Emirates Hotel; the Address Dubai Mall, which is connected to the largest mall in the region; and Al Faisaliah Hotel in Saudi Arabia. An additional 10 shopping malls will be under construction in the Middle East during the next 10 years. Among them, the Yas Mall on Abu Dhabi's Yas Island will boast a total of seven hotels. High demand from international travellers, expatriates and locals make the region a strong market for luxury brands they cannot find at home. A thriving young population below the age of 30, which makes up some 50-70 percent of the population, will further drive demand. The ongoing slowdown in the European market will force these Middle East malls and shopping hotels to seek customers closer to home in expat residents and regional visitors. To attract and maintain customers, some mall hotels such as the Address in Dubai Mall are offering bespoke shopping services offering multi-mall day trips are opportunities to be explored by hotel operators. In Africa, meanwhile, with more than 200 movies produced each year, Nigeria's “Nollywood" is helping spur tourism to film locations throughout the country. The film industry also is helping to change stereotypes by highlighting culture and hospitality. Inbound tourism is also on the rise, with arrivals expected to record 3 percent compound annual growth rate from 2012 to 2016, driven primarily by inter-regional tourism from expanding African economies. In Asia, luxury car brands entering the hotel sector Luxury car companies are capitalizing on the popularity of upmarket brands by breaking into the hotel sector. Leading the way is Tonino Lamborghini, which launched a boutique hotel in China in June as part of a joint venture with a local developer. The group has huge potential in the hospitality industry, the report found. Tonino plans to open nine more properties in China with the aim of having 40 hotels in Asia. India's largest motorcycle manufacturer, Hero Motors, also is entering the space; the company is working on a hotel project in India with Marriott International's Edition brand. And Aston Martin has extended its brand license to include development globally. Asia's automobile industry is not the first among out-sector luxury brands to dip their toes into hotel waters. Iconic fashion brands such as Armani and Missoni have properties up and running in Europe and the Middle East. Global tourist arrivals are expected to top one billion for the year, a growth of 3.4 percent over 2011, driven by Asia/Pacific and Europe. The report also found that arrivals from Brazil, Russia, India and China will continue to boost tourism while traditional markets like Europe and America remain vulnerable to austerity measures and traveler caution. Growth is forecast to remain steady at approximately 5 percent annually until 2016. Online travel continues to outperform offline travel in terms of value growth. In the United States, Americans looking for a “unique cultural experience" are increasingly traveling to destinations previously off limits, such as Myanmar, Cuba, Libya and North Korea, according to the report. North Korea eased travel restrictions to Americans in 2010. Some red tape surrounding Cuba was cut by the US government during 2011. And this year saw Myanmar and the US restore diplomatic relations that will likely boost American arrivals 71 percent by 2016, according to Euromonitor. Demand from the BRIC countries is increasingly important for Europe's sluggish tourism sector, the report found. — SG
