Reflections and Predictions for UAE’s Leisure, Entertainment, and Tourism Industry

For the past three years, “recovery” has been actively driving the leisure, entertainment, and tourism industry. But as we enter the second half of 2023, and appetite for travel grows stronger than ever, I believe it’s time we move beyond notions of just a return to normal, and actively harness new opportunities for growth.

Reflecting on the first six months of the year, we see tremendous opportunities for positive transformation and development. The Department of Culture and Tourism – Abu Dhabi (DCT Abu Dhabi) announced welcoming 18 million visitors in 2022 to the Emirate, marking a 13% year-on-year increase in international travel[1]. The Department’s plans to amplify tourism volumes to 24 million visitors by the end of this year4?consequently aims to increase tourism’s contribution to the national GDP to 12% by 2030[2].

Within the regional context, the International Association of Amusement Parks and Attractions (IAAPA) recognised the UAE as the fastest-growing amusement park market within MENA, noting that consumer spending could reach $609 million by 2023[3]and grow to $474 million by 2024[4]. The country also emerged as one of the top three most popular destinations for Middle East travellers in Mastercard Economics Institute’s Travel Industry Trends 2023 report[5].

As national efforts to diversify and grow the UAE economy continue, Miral continues to be a key contributor to this dynamic growth.

We not only design, create, develop, operate, and manage immersive destinations and experiences that attract visitors from around the world but central to our ambition is a commitment to transforming the leisure and entertainment experience in Abu Dhabi and beyond. One of the ways that we ensure we consistently deliver success is by reviewing our progress, actively listening to our guests, and ensuring that we stay abreast of the latest trends.??

So, what trends will help guide our growth, strengthen our performance, and deliver experiences that customers want?

The first is?sustainability. Booking.com reveals that in the UAE, an astounding 90% want to travel more sustainably over the next 12 months[6]. This sentiment resonates strongly with us at Miral, where environmental considerations are not only a moral duty for us, but a strategic advantage. It is how we create value for our customers, partners, and society. In line with Abu Dhabi and the UAE’s visionary commitment to explore innovative solutions that help achieve national clean-energy and net-zero objectives, we carefully consider the impact of our destinations and experiences to ensure we balance growth with a sustainable future.

A prime example is the recently opened SeaWorld Yas Island, Abu Dhabi. In line with the Year of Sustainability, the next-generation Marine Life Theme Park embeds Sheikh Zayed’s legacy and profound respect for nature across all operations, as well as promoting environmental awareness, protecting marine life, and advancing marine science. We’re further building on this ambition?at Yas SeaWorld Research & Rescue, the region’s largest dedicated marine research, rescue, rehabilitation and return center located adjacent to SeaWorld Abu Dhabi, through a partnership with?the Environment Agency – Abu Dhabi (EAD)?to collectively shape marine conservation, research initiatives, and rescue efforts.

Another significant milestone in the Park’s sustainability strategy is a reduced carbon footprint, made possible through a rooftop solar photovoltaic (PV) system that is being developed in partnership with Emerge, a joint venture of Masdar and French multinational utility company EDF. A similar, 7-megawatt peak (MWp) rooftop solar PV project, which is now operational, at Warner Bros. World Abu Dhabi produces 40% of the theme park’s annual energy demand via an estimated 16,000 solar modules across its roof area of 36,000sqm.

Secondly,?hyper-personalisation and digitalisation?is driving bespoke and enriching customer experiences. This approach is particularly integral at Miral, where we use a combination of first-party data, artificial Intelligence (AI), machine-learning, and analytics to power awe-inspiring experiences for our guests, and deepen their connection with our destinations. Our Decision Analytics Strategy, the “Noor Initiative”, guides our investments in predictive data analytics and integrates innovation throughout our operations. We’re also spearheading digital transformation through FacePass, a facial recognition technology that allows visitors to seamlessly enter and make contactless payments within Yas Theme Parks, and our partnership with Microsoft for a customer-facing generative AI that leverages ChatGPT to provide personalised guidance and information to visitors. 1,700 chat operations were successfully conducted within its first week of launch, reflecting the success of augmenting chatbot capabilities for customer services for the UAE and the wider tourism and entertainment sector.

The third trend we see shaping this year’s travels is a continued preference for?experiences over things. Booking.com confirms 61% of travellers want their hearts racing with a theme park trip in 2023[7], while Mastercard Economics Institute’s Travel Industry Trends 2023 report outlines global spending on experiences was up 65% as of March5. What better place to get that adrenaline rush than at Miral’s world-class, climate-controlled, indoor theme parks that offer over 80 rides and experiences at a 98% uptime and an average waiting time of 20 minutes per ride. As an entity at the forefront of the fastest-growing theme park market in the world, we have?marked unprecedented growth in the first six months of the year. The recent Eid Al Adha weekend saw a remarkable increase of over 100% in domestic and international visitation to Yas Theme Parks as compared to the previous year, with one-third of all guests choosing to explore the captivating wonders of SeaWorld Abu Dhabi. Taking a closer look at the GCC market, regional visitation rose by an astounding 200% against the previous year.

Demand for?immersive, cultural, and art experiences?is the fourth trend on our list. Booking.com notes that 78% of UAE travellers are seeking authentic experiences that are representative of the local culture10?and DCT Abu Dhabi cites culture as the primary reason for travel by 47% of its international tourists in 2022. The Department expects approximately 4 million visitors at its cultural sites this year – more than one million additional visitors compared with the previous year[8]. In line with this growing appetite, Miral has partnered with DCT Abu Dhabi to develop two new cultural experiences on Saadiyat Island. The Natural History Museum Abu Dhabi is anticipated to be the largest of its kind in the region, allowing visitors to travel on a 14-billion-year journey from the earliest origins of our universe to the Earth’s future. Meanwhile, teamLab Phenomena Abu Dhabi will be the world’s new home of ‘Infinite Curiosity’ and provide an immersive, inspirational space where art and technology intersect.?

A?renewed focus on spending quality time with friends and family?is another notable trend. A recent Travel Trend Report states that 49% are planning annual trips with family or friends. The leisure traveller segment is at the heart of how Miral is reimagining and evolving an integrated visitor experience, creating unforgettable memories for guests travelling as a group or visiting friends and family in Abu Dhabi. We marked significant milestones in this arena in the past six months, starting with the appointment of?Hollywood sensation Jason Momoa as Yas Island’s new Chief Island Officer. Showcasing the Island’s best-in-class experiences, the campaign has already witnessed engagement rates surpass 150% compared to the previous campaign featuring Kevin Hart. We also unveiled an action-packed calendar of events for the remainder of 2023, including globally renowned productions like Hamilton and the Lion King And most recently, we collaborated with Kuwaiti band ‘Miami’ for an all-new, groovy, summer campaign?that takes viewers across Yas Island’s world-class leisure and entertainment attractions.

The final trend we’re seeing is?business travel?in the region recovering faster than anywhere else in the world.?According to the Business Travel Index Outlook from Global Business Travel Association (GBTA)[9], the sector in Middle East and Africa reached 86% of 2019 levels in 2022, surpassing the Americas, Asia Pacific, and Europe. In line with the Abu Dhabi Economic Vision 2030 that identifies business tourism as a major contributor towards a diversified economy, the Meetings, Incentives, Conferences & Exhibitions (MICE) segment remains a key focus for Miral. To this end, we have partnered with the Abu Dhabi Convention & Exhibition Bureau (ADCEB) to attract larger MICE groups to the Emirate, resulting in the creation of the Abu Dhabi Convention & Exhibition Bureau and Miral Joint Business Event Fund. This enables us to further showcase Yas Island’s unique and memorable experiences for business travellers, such as hosting immersive meetings within our award-winning theme parks. This “Business Meets Leisure” approach combines the best of both worlds, with everything in one place – from world-class theme parks, attractions, diverse range of hotels, mall, and golf to venues for all kinds of business events from large-scale conferences, corporate gala dinners, formal team buildings, and award show to unconventional themed events.

This is only a snapshot of where the industry currently stands. But while we can’t predict where we’re headed for the remainder of the year, these trends indeed inspire us to work even harder towards a reimagined future for guests. Looking ahead, I feel confident that Miral will continue to strengthen Abu Dhabi’s position as a leading international tourist hub, while building memorable experiences that make our guests want to visit us time and time again. And in doing so, our relentless pursuit of the perfectly tailored guest experience will never end.

[1]?https://dct.gov.ae/en/media.centre/press.releases/abu.dhabi.targets.24.million.visitors.by.2023.aspx

[2]?https://www.thenationalnews.com/business/travel-and-tourism/2023/06/22/abu-dhabi-aims-to-boost-tourisms-contribution-to-gdp-to-12-by-2030-official-says/

[3]?https://www.zawya.com/en/business/leisure-theme-park-spending-in-middle-east-and-africa-likely-to-reach-609mln-in-2023-evscw3ha

[4]?https://www.agbi.com/analysis/middle-east-on-a-roll-as-fastest-growing-theme-park-market/

[5]?https://www.mastercard.com/news/eemea/en/newsroom/press-releases/press-releases/en/2023/june/mastercard-economics-institute-releases-travel-industry-trends-2023/

[6]?https://www.thenationalnews.com/travel/2023/05/01/uae-travellers-want-sustainable-trips-but-cost-is-a-barrier-survey-finds/

[7]?https://www.booking.com/articles/travelpredictions2023.html

[8]?https://www.mediaoffice.abudhabi/en/tourism/department-of-culture-and-tourism-abu-dhabi-continues-sustainable-growth-to-reach-24-million-visitors-target-for-2023/

[9]?https://www.arabianbusiness.com/industries/travel-hospitality/middle-east-leads-charge-in-return-to-1-4tn-business-travel-market