NTO Luxury experiences on rise in the UAE

The UAE’s tourism industry is continuing to expand on its premium offering of luxurious experiences, which given their inimitability can support long-term competitive advantage. Travellers from several locations can enjoy tailored tours with opportunities to learn new skills and gain insights into a host culture, for example through culinary tours with hands-on cooking experiences.

Outstanding personal service, high-quality infrastructure, and an increasingly prominent focus on sustainability are central pillars of the luxury tourism industry. Luxury tourism continues to increase in importance within the hospitality industry globally, as a growing number of visitors seek high-end experiences supported through world-class amenities. Luxury tourism facilitates a degree of personalisation that speaks to the needs of the modern-day tourist, hoping for a more unique, and authentic tourist experience. The 2022 valuation of the Global Luxury Travel Market reached US$1.28 trillion, with projections indicating growth to US$2.47 trillion by 2031.

The UAE is experiencing a rise in luxury tourism, with a luxury offering—marbled throughout much of the UAE’s tourism offering—now expanding. The UAE’s tourism industry is continuing to expand on its premium offering of luxurious experiences, which given their inimitability can support long-term competitive advantage.  Investments in high-end accommodation, leisure activities, and fine dining in the region contribute to a luxury package that can be perceived as value for money by visitors entering the market with less-developed, lower-quality offerings. Research shows a focus on developing quality over mere quantity can facilitate more enduring relationships. In the tourism sector this can be particularly prudent.

The luxury travel trend is evolving to meet the changing demands of an emerging millennial market in possession of disposable income enabling them to engage in luxury tourism experiences. Many choose to stay in resorts or opt for luxury cruises offering quality amenities.  Millennials are changing the way luxury travel is perceived. They value experiences more than material possessions. As a result, there has been a rise in unique travel experiences catering to their preferences, such as boutique eco-friendly resorts and
cultural exchanges.

The UAE hosts many offerings such as the Casa Mikoko resort in Umm Al Quwain, where guests can engage in water-based activities, while staying in a luxurious beach lodge. Travellers can enjoy tailored tours with opportunities to learn new skills and gain insights into a host culture.  As the segment continues to expand, it will play a vital role in shaping the industry’s future. In a changing world, the tourism offers a route to widespread adoption of sustainable practices. It demonstrates experiences can suggest that tourists do have a pathway to continue participation in enriching luxury experiences.