A recent report by Euromonitor International reveals that China, India, and the United Kingdom (UK) will be the leading contributors to duty-free sales in the United Arab Emirates (UAE) over the next four years.
The study titled ‘World Market for Duty-Free: Unlocking Value and New Opportunities,’ further indicates that travel spending is expected to rise, fueling growth in inbound duty-free sales.
As a matter of fact, UAE’s inbound duty-free sales have already surpassed pre-pandemic levels, with each arrival spending over $100. It is mainly because of the country’s liberal policies on travel and tourism during the pandemic.
The report attributes this success to the presence of two major carriers, Emirates and Etihad Airways, as well as the recent FIFA World Cup held in neighboring Qatar. In addition, Dubai and Abu Dhabi also emerged as attractive destinations for luxury brands and shopping.
Dubai Duty-Free has reported an increase in sales, reaching AED 6.34 billion ($1.74 billion) in 2022, up by 78% from 2021. This surge in sales is due to the recovery in international travel after coronavirus restrictions were lifted.
Dubai International Airport (DXB), the world’s largest airport in terms of international passengers, saw a massive rise in traffic, exceeding 66 million passengers in 2022.
The Dubai Duty-Free is further expected to grow in sales, as several sporting events are expected to take place in Dubai, leading to an increase in passenger traffic.
India, China, and the UK are also among the largest sources of tourists for UAE. As per the report, UAE is also ranked as the sixth largest market in terms of average spending on duty-free sales per outbound departure.
It suggests that outbound passenger spending is expected to increase significantly over the next four years.