India, China and the UK will dominate UAE Duty Free sales over the next four years as travel spending is expected to witness a substantial increase, according to Euromonitor International.
Its latest report titled ‘World Market for Duty-Free: Unlocking Value and New Opportunities’ said: “The UAE has benefited from its relatively open approach to travel and tourism during the pandemic, plus its two main hubs of Emirates’ Dubai and Etihad’s Abu Dhabi, as well as the added uplift from the recent Football World Cup held in neighbouring Qatar.
“Dubai and Abu Dhabi are magnets for luxury brands and shopping.”
The recent recovery in international travel has markedly increased passenger spending. Dubai Duty Free recently posted annual sales of Dh6.34 billion ($1.74 billion) in 2022, representing a 78 per cent increase over the previous year, while Dubai International saw passenger traffic more than double, reaching more than 66 million last year.
“With several sporting events expected to be hosted in the country, Dubai Duty Free is set to benefit further from the associated influx of passengers,” said the report.
The international duty-free market faced severe headwinds during the lockdown. The most profound blow was the loss of high-spending Chinese visitors, a critical source of both tourism and duty-free sales.
According to Euromonitor International, the UAE has also been ranked the sixth largest market for spending on duty-free sales per outbound departure.
The report forecasts that outbound passenger spend will rise dramatically over the next four years.
