Weak dollar disrupts Gulf travelers' plans

Author: 
SULTAN AL-TAMIMI | ARAB NEWS
Publication Date: 
Sun, 2011-08-28 02:08

This is the season for people in the Gulf to pack their bags and enjoy a favored destination of their choice. However, this summer they have been forced into a rethink.
There has been an unexpected drop in the number of travelers from the Gulf, with experts in the tourism sector attributing the sharp decrease this year to two main reasons.
One, because the currency is pegged to the dollar, this has raised the cost of residents’ travel plans. Second, unstable security situation in many tourist spots in the Middle East.
Experts are advising vacationers to avoid traveling to the eurozone as the current unfavorable exchange rate will raise the travel cost by at least 15 percent.
They are also expecting many to spend their holidays at home, or travel within their country — thus boosting the domestic tourism sector.
The increase in prices for tour packages in the eurozone or the US is largely due to fluctuations in the currency market and the continuing decline of the US dollar to which most Gulf countries’ currencies are pegged.
In addition, there is a mark up in the price of packages by tour operators in anticipation of the expected numbers of tourists from the Gulf.
“Tourists coming from the Gulf had to change their destinations to avoid the high costs of traveling,” Mohammed Yasin, a top official of the Emirates Mall in Abu Dhabi, told Arabic daily Al-Eqtisadiah.
Yasin said price-conscious travelers from the Gulf opted for either domestic destinations or traveled to neighboring Gulf countries to avoid the high costs.
“Travelers who in the past preferred to spend their holidays in nearby Arab countries such as Egypt, Lebanon, Syria, and Morocco, had to change their destinations this year due to political unrest. Now we are observing that nearby Gulf countries are the favored destinations for Gulf tourists,” said Yasin.
In June Dubai International Airport registered more than 4.07 million passengers arriving there — an increase of 10.4 percent from the 3.68 million people who passed through the airport the same period last year.
The airport's numbers also revealed that Saudis led other countries in the number of travelers to Dubai by 127,000 this year.
“Personally I expected Saudis to lead the number of travelers to Dubai. The city is near and the weather similar, plus great events are being held there, which makes for a great overall destination,” said 24-year-old Jeddah resident Noha Hussain.
“I am planning to travel with my family this Eid holiday. However, because of high ticket costs, I am thinking of reasonable destinations where accommodation also does not cost much,” said 46-year-old Abu Abdulrahman a bank employee and father of three. “I would love to have a leisure break with my family during Eid. But it has to suit my pocket too,” he added.
“A trip to Europe sounds appealing. However, a trip there with the whole family might cost a fortune, so we might go somewhere near where the prices are reasonable."

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