Madiha Yaqoob
As per the study by Euromonitor International, India, China, and the UK will be the main three countries for duty-free sales in the UAE over the course of the following four years as travel spending is expected to increase significantly.
Due to the recovery of air travel, duty-free sales in the UAE have surpassed pre-pandemic levels, with sales of over $100 per arrival. The UAE’s open approach to travel and tourism during the pandemic, along with the two main hubs of Emirates’ Dubai and Etihad’s Abu Dhabi, and the recent Football World Cup held in neighboring Qatar, have all contributed to this growth.
The international duty-free market was severely affected during the pandemic, losing tourism demand as borders were shut and restrictions were put in place. The deficiency of high-spending Chinese guests, a basic wellspring of the travel industry and duty-free sales, was especially felt.
However, with the recovery of international travel, passenger spending has improved. Dubai is duty-Free detailed yearly sales of $1.74 billion out of 2022, addressing a 78 percent increment over the previous year. In addition, Dubai International, the world’s largest airport in terms of international passengers, saw passenger traffic more than double to over 66 million in 2022.
The study also projected that outbound passenger spend will substantially increase over the next four years, with the UAE being ranked the sixth largest market in terms of average spending on duty-free sales per outbound departure. With a few sporting events expected to be facilitated in the country, Dubai Duty-Free is set to benefit further from the related convergence of travelers.
