Despite the continuous downward pressure on the Chinese economy, the willingness of Chinese tourists to travel during the National Day holiday (October 1-8) seems undiminished. However, this enthusiasm for travel among Chinese people is not evenly distributed. As consumers tighten their budgets, the Middle East, known for its travel convenience, is emerging as a hotspot. In stark contrast, Dubai, traditionally synonymous with wealth and luxury, appears to be losing its allure.
Data shows that countries in the Middle East such as Saudi Arabia, Egypt, Qatar, and the UAE have become some of the fastest-growing overseas travel destinations for Chinese tourists. Bookings for trips to Doha increased by a staggering 441% year-on-year, while Abu Dhabi saw a growth of 229%. This sudden surge in interest in the Middle East reflects Chinese consumers’ redefined perception of the “value” of travel amidst financial constraints.
The Middle Eastern travel market presents two key sets of data that collectively reveal the impact of consumer tightening on different customer segments:
According to statistics from ForwardKeys covering the period from September 27 to October 12, overall flight bookings from China to the Middle East have increased by over 180% compared to pre-pandemic levels in 2019, indicating the region’s emergence as a new hotspot. Particularly, there has been a 133% increase in demand for premium cabin seats such as business and first class among affluent travelers.
However, concurrently, according to China i2i Group CEO Glos, Dubai has experienced an estimated 50% decline in tourist numbers compared to the explosive growth seen in surrounding areas. While there is a marginal 27% increase in bookings, the significant drop in visitor numbers reflects a weakening appeal to the mass market.
This phenomenon of the Middle East being favored overall while Dubai loses its shine is a direct result of consumer segmentation based on cost-effectiveness under financial strain. The wider audience, under cost pressures, opts for more cost-effective alternatives, with only the affluent segment, insensitive to prices, sustaining high-end booking numbers.
The significant decline in tourist numbers in Dubai is primarily due to Chinese consumers’ pursuit of “high value for money,” even in the luxury consumption sector.
CNBC reports that due to domestic economic pressures, Chinese consumers are cutting back on spending. Simultaneously, the weak yen makes luxury goods in nearby Japan more affordable. This external factor directly undermines Dubai’s appeal as a “shopping paradise,” demonstrating consumers’ sensitivity to pricing over brand locations.
Moreover, tourists find Dubai saturated with international chain brands like McDonald’s and KFC, lacking unique Arabian cultural allure. When consumers tighten their wallets, they are reluctant to pay high travel costs for internationally standardized facilities lacking local authenticity.
In contrast, Abu Dhabi’s “more localized” cultural and historical attractions, resembling the UAE more closely, provide a “different experience mix,” appealing to rational affluent customers.
The rise of emerging Middle Eastern destinations like Qatar (Doha) and Saudi Arabia proves that tourists are willing to pay for the “scarcity of experiential value” and “status symbols.”
Middle Eastern countries have eased visa policies and added direct flight routes (such as Etihad Airways opening routes from Hangzhou and Shenzhen), significantly reducing indirect costs and travel time for long-haul trips, enabling visitors to explore destinations within limited time and budgets.
In the era of social media, traveling to non-traditional destinations like the Middle East becomes a symbol of showcasing “adventurous spirit” and “financial capability.” This intangible “social value” makes customer segments willing to invest resources feel that their consumption is worthwhile.
Furthermore, visitors have the opportunity to savor a diverse range of regional cuisines from Iran, Syria, Lebanon, and more. The scarcity of these experiences adds to their appeal and consumer value.
However, despite the increasing interest in the Middle East, overall, neighboring, cost-effective, and visa-free Asian countries (such as Japan, Thailand, Malaysia, South Korea, and Singapore) remain the dominant force for Chinese outbound tourism. This undoubtedly reflects the rational choice of the majority under financial constraints.