ATM preview: The case for experiential tourism

As technology and low-cost flights make our world ever-smaller, travel is no longer just about discovering far-flung, exotic, or luxurious destinations. It’s also about how we interact with our environment, and how travel to different places affects us, and changes us on an emotional or intellectual level. Say hello to experiential tourism, the newest movement shaping the travel market.

Experiential tourism involves going beyond the usual holiday experiences in a region, to find new ways of seeing the destination, and new things to do there. It’s about learning and growing from travel in a way that can’t be done through the classic “brochure holiday”. The modern tourist wants to walk where the locals walk; to savour local flavours, to learn new skills, to undertake new challenges, all in a new environment. They are looking for a more emotional connection with the people and they visit. And what tourists want, the industry must provide to succeed long-term.

“What we are seeing more and more recently is a quest to secure bragging rights through uncovering or experiencing something truly new, rare or exotic,” says Shangri-La vice president of sales & marketing, EMEA Rob Weeden. “Sharing these fabulous experiences with family, peers, or your tribe on social media, inspires others to also have their own adventures. Just look at the Instagram effect,” he adds.

The Arabian Travel Market — focusing on experiential tourism

Travel and tourism is hugely important to the MENA region. In 2015, travel and tourism accounted for 8.7% of the UAE’s total GDP; a figure projected to rise to 11.2% of GDP in 2026. Oman’s tourist industry is growing apace, with investment in the sector set to reach US$1.17 billion by 2026. In Bahrain, the tourism industry is growing rapidly and is on track to reach $1 billion by 2020. Key to this growth will be experiential tourism, set to be one of the major drivers of tourism in the region this year and beyond.

The Arabian Travel Market is a pivotal event in the tourism industry in the Middle East and North Africa, so its preoccupations reflect the industry as a whole. This year’s edition, which takes place at the Dubai World Trade Centre from April 24-27, will highlight experiential tourism as a key growth driver of the region’s tourism market.

“Experiential travel takes visitors away from the traditional beach and sight-seeing holidays, to immerse them in culture and custom, Arabic tradition, or thrill-seeking activities, such as desert safaris,” says Arabian Travel Market senior exhibition director Simon Press. “This behavioural shift among travellers allows ATM 2017 to highlight the unique nuances of the regional industry to present data, and insight, on areas that will become a major focus over the coming years.”

From backpackers to billionaires

Experiential tourism has evolved with the modern tourist. Influenced by easier connectivity and social media, people now seek travel that offers more of an attachment to the destination, whether that is with history, people, culture or adventure.

“Consumer demand for sure is the driving force,” says Weeden. “People still want to flop and drop on a spectacular beach with turquoise water lapping at their feet, but they also want to juxtapose that experience with adventures of their own — particularly the time poor. The quest for unique is the new normal.”

Frying Pan Adventures is an example of a small company that provides experiential tourism in the MENA region. The company designs walking tours of Dubai where visitors can experience the city at street level. “We curate experiences where people can appreciate Dubai in a way that feels sincere and without the usual ‘gloss’ that makes a city look outwardly perfect for visitors,” says Arva Ahmed, the founder of Frying Pan Adventures. “Our primary lens is food — we design trails that involve sampling foods and interacting with vendors in down-to-earth, everyday neighbourhoods that tourists would typically not visit during their stay. We use these ‘food tours’ to not just eat, but to share stories of local and regional culture, history, and personal experiences from our time as residents living in Dubai.”

Traditionally this type of experience was the goal of backpackers and adventure travellers, but now its influence pervades the luxury market too. Even travellers with deeper pockets are looking for authentic and personalised experiences away from the mainstream.

Filip Boyen, CEO of Small Luxury Hotels of the World, has been monitoring this trend. “There has been a shift particularly in the luxury market, whereby people are choosing to spend their money on experiences, rather than possessions,” he notes. According to Boyen, this shift in the luxury market has particular implications for the MENA region, hitherto synonymous with “luxury” in the sense of opulence, expense and awe. “Within the hotel industry in this region in particular, there has always been a trend towards opulence and ‘bigger is better’ with hotels,” he says, “but there has recently been a paradigm shift to hotels offering a more personalised and local experience.”

Thrills, chills and culture

The average tourist’s expanding set of preferences is being met by a corresponding expansion of experiences tailored for the thrill seeker as well as the culture vulture.

Millions of visitors are expected to visit Dubai’s new theme park offerings, IMG Worlds of Adventure (4.5 million projected) and Dubai Parks and Resorts (6.7 million projected), in their first year of operation. The ethos of Dubai Parks and Resorts fits perfectly with the trend towards experiential tourism.

“Our slogan is ‘Experience Amazing’ and that is what we promise to deliver for every single guest,” says Vinit Shah, chief business development and strategy officer for DXB Entertainments, the company responsible for Dubai Parks and Resorts. “The whole essence of us creating a destination of this scale and magnitude was to provide a platform for residents and tourists to create lasting memories with their significant others, be it friends, relatives or children.”

The UAE was a natural fit for the establishment of this type of attraction, according to Shah. “We selected our prime location within easy reach of both Dubai and Abu Dhabi, which is a huge draw for families looking for a theme park break,” he says.

“Dubai, with its over 100,000 hotel rooms, with the global connectivity via the airport and Emirates Airline, the ease of access and the semblance of safety, is the ideal place where a family would want to vacation. We are perfectly placed to take advantage of the rising tourist numbers to the UAE as well.”

The growth in theme park attractions isn’t limited to Dubai. The billion-dollar Warner Bros theme park is due to open on Abu Dhabi’s Yas Island in 2018, while the $120 million Majarat Oman theme park will open later this year, expanding the options for family holidays in a country more generally known for its historical and cultural experiences.

A symbiotic relationship

Theme parks, far from taking business away from hotels, in fact are a boost to hotel business, as they increase average spend and length of stay. Hotels in the MENA region are adapting their product to accommodate experience-based tourism, according to Shangri-La’s Weeden. “Due to the growing demand from today’s travellers for more engaging, authentic travel options,” he observes, “the industry has shifted its focus into creating products that are more exploratory, more bespoke in delivery, and more in harmony with local cultures, to offer experiences that resonate.”

It’s a mutually beneficial relationship. If tourists are attracted to a destination by a particular experience, the more traditional attractions and facilities will also benefit from tourist spending. The whole package encourages longer, higher-spending visits.

“There’s now widespread acceptance among the hotel industry that guests are more interested in exploring outside the hotel’s four walls than in the past, so it’s important that hotel staff provides connectivity to local experiences,” remarks Boyen of SLH. “Hotels can add value by building this connectivity — connecting guests with locals and their locale.“

Theme parks are not the only driver of the new tourism in the MENA region. “Culture is also a significant driver in the GCC,” says Press of ATM, “with last year’s opening of Dubai Opera, the imminent opening of Saadiyat Island’s Cultural District and a number of projects in Qatar, where performance art and museums are particularly popular. Sporting events will draw significant numbers over the coming years with a number of global competitions, including the 2022 FIFA World Cup.”

Niche and boutique

Many hotels are adapting towards niche boutique offerings, or individualised experiences for guests. Visitors are seeking out properties that have a unique story, that capture the authentic essence of a destination, and are off the beaten path. A good example of this in the MENA region is the Dar Ahlam hotel in Morocco, part of SLH, where the ethos is based around creating individualised experiences for guests: special moments and imaginative events rooted in heritage, culture or gastronomy.

Technology can help too. The Shangri-La sister brand Hotel Jen recently launched an interactive “Night Light” map feature which goes live each evening just after sunset across all Hotel Jen websites, providing insider recommendations on the latest and most interesting after-dark events and experiences in each city where Hotel Jen is present. Activities range from salsa dance and yoga lessons in Singapore, to night-time walks up Hong Kong’s Victoria Peak, to a sunrise workout with a certified fitness trainer in Brisbane. The concept was developed to respond to guests’ desire to uncover alternative, authentic experiences and get off the tourism trail. These visitors want to experience a city ‘like the locals do’. They also want to be guided by people who will give them a balanced glimpse into the “real life” of the destination.

Ahmed has extensive experience of this type of traveller in her work organising Frying Pan tours in Dubai. “They are intellectually curious and seek to dive deep into the history, culture and politics of a place,” she says. “It will be necessary to move past the realm of malls and touristy activities to giving them more personalised experiences that are grounded in the local, authentic context.”

An experiential future

The future of experiential tourism in the region looks bright. “The Middle East has an abundance of authentic local experiences to offer,” says Press, “from overnight stays in a stone house in remote Omani villages to Old Dubai walking tours that search out the best street food.”

He continues: “We want to create awareness of how to convert concepts into viable commercial realities, to broaden the appeal of Middle East destinations, increase their visitor numbers and revenues, which can support sustainable economic development.”

A recent report by PricewaterhouseCoopers suggested that the leisure and entertainment market potential in the UAE could double to 45 million visitors by 2021, with 18 million theme park visits, due to the region’s investment in infrastructure, hotel rooms and leisure destinations. Dubai Parks and Resorts has already broken ground on its fourth theme park, Six Flags Dubai, which will be the first Six Flags theme park in the region.

“There are three billion people that live within a four-hour flight of the UAE, and there is a significant gap in this market for a world-class family leisure and entertainment destination,” says Dubai Parks and Resort’s Shah. “Experiences matter in every commercial market. People remember the experience they have with a product more than they remember the product itself. Experiential tourism creates a much deeper, longer-lasting impression, which then builds attachment and brand loyalty. By investing in the experiences our visitors receive, the region in turn will reap the economic benefits of an increased number of returning visitors and new tourists coming into the market.”

The modern visitor to the MENA is looking to make authentic connections, whether intellectual, physical, emotional or spiritual. The tourist industry here offers just such an opportunity, connecting people with the people, places and culture at the heart of the Middle East.

“We recognise that sense of place matters to our guests,” says Boyen, “whether driven by a sense of pride, authenticity, convenience or eco concerns, and that they want to embrace the locale and immerse themselves in the culture of a place. This to them is ‘real’ luxury.”