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Consumer Spending Rebounds on Increase in Tourist Arrivals

Increased tourist traffic signals an increasing willingness among consumers to spend. The UAE is witnessing an upturn in tourist and hotels guests compared to 2009 when spending dropped as much as 20 per cent in certain peak tourism seasons compared to the same periods in 2008, Lawson said on the sidelines of the unveiling of Citi PremierMiles line of premium credit cards on Tuesday.

Analysts see the recent surge in travel spending as a key sign of recovery in consumer spending within the UAE.

Tourist traffic to Dubai and other destinations has been showing signs of an upturn with most hotels recording above 90 per cent occupancy rate, said Samanata Wood, Middle East director, corporate communications for Hilton Worldwide. Hotels in the UAE are luring holiday-makers from within the region and abroad thanks to a steep decline in room rates, she said.

However, industry watches believe the current buoyancy in hotel occupancy will continue until the end of April.

Citibank’s Citi PremierMiles credit cards, launched in collaboration with MasterCard on board a luxury yacht off Dubai Marina on Tuesday, come with a free return trip to any destination worldwide, 75 per cent off on companion tickets, unlimited lounge access, in addition to many of its exclusive privileges. The new line of cards has been unveiled to coincide with the upcoming summer travel season.

Sanjoy Sen, Citibank’s Consumer Bank Head —Middle East, said the launch was clearly based on a growing demand for travel-related value services in the UAE market, as demonstrated by customer survey results.

“The UAE is one of the most vibrant frequent flyer markets around the globe and remains so even in the current economic environment,” said Sen. “We’ve tested the waters for a new credit card with a competitive reward potential and the most flexible redemption power among frequent travellers. The result of our survey confirmed the need for such a product.”

He said cardholders could earn up to 3 Citi Miles on every dollar spent, billed as the best earn rate in the market. “At this rate, in any given year, they can easily earn a free ticket as far as New York, or any other exciting destination worldwide by spending just $2000 per month.”

Cardholders now have the choice of many airlines to book their flights using their Citi Miles as well as a wide spectrum of travel and leisure service providers where miles can be instantly redeemed, he pointed out.

The new line of cards differentiates itself from the existing co-branded mileage programs in the market by establishing a well-rounded platform for miles redemption with over 300 airlines and hotels worldwide, Sen explained. Customers can accumulate and stores their Citi Miles in a centralised account until they wish to convert them into frequent flyer or loyalty points program of their choice, thus avoiding the inconvenience of having miles scattered across a variety of programs, Sen said.

“We continue to build strategic partnerships with leading airlines, hotels and travel service providers in this region. Our goal is to make the new line of cards the best mileage and travel program in the market,” said Faraaz Ali, Cards Business Head, Citibank UAE. — issacjohn@khaleejtimes.com