Following the strengthening of the dollar against the euro, industry experts have predicted an increase in the number of travelers from the Gulf to Europe, within the next three to six months.
Basically, an increase in the value of the dollar increases the value of Gulf currencies. This in turn increases the buying power of travelers from the Gulf. Over the last year, the dollar strengthened by about 17 percent against the Euro. As a result, all the Gulf currencies, other than the Kuwaiti dinar, stabilized against the dollar.
According to Manu Mehrotra, the general manager of Al Tayer Travel Agency, thanks to stronger Gulf travelers get a better value for their money and purchase more.
Similarly, holidaymakers from the Gulf countries are expected to stay in Europe for longer periods. In the previous years, visitors from UAE used to spend an average of 14 nights in Europe. However, Kuwait Singh, the managing director of Lama Tours, predicts that visitors from the UAE will stay in Europe for 16 and 18 nights on average.
Regardless of the predicted increase in the number of travelers from the Gulf countries holidaying in Europe, industry experts are of the opinion that their numbers in the UAE will not be significantly affected. The strengthening of the dollar implies that the euro is weakening, and will continue to do so in the months to come. As a result, the UAE is becoming more expensive as compared to the European countries.
However, Singh believes that if the tour operators increase the value for money of their holiday packages, there will not be a significant drop in the number of visitors in the UAE.