The Internet doesn't lie

The worry for Dubai in this downturn is that those considering a holiday to Dubai, will think that it's too expensive a holiday in 2009 and thus put that off for a more meagre holiday to somewhere closer. Indeed, many people who would have onced travelled the globe are not travelling this year due to the impending doom and gloom. There are those that have lost jobs, those who are worried about their jobs and there are businesses that are on the brink due to financin, reduced sales. The picture is similar across the world.

Let's get a piece of data from hitwise:

UK Internet searches for flights experienced a seasonal increase of 58% between the weeks ending 27/12/08 and 03/01/09, but they were down by 42.4% when compared with the equivalent post-Christmas week last year

That's a little bit worrying. That doesn't necessarily mean that there will be reduced travel, but there is a very high probability.

Here's another piece of data:

Change in UK Internet searches for flights to popular destinations between 05/01/08 and 03/01/09: Dubai -27%

Yes, you read that right, Dubai, 27% down. Does that actually mean anythng? Well the pound is at a low at the moment against the dollar and with the dirham tied to the dollar, UK travellers think twice about going to places that are 30-40% more expensive, even if hotel rates are quashed. Expensive places will always be perceived as expensive places. Even if you can stay at a budget cheap hotel in Bur Dubai, Dubai will always be considered high brow.

And do there we have it then. Travellers from the UK are considering Dubai less for a holiday this year. That may not change anything at all, but I suspect that it will. I will guarantee you this, there will be less holiday makers coming from the UK to Dubai this year. Why? Because the Internet doesn't lie.

Searches for flights down 42% on last year

Shoppers paradise? Yeah Right!

Dubai’s core selling point as a top class destination spot has been the tax free shopping and the abundance of well known high street and designer brands. This may no longer be the case as recent reports have highlighted well known goods are being sold for nearly 50% more then in their country of origin. This is shocking news to both expats and locals who are aware of identical items being sold for cheaper whilst shopping away from Dubai.

At a time when shopping in Dubai was cheap compared to back home, so many people are finding they need to shop around for branded items. Another disadvantage is that online shopping in UAE is not available for most stores which makes searching for the best deals harder.

Some analysts say the reason UAE bears the burden of higher priced branded goods is due to the purchasing power of different markets. UAE is viewed as one of the stable countries where growth is amongst one of the strongest in the world.

Retail cost of living in the Gulf