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MENA Region Leads Global Growth in Luxury Travel, Reveals Mastercard Affluent Travel Report

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MENA Region Leads Global Growth in Luxury Travel, Reveals Mastercard Affluent Travel Report
News

News

MENA Region Leads Global Growth in Luxury Travel, Reveals Mastercard Affluent Travel Report

2024-05-08 01:54 Last Updated At:02:00

DUBAI, United Arab Emirates--(BUSINESS WIRE)--May 7, 2024--

The Middle East and North Africa (MENA) region has emerged as one of the main regions driving growth in affluent travel, recording high spends, while also displaying an appetite for sustainable eco-luxury and meaningful cultural experiences. Mastercard’s latest report, ‘Affluent Travel: A Middle East Perspective’, released during the Arabian Travel Market 2024, unpacks some of the key trends.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20240507531225/en/

The appetite for new experiences in unexplored destinations, micro-trips and ‘bleisure’ will likely drive the growth of the global luxury travel market, which is expected to grow by 7.9% (CAGR) between 2024 and 2030, according to Grand View Research 2. While the world awaits the emergence of the first trillionaires, high-net-worth travelers contribute approximately 36% of the global spend on travel as stated in a Jones Lang LaSalle study 3.

“At Mastercard, we are committed to connecting people to their passion for travel. This report gives a great snapshot of how high-net-worth individuals choose to travel, and it’s wonderful to see sustainability, cultural immersion and purpose as key considerations, along with quality accommodation, seamless technology and loyalty benefits. We will continue to harness the power of partnerships with leading industry players to come up with innovative solutions that unlock access to a whole new world of unparalleled travel experiences,” said Amnah Ajmal, Executive Vice President, Market Development EEMEA, Mastercard.

As per YouGov research, over a third (36%) of luxury travelers say they want to experience different cultures 4. The combination of business and leisure, or ‘bleisure’, is also resulting in more remote-work trips as digital nomads change the face of travel. Affluent travelers are almost twice as likely as the global average to have taken a vacation as an extension to a business trip 4. Furthermore, Marriott Bonvoy research also showed that solo travel is being embraced, with 70% of respondents in the UAE and 69% in Saudi Arabia saying they’ve travelled solo 5.

Seeking out sustainable credentials and authentic eco-luxury

Affluent consumers are keen adopters of the conscious travel trend and place a premium on the authenticity of eco-luxury experiences. These include associating with travel brands that support local communities. Globally, one in 10 consumers have stayed in luxury eco-friendly accommodation in the last three years, compared to five of 10 among 18–34-year-old affluents. According to Euromonitor, a sizeable 38% of luxury seekers are willing to pay between 30% and 50% more for sustainable travel features such as energy-efficient services. A quarter would pay even higher to find less carbon-intensive transport 1.

Meaningful experiences over material things

The YouGov report notes that this discerning segment places more emphasis on experiences than on physical goods. More than half of affluent travelers, compared to 43% of the global total, prioritize meaningful travel experiences over shopping and souvenirs 4. Close to a quarter say that they are willing to pay more for a remote destination experience, customized tours to connect with local culture, and eco-friendly resorts 4.

Personalization, privacy and pampering

Luxury travelers are prioritizing unique personalized experiences over location. However, they also want their money’s worth in the form of exemplary customer service and pampering. Quality luxury accommodation is a high priority, with 27% saying they would pay more for villas and chalets in secluded and private locations and 21% happy to splurge on luxury stays on a private island 4. Younger affluent travelers are more likely to pay more for Michelin-starred or unique gourmet experiences. According to Marriott Bonvoy research, light, air, temperature, and sound in future hospitality spaces guided through digital concierges will recognize and respond to guests in real-time, based on mood, schedules, and health requirements.

High-spending loyalty supporters

Based on average spend per card by origin market, GCC travelers are among the highest spenders. According to a 2023 Mastercard Economics Institute report, Kuwaiti tourists, for instance, spend on average of $3,390 per card in Paris, five times as much as their American counterparts. High-net-worth individuals are also power users of loyalty schemes and membership cards – 34% versus the overall average of 24% 6. Exclusive airport lounges, as well as priority check-in and boarding, are among the most used perks of loyalty membership, highlights the Euromonitor report 1.

As wealth migrates to younger generations, Millennials (aged 30 to 44 years) now comprise the highest percentage of luxury seekers, followed by Gen Z (aged 15 to 29) 1. Within the GCC, however, Gen X (aged 43 to 58 years) is expected to make the highest contribution to travel growth, according to Arabian Travel Market 7. While much of the world is still catching up to pre-pandemic travel levels, MENA is the only region to show airport arrivals at 22% above 2019 numbers. According to the World Tourism Barometer, specific destinations such as Qatar (+90%) and Saudi Arabia (+56%) have contributed to this surge 8.

To read more about the report, please visit here.

Notes to the editor

Mastercard’s ‘Affluent Travel: A Middle East Perspective’ report was written by White Paper Media Consulting. Sources and data include Mastercard Economics Institute, Marriott Bonvoy, YouGov, Adara, Euromonitor.

References

*Source: AETOSWire

Amnah Ajmal speaking at ATM 2024 (Photo: AETOSWire)

Amnah Ajmal speaking at ATM 2024 (Photo: AETOSWire)

Mastercard - Affluent Travel Report 2024 Cover (Graphic: AETOSWire)

Mastercard - Affluent Travel Report 2024 Cover (Graphic: AETOSWire)

KINSHASA, Congo (AP) — Congo's army said it foiled a coup attempt early Sunday and arrested the perpetrators, including several foreigners, following attacks on the presidential palace and the residence of a close ally of Congo's president that left three people dead in the capital, Kinshasa.

At first, local media identified the armed men as Congolese soldiers but then reported they were linked to self-exiled opposition figure Christian Malanga, who later posted a video on Facebook threatening President Felix Tshisekedi.

Malanga was killed at the presidential palace after he resisted arrest by guards, Congolese army spokesperson Brig. Gen. Sylvain Ekenge told The Associated Press.

Tshisekedi was reelected as president in December in a chaotic vote amid calls for a revote from the opposition over what they said was a lack of transparency. The Central African country has witnessed similar trends of disputed elections in the past.

Ekenge said on state television Sunday that the attempted coup d’état was “nipped in the bud by Congolese defense and security forces (and) the situation is under control.” Among the perpetrators were three Americans, including the son of Malanga, Ekenge later told the AP.

This also came amid a crisis gripping Tshisekedi's ruling party over an election for the parliament’s leadership, which was supposed to be held Saturday but was postponed.

Clashes were reported Sunday between men in military uniform and guards of Vital Kamerhe, a federal legislator and a candidate for speaker of the National Assembly of Congo, at his residence in Kinshasa, about 2 kilometers (1.2 miles) from the presidential palace and where some embassies are also located.

Kamerhe’s guards stopped the armed men, Michel Moto Muhima, the politician's spokesperson said on the X social media platform, adding that two police officers and one of the attackers were killed in the shootout that started around 4:30 a.m.

Footage, seemingly from the area, showed military trucks and heavily armed men parading deserted streets in the neighborhood as the army said the situation has been brought under control.

Meanwhile, the self-exiled Malanga appeared in the live-streamed video at the presidential palace surrounded by several people in military uniform and said: “Felix, you’re out. We are coming for you.”

On his website, the opposition leader's group — the United Congolese Party (UCP) — is described as “a grassroots platform that unifies the Congolese Diaspora around the world opposing the current Congolese dictatorship.”

Tshisekedi hasn't so far addressed the public about Sunday's events.

On Friday, he met with parliamentarians and leaders of the Sacred Union of the Nation ruling coalition in an attempt to resolve the crisis seizing his party, which dominates the national assembly. He said he would not “hesitate to dissolve the National Assembly and send everyone to new elections if these bad practices persist.”

The United States Embassy in Congo issued a security alert Sunday, urging caution after "reports of gunfire.”

Asadu reported from Abuja, Nigeria. Associated Press writers Ruth Alonga in Goma, Congo, and Sam Mednick in Tel Aviv contributed.

Congolese security forces secure the streets of Kinshasa, Democratic Republic of Congo, on Sunday May 19, 2024, after Congo's army said it has "foiled a coup" and arrested the perpetrators, including several foreigners, following a shootout between armed men in military uniform and guards of a close ally of Congo's president that left three people dead in the capital, Kinshasa. (AP Photo/Samy Ntumba Shambuyi)

Congolese security forces secure the streets of Kinshasa, Democratic Republic of Congo, on Sunday May 19, 2024, after Congo's army said it has "foiled a coup" and arrested the perpetrators, including several foreigners, following a shootout between armed men in military uniform and guards of a close ally of Congo's president that left three people dead in the capital, Kinshasa. (AP Photo/Samy Ntumba Shambuyi)

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