Gulf Cooperation Council (GCC) member states’ approval of a unified tourist visa, akin to the Schengen visa, is anticipated to trigger a spike in demand for short-term rentals in the UAE.
The agreement, approved in Oman last week, is expected to create jobs and boost economies, with a particular focus on travel, tourism, and aviation sectors.
Tourist Route and Unified Strategy:
GCC governments plan to study a unified tourist route connecting all six countries, especially for tourists with stays exceeding 30 days.
The UAE’s Emirates Tourism Council will devise a tourism route connecting all seven emirates. With 837 tourist sites in the GCC’s 2030 strategy, the UAE leads with 399 sites and 73 events out of 224 across the Gulf region.
Dubai’s Short-Term Rental Market Poised for Growth:
Industry executives predict that Dubai’s short-term rental market will majorly benefit from the unified GCC tourist visa.
With ample options for tourists and increased demand, executives anticipate significant growth in the short-term rental and holiday home market, akin to the success of the Schengen countries.
Tourist Traffic and Visa Impact:
Dubai saw 12.4 million visitors between January and September 2023, a substantial increase from 2022’s total 7.08 million visitors.
The unified GCC tourist visa is expected to enhance tourist flow, enabling travelers to explore multiple GCC cities easily. This positive impact is forecasted to extend to the short-term rental market.
Increased Listings on Global and Local Platforms:
Driven by rising demand and prices in the short-term rental market, global and local platforms like Airbnb, dubizzle, Blueground, and HomesGetaway are expected to substantially increase new listings. dubizzle has reported a 25% surge in short-term rental listings in the UAE in 2023, with a notable 26% increase, specifically in Dubai.
Competition and Pricing Strategies:
The unified visa is anticipated to intensify competition in the short-term rental market, influencing pricing strategies.
With more tourists arriving in the UAE, property owners and rental platforms may benefit from increased demand and higher occupancy rates, particularly during peak travel seasons.