The UAE is fast emerging as a globally leading centre for ‘virtual tourism’, fuelled by the rising use of AI (Artificial Intelligence) and other new-gen technologies for creating hyper-personalised experiences of the country’s iconic landmarks for travellers, expected to corner a major chunk of the projected $3.26 billion global market for the metaverse-enabled sector by 2025.
The surging demand in the sector is anticipated to see an influx of new players, both international and homegrown, eager to cash in on the thriving opportunities in the segment, leading to a dynamic shift in the ‘virtual tourism’ landscape in the country.
The sector is currently dominated by players such as Matterport, Dubai360, and 360 Emirates, offering attractive packages such as ‘Louvre Virtual Tour in Abu Dhabi’ and ‘Dubai360’ interactive experience where users can virtually visit a variety of Dubai’s attractions such as the Palm Jumeirah and the Burj Al Arab, sitting in any corner of the world.
Virtual tourism uses the metaverse and technologies such as VR (Virtual Reality), AR (Augmented Reality), and mixed reality to provide digital travel experiences, allowing users to explore destinations, landmarks, and cultural sites without physically travelling.
The sector’s offerings, which can act as inspiration and to plan trips, or as a source of leisure and entertainment, is projected to significantly help the UAE in its ambitious drive to mop up a staggering approx $125 billion (AED450 billion) revenue from the tourism sector by 2031.
“The global virtual tourism market is expected to reach $6.5 billion by 2030 (according to Allied Market Research), and it’s no surprise that the UAE will see a large chunk of that revenue, as it is a leader in implementing virtual experiences for tourism,” Samuel Huber, CEO of LandVault, a leading virtual experience developer, with major operations in Dubai and the UAE, told Arabian Business.
“The future promises a dynamic shift in the landscape with an influx of new players, as the market recognises the vast potential of virtual tourism in the UAE – as also in the wider region,” said the top executive of LandVault, which claims to have already built over 100 million square feet in metaverse experiences for several global brands, including Mastercard, Standard Chartered, Hershey, and more.
The company, which expanded into Dubai earlier in 2023, is currently heavily investing in the region, already building digital twins for real estate companies, amongst other projects.
Huber said embracing the metaverse and virtual experiences can be largely beneficial to the tourism sector in the UAE in its drive to raise the sector’s contribution to AED450 billion of GDP by 2031.
Virtual tourism: Transforming UAE’s travel sector
Huber said virtual tourism is set to transform the UAE’s tourism sector by providing a “try before you buy” experience, enticing potential travellers with immersive previews of destinations.
“While it doesn’t aim to replace physical tourism, it complements it by sparking interest and boosting bookings,” he said.
Tourism industry experts said the easy accessibility virtual tours offer to iconic but remote locations will help expand the potential tourist base in leading tourist destinations such as the UAE.
Virtual tourism also serves as a valuable planning tool, enhancing the overall travel experience and ultimately contributing to the sector’s growth and value in the future, they said.
Several factors are cited as drivers for the growth of virtual tourism in the UAE, including the rise of technological advancements, a desire for remote experiences, and an increasing demand for sustainable travel.
“It’s instantaneous, accessible, and sustainable,” the LandVault chief executive said.
He said the opportunities in the virtual tourism sector in the UAE are abundant.
“According to estimates, the metaverse could bring a benefit of up to $16.7 billion per year in the UAE, while it can reportedly contribute up to $50 billion in additional GDP in the Middle East and North Africa by 2035,” Huber said.
According to the UAE Ministry of Economy, the contribution of the travel and tourism sector to the country’s GDP was nearly $34.6 billion (AED167 billion) in 2022.
Hyper-personalised tourism: AI’s rising role
Industry insiders said the UAE tourism sector is currently witnessing a surge in the use of AI for trip planning, with 60 percent of UAE travellers expecting AI assistance, compared to 48 percent globally.
Additionally, there is also said to be a rising demand for hyper-personalised experiences by tourists.
This has led to companies such as Miral developing FacePass, a facial recognition technology used in Yas Theme Parks, enabling seamless entry and contactless payments for visitors.
Huber said LandVault is also set for a major expansion beyond Dubai and the UAE into the wider MENA region, and recently roped in Mohamed Khalifa, a tech pioneer who has previously served as CTO for blockchain and game studios, as the Vice President of Metaverse to lead the company’s Middle East expansion.
“We are also substantially investing in the region – collaborating with local governments, real estate firms, and other undisclosed projects slated for reveal in Q1 and Q2 2024,” Huber said.
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