Though the UAE is known for its oil production, and its economy depends heavily on it, the tourism industry serves as a major amplifier for economic divergence.
The travel and tourism industry contributes USD 43.3 billion to UAE’s economy per annum, which is 12.1 percent of GDP. By 2027 it is forecast to rise to USD 70 million.
More than 5 million people visited the UAE in 2020. Despite the pandemic, the travel industry continues to thrive. And only rough estimates can be given what it will like in the upcoming years.
But I have an interesting scenario to share with you. Since most of the tourists in Dubai come from developed countries where digital currency is becoming a norm, UAE’s tourism industry can further grow.
There are various complexities of traveling that cryptocurrency can simplify and make visiting the UAE easier than before.
Easy Payment Method For Tourists
This is one of the areas where cryptocurrency can make a difference. While traveling to any foreign country, visitors have to do some research regarding the different payment methods.
And no matter if you find it safe or not, you have to carry some cash in your pockets. Though debit and credit cards are accepted everywhere in UAE, you still need cash for shopping from stalls, eating from small cafes, traveling via taxi, etc.
Currency scams are common in all parts of the world — especially popular tourist attractions like the UAE. Dubai is the tourism hub that also provides you various avenues to Cash Out Bitcoin in Dubai.
Since there’s no middleman involved in crypto transactions and blockchain is secure by all means, people won’t have to worry about scams.
Most importantly, they won’t have to carry a huge amount of cash or multiple cards with them and remain concerned about their security throughout the visit.
As the trends suggest, if cryptocurrency becomes common in UAE, foreigners would prefer UAE over other destinations because of ease of payment.
Less Frauds With Travel Agents
Cryptocurrency would not only benefit visitors but travel agents as well. Frauds in the forms of refunds and chargebacks have become common in all industries.
For instance, when the payment is done via a card, a person can ask for a refund upon receiving the product. This can happen with travel agents as well.
Blockchain prevents such frauds as there is no way to reverse a payment once the transaction has been completed.
This will help travel agents to reduce frauds with them and more people would feel confident about investing in the travel and tourism industry in UAE.
More Foreign Investment
In 2020, foreign direct investment (FDI) into the United Arab Emirates rose to $19.8 million per year — twice more than the previous year.
The UAE is considered a hot place to invest in hotels, restaurants, real estate, and financial services.
But the transaction of payment from another country to the UAE involves paperwork. And investors have to consider legal implications while investing their money.
Not that digital currency will eliminate this paperwork, but it will simplify the process.
There would be instant transactions with no bank or middle-man involved. Hence, investors won’t have to bear hefty transaction fees.
Thus, investors with solid digital assets would prefer to invest in UAE if crypto currency becomes the preferred means of transaction in the region.
More Job Opportunities in Tourism Industry
And once an industry starts thriving it creates new job opportunities for the locals. The UAE’s tourism industry is already accumulating a handsome revenue every year and has created thousands of jobs, but these can further increase.
When there is an influx of tourists, hotels, restaurants, water parks, and resorts have to hire more staff to cater to them.
As mentioned before, if acceptance of cryptocurrency brings more tourists to the UAE, new jobs will be created. And thus, locals too will enjoy the perks of cryptocurrency use in the travel industry.
More Business For Resorts, Hotels, Etc.
As it goes without saying, the more tourists the more the attached businesses will earn. These include hotels, cafes, shopping malls, transport sector, resorts, water parks, safari, and the list goes on.
With billions of dollars already coming from the travel and tourism industry, one might think this is the limit. But if you look at it from a different perspective and gaps that can still be filled, the sky’s the limit.
All you need is to remove the small hurdles tourists have to face. Cryptocurrency is the solution of so many of them — make transactions safer and faster so tourists can enjoy peace of mind.
With that said, if all things being equal and cryptocurrency becomes de facto the currency of the UAE, its economy will reach new heights.