Arab News, Saturday, Mar 20, 2021 | Shaaban 6, 1442
UAE tourism seen as top play by Bank of America as global travel resumes
Emirates: The UAE could be one of the biggest
beneficiaries from a resumption of global travel in the second half of the year
according to Bank of America Merrill Lynch.
It named Dubai-based bank Emirates NBD as its top local play for investors as it
was likely to “benefit from tourism-driven economic growth, credit demand and
asset quality.”
The bank also said that Egypt was poised to rebound strongly, especially if
direct flights between Russia and the Red Sea are restored. Prior to the
suspension of all flights in 2015, Russians accounted for almost a third of all
arrivals.
“The UAE's exposure to tourism and global trade, as well as its proactive
vaccination program, suggests it could benefit from a global recovery if the
COVID pandemic dissipates,” said MENA economist Jean-Michel Saliba, in the
report.
Both the UAE and Egypt had developed a thriving mass tourism industry before the
pandemic paralyzed global travel a year ago. Now both countries are hoping to
tap into growing global appetite for travel from vacation-starved consumers.
A relatively recent bonus for the UAE tourism industry has been the
normalization of ties with Israel. Since the first commercial flight between the
UAE and Israel launched in November, almost 70,000 Israelis visited the country
over two months.
As both countries have some of the world’s fastest vaccination programs,
authorities have suggested a bilateral quarantine-free corridor is one potential
option.
The rescheduled World Expo 2020 could provide upside to growth, the bank said.
The event will now take place from October 2021 to March 2022 - which may tie in
with a loosening of global travel restrictions while also corresponding to the
peak travel months.
Elsewhere the bank said Greece and Turkey also stood to benefit from the
resumption of global travel.