May 9 – A new report by Alpen Capital, entitled GCC Retail Industry Report 2010, said the inflow of tourists and increasing number of passengers in transit will help fuel retail growth in the GCC retail industry. Other factors expected to boost growth in the retail industry are an increase in population, urbanization, and middle class (with increasingly higher per capital income). Gross leasable area (GLA) in the retail space may increase by six million square meters between 2010-2012 according to figures in the report.
The report’s authors are especially optimistic about increased demand for tourism and say absorption of the incremental retail space will depend on sustained strong growth in tourism. The report forecasts that tourists and passengers in transit will revive demand, further boosting sales in 2010. “As per our estimates, short-visit tourist retail sales are expected to register revival, while sales at duty-free shops at airports will rise significantly under the impact of rising passenger traffic.”
