Tourism is a key factor that drives a significant share of the country’s retail business.
The Bahrain retail real estate market has grown steadily, with the addition of at least one retail mall each year since 2007. Given the demographic characteristics and the size of the economy, this indicates the presence and impact of external drivers on the retail sector. We explore tourism as a key factor that drives a significant share ofthe country’s retail business.
At least 65% of tourists arrive from Saudi Arabia, accounting for a dominant revenue share of retail business. As a result, the sector is vulnerable to upcoming transformations in Saudi Arabia, such as the liberalization of the tourism visa regime, investments in hospitality and retail, and the development of integrated tourism destinations. As such, being proactive is not only the primary call to action, but a necessity for being resilient to any changes in the external environment which have an impact on the sector.
While examining the current state of the retail real estate market, thispaper raises questions for leaders about market maturity and highlights the impact of tourism on the sector. It is intended to bring new perspectives and generate responsible course of action choices. It also reflects on six breakthrough ideas to help grow the future retail market through tourism.
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