Embracing cutting-edge technology and societal shifts for a new wave of immersive travel
The tourism industry is an ever-evolving one, shaped by emerging trends and technology. With the pandemic having accelerated significant changes that are shifting the industry towards an uncharted new course, hyper-personalisation, collaboration with ecosystem partners, sustainability, and workforce upskilling are becoming key focuses. The demand for multi-sensory tourism experiences is also on the rise, and organisations are using digital, innovation, and emerging tech to augment these experiences.
Immersive reality – defined by Saudamini Dubey, Deloitte Middle East’s emerging tech and innovation lead partner as “a confluence of technologies that enable the creation of immersive and seamless experiences that integrate our physical and virtual worlds” – is the latest technological development revolutionising how people experience and interact with destinations. In the tourism sector, immersive reality allows users to explore and experience destinations in new and exciting ways. These experiences include virtual tours of landmarks, augmented reality guides for city exploration, and the creation of digital twins to create personal and immersive experiences for customers.
The emergence and rising adoption of immersive reality in the Middle East and globally is a prime example of how the tourism industry is focusing on innovative ways to provide travellers with new, more personal and meaningful experiences.
The rise of experiential and immersive tourism in the Middle East
As the Middle East looks to diversify its economy, tourism is well-positioned to be a key driver. The UAE’s tourism sector is expected to contribute 12.4 per cent to GDP in 2027, while Saudi Arabia aims to contribute 10 per cent of its overall GDP through its tourism sector, as outlined in its Vision 2030 plan. UNWTO stated that “Saudi Arabia’s achievement of welcoming over 100 million tourists in 2023 is a beacon of what is possible through collaboration, innovation, and a clear vision for the future.”
As more companies and potential travellers turn to virtual solutions, the global virtual tourism market is expected to reach $6.5 billion by 2030, according to a report by Allied Market Research. A Deloitte article titled “The Metaverse and its potential for MENA” stated that the metaverse [and immersive technologies] could contribute up to $38 billion to the Saudi Economy and $16.7 billion to the UAE Economy by 2035 – and with its potential to not only enhance the customer experience but also promote destinations to a global audience, immersive reality is set to play a significant role in shaping the future of the Middle East’s tourism industry.
The Middle East is a region at the forefront of innovation, and immersive reality will be no exception. With its stunning landscapes and rich cultural heritage, the region is uniquely positioned to benefit from these technologies and emerge as a leading destination for experiential and immersive tourism.
The Business Impact
Immersive reality is a powerful tool for creating exceptional experiences that can differentiate one from the competition. In today’s highly competitive tourism industry, organisations must constantly innovate and find new ways to attract and retain customers, train employees, and improve collaboration and decision-making. Embracing these technologies is certainly one way to do so in the tourism industry, with their significant potential to promote destinations to a global audience and provide travellers with more captivating multi-sensory and multi-use personalised experiences. Singapore, for example, has developed a virtual Changi Airport on Roblox to allow users to experience a virtual representation of popular airport features, such as the indoor waterfall. By offering virtual tours and new experiences, tourism organisations can differentiate themselves from competitors, generate interest in the destination, and ultimately increase revenue and profitability.
Integrating immersive reality into an organisation’s overall business strategy can engage customers in more meaningful ways, by allowing them to explore destinations and attractions in ways that were previously impossible. One prime example is UNWTO and NEOM’s “Tourism Experiences of the Future” challenge to source new ideas and disruptive business models, catering for the growing demand of these experiences.
Immersive reality can also help organisations optimise their operations and improve efficiency, leading to significant cost savings. By streamlining processes and reducing the need for physical infrastructure, businesses can lower their overheads, while still delivering exceptional experiences to customers. Egypt’s launch of a 3D VR programme to promote medical tourism did this in exceptional fashion.
In sports tourism, meanwhile, the integration of immersive experiences can generate new revenue streams and enhance fan engagement, leading to increased exposure and awareness. The NBA, for instance, is using VR to allow fans to enjoy basketball games from the comfort of their own home, while using AR apps to increase fan experience and engagement. By adopting immersive reality strategies, sports organisations can create unique and memorable experiences that differentiate themselves from competitors and attract a wider audience. These experiences also provide valuable data insights into fan behaviour and preferences, which can inform marketing and promotional campaigns. They can also create opportunities for collaboration and partnerships between sports organisations and local businesses, generating new revenue streams for both parties.
Cultural tourism has become increasingly popular across the globe in recent years, and the adoption of immersive reality can further support its growth and development. Paris’s Musée d’Orsay uses VR technology to provide an experience for visitors to immerse themselves into the everyday life of the Impressionism era, while Saudi Arabia recently launched the world’s first national “metaverse platform” to showcase its many cultural attractions to visitors both in the kingdom and globally. Cultural tourism can not only foster greater understanding and appreciation of different cultures, promote intercultural dialogue, and preserve cultural heritage for future generations, but by promoting a region’s cultural heritage through immersive experiences, businesses can also attract more visitors and create new job opportunities. This can contribute to the socio-economic development of local communities, improve the quality of life for residents, and drive economic growth and prosperity in the region.
The Middle East’s innovative adoption of immersive reality technologies has the potential to redefine the tourism industry. Tourism organisations in the region have the opportunity to define a new era of excellence in terms of sustainable growth, responsible practices, and unforgettable experiences. By doing so, the region will be poised to captivate and inspire modern travellers for years to come, cementing its position as a top-tier destination and a global trendsetter.
Integrating immersive reality into a business strategy
As stakeholders embark on their immersive reality journeys, it is vital to prioritise the creation of experiences that are hyper-personalised, multi-sensory, and built on trust through responsible practices. The following guiding principles should also be taken into consideration for tourism organisations:
- Immersive reality is about enhancing user-centric experiences with technology as an enabler, while being mindful of health and well-being.
- Responsible immersive experiences are built on a foundation of trust, where cybersecurity and safety, digital identity, digital payments, governance, and regulation are fundamental pillars.
- Collaboration and orchestration are critical to implementing immersive and spatial technologies in tourism and bringing engaging experiences to life.
- A human-centred design approach should be taken into consideration when creating digitally inclusive, immersive experiences.
- Continuous learning and experimentation in an immersive lab environment are essential for staying ahead in the constantly evolving field of immersive technologies.
- Localising content and being culturally sensitive are crucial factors in driving adoption and fueling growth in the digital economy.
- Designing immersive experiences with sustainability and responsibility in mind is essential for a responsible immersive reality journey.
Words by Saudamini Dubey and Salimah Esmail. Saudamini Dubey is the emerging tech and innovation lead partner at Deloitte Middle East. Salimah Esmail is a digital transformation and innovation offering lead at Deloitte Middle East.
