The term 'experience economy', coined in the late 1990s by white paper contributor B. Joseph Pine II, refers to an economy in which value is achieved by moving away from the simple production of goods and delivery of service, in favour of creating and staging experiences designed to generate value.
According to the study, more than half of UAE respondents say they spend up to a quarter of their disposable income on experiences. Price (34 per cent) is the most important factor in selecting a new experience. Twenty six per cent of UAE respondents say they would be happy to spend more on experiences. Entertainment tops the list of“experience” spends, followed by dining and travel.
The research reveals a notable shift in demand from goods to experiences and highlights rising preferences for entertainment, dining and travel, with a trend towards local exploration rather than international adventures. Notably, social media, family, and friends strongly influence experience choices, while the pursuit of authenticity, hyper-personalisation, and digital innovation continue to shape the experience landscape.
B. Joseph Pine II, experience economy expert, said:“Dubai is the experience capital of the world. They got into the experience business to become a place where people want to come and tour and where they want to come and live. It is the creation of new-to-the-world experiences out of whole cloth. That requires a high degree of innovation.”
For those in the UAE, an experience is defined as something memorable, new or never attempted before, although weight is also given to trusted experiences. When looking for information or inspiration, around two-thirds head for social media or turn to friends or family, with less than a fifth relying on direct communication from a brand.
Understandably, the beach and sea feature strongly in must-haves for short experiences, and family fun is the top choice for a weekend break. Shows and concerts are popular, and bucket list experiences include a yacht trip, skydiving, hot air ballooning and riding in a helicopter.
Shamal owns some of Dubai's most unique and iconic leisure and entertainment destinations, including Kite Beach, Dubai Harbour, Five Guys, Skydive Dubai, XPark, XDubai, and Jumeirah Zabeel Saray.
Thomas Gilovich, professor of psychology at Cornell University and co-director of the Cornell Center for Behavioral Economics and Decision Research, said:“There's been more and more research supporting the notion that people get more enduring satisfaction from their experiential purchases than their material purchases. Historically, we have sought out bigger and better things to buy. We now live in a world where there are bigger and better and more exciting experiences to pursue as well.”
Abdulla Binhabtoor, chief executive officer of Shamal, said:“Dubai's experience economy is witnessing unprecedented growth, as highlighted by the latest statistics from the World Travel & Tourism Council. Our research underscores a common theme: the need to design experiences that create deeper resonance. As social beings, we naturally seek meaningful interactions and connections-experiences provide the platform for these remarkable moments. At Shamal, we are dedicated to cultivating the extraordinary, and we believe that this white paper will inspire transformative opportunities that contribute to a richer, more memorable experience economy for the UAE.”