Terminal 3 at Dubai International Airport, the world's busiest hub by international passengers. AFP
Terminal 3 at Dubai International Airport, the world's busiest hub by international passengers. AFP
Terminal 3 at Dubai International Airport, the world's busiest hub by international passengers. AFP
Terminal 3 at Dubai International Airport, the world's busiest hub by international passengers. AFP

Middle East air passenger traffic in 2023 to reach 96.8% of pre-Covid levels


Deena Kamel
  • English
  • Arabic

The Middle East's air passenger traffic is forecast to reach 96.8 per cent of pre-Covid levels in 2023, handling 394 million travellers, as the region continues its recovery from the effects of the pandemic.

The region's passenger volumes are expected to fully recover in 2024, with a projected 429 million travellers, or 105.4 per cent of 2019 levels, according to the Airports Council International World.

The Middle East was the fastest-recovering travel market in 2022 with this streak expected to continue in 2023, the trade association for airports – representing nearly 2,000 airports worldwide – said in its industry outlook for 2023–2024.

This comes as the Middle East's tourism sector has recorded the strongest post-pandemic rebound in the world, despite persistent global economic challenges, according to a separate report by HSBC.

The region, home to the biggest Arab economy, Saudi Arabia, and the global leisure and commercial hub of the UAE, is unique in recording a “total recovery” in terms of tourist arrivals in the first quarter of 2023, the bank said in its August report.

The number of tourist arrivals in the first three months of this year climbed 15 per cent compared with levels recorded in 2019.

ACI World projects that global air travel will nearly return to pre-pandemic levels by the end of 2023, with all regions expected to reach this mark in 2024.

Global volumes in 2023 will reach 8.6 billion passengers, which is 94.2 per cent of the 2019 level, before fully recovering in 2024.

Next year is expected to be a milestone for global passenger traffic recovery as it reaches 9.4 billion passengers, exceeding the 9.2 billion passengers recorded in 2019.

However, compared with the pre-Covid forecast that predicted 10.9 billion passengers globally in 2024, the effects of the pandemic represent a potential loss of 13.9 per cent, ACI World's data shows.

"Upside factors include the reopening of the Chinese market and surge in domestic travel, supply chain disruptions gradually subsiding and inflation slowing down," said Luis Felipe de Oliveira, ACI World's director general.

"While downside risks remain present ... we are filled with optimism about the industry's future.

"This sector remains a steadfast force in global economic recovery, bridging connections among people, cultures and economies.”

  • Seeing Dubai's Burj Khalifa, the tallest building in the world, is number 10 on travel firm Kuoni's list. Randi Sokoloff / The National
    Seeing Dubai's Burj Khalifa, the tallest building in the world, is number 10 on travel firm Kuoni's list. Randi Sokoloff / The National
  • Visiting the Maldives in the Indian Ocean tops the list, which was created using search data from more than 200 countries. Photo: Cinnamon Hotels
    Visiting the Maldives in the Indian Ocean tops the list, which was created using search data from more than 200 countries. Photo: Cinnamon Hotels
  • Niagara Falls, on the US/Canada border and the second largest waterfall in the world, is number two. Photo: Mert Alper Dervis / Anadolu Agency
    Niagara Falls, on the US/Canada border and the second largest waterfall in the world, is number two. Photo: Mert Alper Dervis / Anadolu Agency
  • Seeing the Mona Lisa, the work of Leonardo da Vinci, at the Louvre Museum in Paris is number three. Reuters
    Seeing the Mona Lisa, the work of Leonardo da Vinci, at the Louvre Museum in Paris is number three. Reuters
  • Known for its brilliantly turquoise waters, Bora Bora in the South Pacific is number four. Getty Images
    Known for its brilliantly turquoise waters, Bora Bora in the South Pacific is number four. Getty Images
  • Climbing the 93 metre-tall Statue of Liberty in New York is number five. Getty Images
    Climbing the 93 metre-tall Statue of Liberty in New York is number five. Getty Images
  • Seeing the aurora borealis, or Northern Lights, is number six. Reuters
    Seeing the aurora borealis, or Northern Lights, is number six. Reuters
  • Stonehenge, built using sophisticated construction techniques, in south-west England, is number seven. PA Images
    Stonehenge, built using sophisticated construction techniques, in south-west England, is number seven. PA Images
  • Visiting the Taj Mahal, built between 1632 and 1648 in Agra, India, is number eight. Getty Images
    Visiting the Taj Mahal, built between 1632 and 1648 in Agra, India, is number eight. Getty Images
  • New York's Times Square, a major tourist destination in Midtown Manhattan, is at number nine. Getty Images
    New York's Times Square, a major tourist destination in Midtown Manhattan, is at number nine. Getty Images
  • Visiting Pompeii in Italy is number 11. Getty Images
    Visiting Pompeii in Italy is number 11. Getty Images
  • A visit to Sagrada Familia in Barcelona is at number 12. Getty Images
    A visit to Sagrada Familia in Barcelona is at number 12. Getty Images
  • Cinque Terre, a string of five fishing villages on the Italian Riviera, is number 13. Getty Images
    Cinque Terre, a string of five fishing villages on the Italian Riviera, is number 13. Getty Images
  • Seeing Big Ben in London is at number 14. Getty Images
    Seeing Big Ben in London is at number 14. Getty Images
  • Walking to Chichen Itza in Mexico is number 15. Getty Images
    Walking to Chichen Itza in Mexico is number 15. Getty Images
  • A trek through the Himalayas is number 16. Getty Images
    A trek through the Himalayas is number 16. Getty Images
  • Visiting Alcatraz, a former federal prison in the bay of San Francisco, US, is number 17. Getty Images
    Visiting Alcatraz, a former federal prison in the bay of San Francisco, US, is number 17. Getty Images
  • Visiting the White House in Washington DC, US, is number 18. Getty Images
    Visiting the White House in Washington DC, US, is number 18. Getty Images
  • Floating on the Dead Sea salt lake is number 19. Getty Images
    Floating on the Dead Sea salt lake is number 19. Getty Images
  • Admiring the views at Yosemite National Park in California is number 20. Getty Images
    Admiring the views at Yosemite National Park in California is number 20. Getty Images

The Latin America and Caribbean region is forecast to be the first in the world to surpass its 2019 level.

This year, the region is estimated to reach 707 million passengers, or 102.9 per cent of the level in 2019. In 2024, the region is expected to welcome 759 million passengers, or 110.5 per cent of the pre-Covid level.

Emerging markets such as Colombia and Mexico are predicted to drive the region to recover beyond 2019 levels, the report said.

Africa is expected to reach 221 million passengers, or 96.3 per cent of the 2019 level, in 2023. The region is forecast to reach 253 million passengers, or 110.6 per cent of the pre-Covid level, by the end of 2024.

This steady growth is expected to be driven by emerging markets such as Egypt, Morocco and Tunisia, ACI World said.

Asia-Pacific is expected to record a "substantial jump" in passenger traffic in the first half of 2023 along with the continuing opening of the Chinese market.

However, its recovery is predicted to slow significantly in the second half of the year due to challenges in overseas tourism and looming economic concerns, the report said.

By the end of the year, the region is expected to reach 2.9 billion passengers, or 87.3 per cent of the 2019 level.

The Asia-Pacific region is expected to reach approximately 3.4 billion passengers, or 99.5 per cent of the pre-Covid level, in 2024.

  • An Egyptian sells shisha pipes on Elmoez Lideen Ella in Old Cairo. All photos: EPA
    An Egyptian sells shisha pipes on Elmoez Lideen Ella in Old Cairo. All photos: EPA
  • The complex of Sultan Qalawun on the historical street of Elmoez Lideen Ella, which has been renovated
    The complex of Sultan Qalawun on the historical street of Elmoez Lideen Ella, which has been renovated
  • Outlets in Khan El Khalili bazaar
    Outlets in Khan El Khalili bazaar
  • The complex of Sultan Qalawun was built in 1284 by Sultan Al Mansur Qalawun
    The complex of Sultan Qalawun was built in 1284 by Sultan Al Mansur Qalawun
  • Copper goods for sale. The complex has a mosque-madrasa and a mausoleum
    Copper goods for sale. The complex has a mosque-madrasa and a mausoleum
  • The area's mauristan, meaning hospital, was replaced by a modern hospital in the 1920s
    The area's mauristan, meaning hospital, was replaced by a modern hospital in the 1920s
  • Painter Nabil at his art shop, which sells items from Napoleon's expedition to Egypt
    Painter Nabil at his art shop, which sells items from Napoleon's expedition to Egypt
  • A camera repair shop on the street
    A camera repair shop on the street
  • The front of the complex of Sultan Qalawun
    The front of the complex of Sultan Qalawun

Recovery in Europe is expected to slow this year and next, in contrast with the sharp surge recorded during its 2022 summer season, ACI World said.

By the end of 2023, about 2.3 billion passengers are expected in the region, or 95.5 per cent of the 2019 level. This will further increase in 2024 while at a slower pace, to about 2.5 billion passengers, or 101.4 per cent of the pre-pandemic level.

By the end of 2023, North America is estimated to reach two billion passengers, or 99.8 per cent of the 2019 level.

While the region showed a strong recovery during 2021 and 2022, driven by domestic travel, its growth for the next couple of years is expected to continue at a slower pace, ACI World said.

In 2024, passenger traffic in the region is forecast to reach 2.1 billion passengers, or 103.7 per cent of the pre-Covid level.

if you go

The flights

Flydubai flies to Podgorica or nearby Tivat via Sarajevo from Dh2,155 return including taxes. Turkish Airlines flies from Abu Dhabi and Dubai to Podgorica via Istanbul; alternatively, fly with Flydubai from Dubai to Belgrade and take a short flight with Montenegro Air to Podgorica. Etihad flies from Abu Dhabi to Podgorica via Belgrade. Flights cost from about Dh3,000 return including taxes. There are buses from Podgorica to Plav. 

The tour

While you can apply for a permit for the route yourself, it’s best to travel with an agency that will arrange it for you. These include Zbulo in Albania (www.zbulo.org) or Zalaz in Montenegro (www.zalaz.me).

 

BLACK%20ADAM
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'My Son'

Director: Christian Carion

Starring: James McAvoy, Claire Foy, Tom Cullen, Gary Lewis

Rating: 2/5

Desert Warrior

Starring: Anthony Mackie, Aiysha Hart, Ben Kingsley

Director: Rupert Wyatt

Rating: 3/5

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Our legal consultant

Name: Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.

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The specs

Engine: 2-litre 4-cylinder and 3.6-litre 6-cylinder

Power: 220 and 280 horsepower

Torque: 350 and 360Nm

Transmission: eight-speed automatic

Price: from Dh136,521 VAT and Dh166,464 VAT 

On sale: now

TOURNAMENT INFO

Fixtures
Sunday January 5 - Oman v UAE
Monday January 6 - UAE v Namibia
Wednesday January 8 - Oman v Namibia
Thursday January 9 - Oman v UAE
Saturday January 11 - UAE v Namibia
Sunday January 12 – Oman v Namibia

UAE squad
Ahmed Raza (captain), Rohan Mustafa, Mohammed Usman, CP Rizwan, Waheed Ahmed, Zawar Farid, Darius D’Silva, Karthik Meiyappan, Jonathan Figy, Vriitya Aravind, Zahoor Khan, Junaid Siddique, Basil Hameed, Chirag Suri

Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

Updated: September 29, 2023, 4:46 AM