The Middle East travel sector is on an impressive trajectory, with a forecasted 40% growth expected to push total bookings beyond $127 billion by 2027. This optimistic outlook is detailed in the latest Middle East Travel Market Report from Insight Out Consultancy in collaboration with Phocuswright, highlighting the region’s robust recovery and evolving travel landscape.
Significant Year-Over-Year Growth: The report indicates a 13% year-over-year increase in gross travel bookings for 2023, significantly outpacing the region’s GDP growth. The UAE stands out as a leader, recording an impressive $44.5 billion in gross bookings, marking a 12% increase from the previous year.
UAE’s Dominance in Travel: The UAE continues to be a powerhouse in the Middle East travel market, driven by substantial investments in tourism infrastructure, including hotels and attractions. The hotel sector alone saw a 16% rise in bookings, fueled by a diverse range of accommodation options and a surge in both inbound and domestic tourism.
Saudi Arabia’s Ambitious Growth Plans: Saudi Arabia’s travel sector has also seen remarkable growth, reaching $17 billion in gross bookings for 2023—a 16% increase year-over-year. This growth is attributed to rising domestic travel and major initiatives like the Red Sea Project and Neom City, which are part of the country’s Vision 2030 strategy aimed at diversifying its tourism offerings.
Qatar’s Post-World Cup Momentum: Following the FIFA World Cup 2022, Qatar’s travel industry has continued to thrive, with gross bookings nearing $16 billion, an 8% increase from the previous year. The nation is focusing on diversifying its tourism products and enhancing cultural and ecotourism attractions to sustain this momentum.
Egypt’s Resilient Tourism Recovery: Egypt’s tourism sector has surpassed expectations, attracting nearly 15 million visitors in 2023 and achieving record revenues. Despite facing challenges such as currency devaluation and geopolitical tensions, Egypt’s strategic marketing and safety measures have bolstered its appeal as a tourist destination.
Digital Transformation Driving Growth: The report highlights a significant shift towards digitalization within the region’s travel market. Online bookings now account for 46% of total gross bookings, reflecting increased adoption of technology by travel suppliers to meet the demands of a tech-savvy consumer base.
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