Sales Analysis of Tourism Industry in the Middle East

Analytical Study of Tourism Industry in the Middle East (2024 to 2034)

Instagram reels and TikTok videos are making more millennials and Gen Z travelers loosen their pockets and visit the Middle East. As such, tourism industry expansion in the Middle East is estimated at a 5.10% CAGR until 2034. The tourism industry in the Middle East is on the way to reaching USD 453.28 billion by 2034. In 2024, the industry is anticipated to be worth USD 275.64 billion.

Attributes	Details
Industry Size in 2024	USD 275.64 billion
Expected Industry Size in 2034	USD 453.28 billion
Forecasted CAGR between 2024 to 2034	5.10%

Key Trends Influencing the Industry Through 2034

More Millennials and Gen Zers Make Visits to the Middle East

Millennials and Gen Z are changing travel and tourism. They tend to care more about experiences than things and want authentic trips. They use technology a lot to plan trips and share their experiences online.

They look for unique and meaningful travel experiences that match their values. Because they travel a lot to the Middle East, businesses are changing how they offer services and advertise to meet their needs. It shows that younger people have a big influence on the tourism industry.

Governments Know the Importance of Tourism and Their Policies Highlight it

In the Middle East, governments are focusing on tourism to grow their economies. They are making it easier for tourists to visit the region by changing visa rules and improving entry procedures. Hosting big events and cultural exhibitions helps to show off the region's attractions to people from around the world.

Governments also help tourism by building better roads and facilities, running ads to attract tourists, and making rules that support the industry. All these efforts make it easier for tourism to grow, bringing in more investment and creating jobs for people in different fields. An example is the UAE’s Tourism Strategy 2031. It fortifies UAE’s position as a leading tourism destination. This policy is helping in developing and diversifying tourism products and services.

Infrastructure Development is Happening at Lightning Pace

Countries like the UAE, Qatar, and Saudi Arabia are seeing the building of lots of fancy attractions to entice tourists. With nice hotels and easy transportation, more tourists want to come and have a good time. This helps the tourism industry grow and makes these countries popular destinations for travelers.

The chairman of Abu Dhabi's Department of Culture and Tourism announced plans to invest more than USD 10 billion in infrastructure as part of the emirate's new tourism strategy. To complement the Abu Dhabi Tourism Strategy 2030, the emirate plans to increase the number of hotel rooms to 52,000 from the existing 34,000.

In February 2024, the Emirates Tourism Council released the 'National Tourism Charter', which is an important component of the National Tourism Strategy 2031. The program intends to coordinate national efforts to promote the UAE tourism industry's long-term growth and competitiveness at the global and regional levels.

It will assist in establishing the country as an important contributor in the global travel and tourism environment, as well as encourage collaboration among the seven emirates to improve tourism destinations and products.

Key Insights - Highlights on the Emerging Opportunities in the Middle East Tourism Industry

• Space tourism can be promoted. Mohammad Bin Rashid Space Center is a prominent example of a space tourism attraction with potential. Businesses can benefit from the interest in space by developing space-themed tours and attractions.
• Hospitals and wellness centers can attract patients from other countries. This can be achieved by offering special treatments and wellness programs. They can team up with hotels, travel agencies, and others to make complete medical tourism packages.
• Businesses can team up with schools and universities to offer tours and study abroad programs. These give students hands-on learning and cultural experiences. Tours can include visits to museums, historical sites, and workshops.

Category-wise Insights

Online Booking Dominates as Leading Booking Channel

Leading Booking Channel for Tourism in the Middle East	Online Booking
Total Value Share (2024)	36.80%

Online booking platforms make planning trips to the Middle East easy. With smartphones and an internet connection, travel booking can be done anytime, anywhere. Visitors can choose hotels, flights, and activities that fit their budget and preferences. These platforms also offer good deals and discounts, saving money for travelers. Plus, they confirm bookings instantly, so travelers don't have to wait. If plans change, they can modify or cancel easily without extra fees.

Websites like Expedia, MakeMyTrip, Booking.com, and Airbnb are user-friendly. They also offer customer support that is available 24/7. Travelers feel safe because of secure payment systems and the protection of personal information. Overall, online booking platforms have changed how people travel in the Middle East, making it simpler, more flexible, and more secure.

Leading Age Group for Tourism in the Middle East	26 to 35 Years
Total Value Share (2024)	30.50%

People in this age group mostly have more money to spend because they've finished their schooling and have stable jobs. They may travel for work, weddings, or family vacations. Social media also influences them to travel by showing them cool places and experiences.

Some tourists in this age group are also entrepreneurs looking for inspiration and business connections. Some are also concerned about the environment and choose eco-friendly travel options. They care about sustainability and want to support conservation efforts. Many have flexible jobs, so they can take longer trips or work while traveling. Traveling helps them learn about themselves and other cultures. They can easily find travel information online and plan their trips.

Tourism Hotspots in the Middle East Driving the Industry

When we think about the Middle East, the Hajj comes to mind first. Muslim followers from all over the world visit Mecca for the Hajj pilgrimage, which is revered as a holy place for Muslims worldwide. Situated in Saudi Arabia, this hotspot significantly adds to the demand for Middle Eastern tourism.

Here are some other tourism hotspots that boost revenues in the Middle East

Petra, Jordan: Petra is an ancient city in southern Jordan, renowned for its stunning architecture and archaeological significance. Highlights of this Middle Eastern tourist place include the Treasury (Al-Khazneh), the Monastery (Ad Deir), and the Siq, a narrow canyon leading to the city's entrance. Jordan’s tourism sector added nearly 14.6% to the GDP in 2023 despite challenges.

Jerusalem, Israel: Jerusalem is a sacred city revered by three monotheistic religions - Judaism, Christianity, and Islam. The country had nearly 2.5 million tourists in 2023. The tourism sector in Israel accounts for 2.8% of the GDP and nearly 3.5% of total employment. In 2023, Israel’s tourism income was USD 5.955 billion.

Cappadocia, Türkiye: Cappadocia is famous for its surreal landscape of fairy chimneys, rock formations, and underground cities. Türkiye’s tourism revenues reached USD 54.32 billion in 2023, marking a 17% increase from 2022’s USD 46.48 billion.

In recent years, however, there has been a recorded uptick in violence across the Middle East. According to press sources, Iraq and Syria are insecure due to incidents of violence and disorder, as well as the influence of some extreme organizations. The rising tension between Israel and Palestine over the Gaza Strip has made the region less safe as well.

Competitive Landscape

The Middle East tourism industry is intensely competitive, with prominent airlines, hotels, and internet booking platforms fighting for share. Airlines like Emirates, Qatar Airways, and Saudia compete for passengers, while hotel brands like Marriott and Hilton fight for supremacy in key locations like Dubai and Abu Dhabi.

Online travel firms such as Booking.com and Expedia provide another layer of competition by attracting travelers through technology and marketing. Economic considerations, shifting consumer tastes, and geopolitical dynamics shape the environment, necessitating agility and innovation to remain competitive. Differentiation, customer focus, and investment in technology and sustainability are critical tactics for firms looking to flourish in this changing industry.

Recent Developments

• In October 2023, Abdulla bin Touq, the UAE's Minister of Economy, announced plans for cooperation among Middle Eastern countries to develop a sustainable and creative tourist sector that can support their economies in the long run.
• In July 2023, Central Hotels & Resorts (UAE), launched a sustainable tourism campaign. As part of the campaign, the brand will engage in efforts like minimizing plastic waste by using wooden alternatives.

Key Coverage in the Tourism Industry Report for the Middle East

• Outlook for the Middle East’s Travel and Tourism Sector
• Inbound Visitor Growth in the Middle East
• Insights into the Middle East Tourism’s Fading Momentum
• Outbound Visitor Growth in the Middle East
• Revenue Analysis of the Middle East Healthcare Tourism Industry

Scope of the Report

Attribute	Details
Estimated Industry Size in 2024	USD 275.64 billion
Projected Industry Size by 2034	USD 453.28 billion
Anticipated CAGR between 2024 to 2034	5.10% CAGR
Historical Analysis of Demand for Tourism in the Middle East	2019 to 2023
Demand Forecast for Tourism in the Middle East	2024 to 2034
Report Coverage	Industry Size, Industry Trends, Analysis of Key Factors influencing Tourism in the Middle East, Insights on Global Players and their Industry Strategy in the Middle East, Ecosystem Analysis of Local and Regional Middle East Manufacturers
Key Countries Analyzed While Studying Opportunities in Tourism in the Middle East	Saudi Arabia, Bahrain, Jordan, Oman, Kuwait
Key Companies Profiled	Emirates Group; Saudi Arabian Airlines (Saudia); Qatar Airways; Etihad Airways; Jumeirah Group; Marriott International; Hilton Worldwide; AccorHotels; InterContinental Hotels Group (IHG); Emaar Hospitality Group; Dubai Tourism; Abu Dhabi Tourism & Culture Authority; Oman Tourism Development Company (Omran); Jordan Tourism Board; Egypt Tourism Authority; Royal Caribbean Cruises; MSC Cruises; Carnival Corporation; TUI Group;Airbnb

Key Segments

By Booking Channel:

• Phone Booking
• Online Booking
• In-person Booking

By Consumer Orientation:

• Men
• Women
• Children

By Age Group:

• 15 to 25 years
• 26 to 35 years
• 36 to 45 years
• 46 to 55 years
• 56 to 65 years
• 66 to 75 years

By Tour Type:

• Independent traveler
• Tour Group
• Package Traveler

By Tourist Type:

• Domestic
• International

Frequently Asked Questions

How Rapidly is the Demand for Tourism in the Middle East Growing? 

The expected CAGR until 2034 stands at 5.10%. 

What is the Demand Outlook for Tourism in the Middle East? 

Demand for tourism in the Middle East is projected to reach USD 453.28 billion by 2034. 

Which Trends Influence the Demand for Tourism in the Middle East?

Sustainable packaging trends influence the demand for tourism in the Middle East.

What Strategies are used by Tourism Sector Companies in the Middle East?

Tourism services in the Middle East are emphasizing sustainability strategies.

What is the Preferred Booking Channel for Tourism in the Middle East?

Online booking channels are highly popular in the industry.