With a long history as a centre for hotels and hospitality in the Gulf region, Bahrain is embarking on a journey to propel its tourism sector forwards. This move comes on the back of solid growth over the last several years, despite the severe setback to the global travel and leisure industry as a result of the Covid-19 pandemic. Amid ongoing global economic uncertainty exacerbated by recent conflicts, this expansion unfolds, signalling Bahrain’s resilience and determination to forge ahead in the tourism arena.
The kingdom has achieved success through various contributing factors – notably its proliferation of attractions – reinforcing its reputation as a premier entertainment and weekend destination. In addition to being renowned for its cultural, heritage, adventure and coastal offering, Bahrain has broadened its global appeal. The new sector strategy aims to tap into emerging source markets, diversifying the origins of its visitors and further enhancing its tourism industry.
The selection of Bahrain’s capital, Manama, as the Gulf Tourism Capital for 2024 by the tourism ministers of the GCC signifies a notable achievement for the kingdom within the region’s travel and leisure landscape. This designation not only acknowledges Bahrain’s ongoing efforts to advance the industry, but also underscores its increasing prominence as a key player in the Gulf’s tourism scene.
Structure
For many years, the primary government ministry responsible for the sector was the Ministry of Industry, Commerce and Tourism, under the leadership of Zayed bin Rashid Alzayani – who assumed the role in 2014. However, given the growing complexities and scale of responsibility in this ministry, Bahrain’s ruler, King Hamad bin Isa Al Khalifa, issued a royal decree creating the Ministry of Tourism (MoT) in June 2022 and appointed Fatima bint Jaafar Al Sairafi as minister. The MoT’s mandate includes responsibility for industry regulation, enforcement of the 1986 tourism law and oversight of Law No. 62 of 2006 that established the Bahrain Tourism and Exhibitions Authority (BTEA).
The BTEA is the driving force behind Bahrain’s official tourism promotion and development efforts. Established in 2015, it was created by the then Ministry of Industry, Commerce and Tourism to support the ministry’s efforts to develop the sector. The BTEA is led by CEO, Sara Ahmed Buhiji. The authority’s responsibilities include organising events in the meetings, incentives, conventions and exhibitions (MICE) space, and enhancing tourism’s contribution to the economy.
Oversight
The reorganisation encouraged adjustments to the 1986 tourism law. In December 2023 the Shura Council approved a series of amendments to the law, including granting increased powers for the BTEA to impose administrative penalties on those in breach of the 1986 regulations. The amendments establish an appeals process for these penalties. The aim is to help boost standards in the sector overall by eliminating bad actors and practices.
A further legal step came into effect in February 2024 when the MoT issued a resolution on a revised classification of hotels. The BTEA was given clear responsibility for undertaking this process, with a comprehensive set of new specifications and guidelines for classification issued along with the resolution. This new framework superseded the previous classifications, issued in 2015, and mandates inspections of hotels every four years to ensure structural integrity, monitor maintenance work and movable assets, and determine the need for reclassification.
This resolution was followed by the introduction of a new tourist levy on hotel accommodation. This decision had been announced in late 2023 but took effect on May 1, 2024. The levy is BD3 ($7.96) per day, per room and the charge is included in the overall room rate. Additionally, new rules and regulations on timeshares in hotels and tourist facilities were set. These are implemented from May 2024 and are designed to clearly define the rights of all parties in a timeshare – a mode of joint ownership which has seen a recent increase in popularity in the kingdom.
Cultural Heritage
Other important bodies within the sector include Bahrain Authority for Culture and Antiquities (BACA), whose mandate includes overseeing the culture sector in the kingdom. Meanwhile, the Culture and National Heritage Sector is responsible for formulating all plans and programmes related to culture, arts and heritage in the country, with a vision to update and develop the cultural infrastructure, while fostering the role of culture in socio-economic development.
Bahrain has an ancient history dating back to the key trading civilisation of Dilmun, approximately 4000 years ago. Among the notable remnants from that era is a series of burial mounds have been excavated and opened to the public on the western side of Bahrain Island, proving a popular attraction.
The burial mounds are a UNESCO World Heritage site, as is the Pearling Path. The site consists of a group of locations, including preserved buildings in Muharraq City, three oyster beds, part of the seashore and the Qal’at Bu Mahir fortress on Muharraq island, which is situated 4 km east of Manama. The pearling industry was the keystone of the local economy before oil and gas, and Bahrain is one of the few places in the Gulf where tourists may still dive for pearls. This takes place under strictly controlled and licensed diving conditions in the waters off Muharraq as part of the Bahrain Pearling Path. Unique for the Gulf, and even mentioned in the Quran, Bahrain’s coast features several ancient offshore freshwater springs, which are ideal habitats for oysters.
Bahrain has a third UNESCO site, Qal’at Al Bahrain. This was the ancient capital and harbour of Dilmun and is a major archaeological and museum site on the northern coast of the kingdom. The Hawar Islands Reserve – located 12 miles south-east of Bahrain – is slated to be the fourth site, and as of December 2024 was on the UNESCO’s tentative list. The reserve is noted for its coral reefs and seagrass beds – the natural preserve of the endangered sea cow, or dugong.
Additionally, BACA is responsible for Bahrain National Theatre, as well as Bahrain National Museum. It organises festivals such as the Spring of Culture in March and April, the Bahrain Summer Festival and the Bahrain International Music Festival, which takes place in October. BTEA, meanwhile, plans festivals, such as the Bahrain Food Festival and the Festival City, which offer a diverse range of entertainment and performances at Water Garden City.
Infrastructure Development
With transport an integral component of the tourism sector, the Ministry of Transportation and Telecommunications (MTT) is a key player in projects such as building causeways and modernising the airport, the latter of which is operated and managed by Bahrain Airport Company (BAC). Mumtalakat Holding, Bahrain’s sovereign wealth fund, owns BAC as part of the Gulf Air Group Holding. Gulf Air – originally owned by Bahrain, Oman, Qatar and Abu Dhabi – is now solely Bahraini. Gulf Air Group Holding is a major shareholder in Bahrain Airport Services, the airport’s duty-free company and the Gulf Aviation Academy.
Another key entity is the Supreme Council for the Environment (SCE), which must sign off on the sustainability of tourism projects, such as the Pearling Path. Elsewhere, the Bahrain Chamber of Commerce and Industry (BCCI) has a dedicated Hospitality and Tourism Committee, which first met in September 2022. The group discusses issues relevant to the sector and is composed of tourism professionals who regularly meet with the MoT and other officials to advance the sector’s interests.
Plans & Programmes
The BTEA and the MoT both exercise their responsibilities within the framework of Bahrain Economic Vision 2030. This is the national long-term development plan, launched in 2008, to diversify the economy away from its traditional reliance on fossil fuels. The roadmap outlines a strategy for growth in the country’s non-oil sector in particular, with tourism seen as a pivotal area to stimulate economic growth and facilitate job creation.
In response to the impact of Covid-19, Bahrain launched its Economic Recovery Plan in October 2021. This initiative included six sector strategies, including one for tourism. Known as the Tourism Strategy 2022-26, the details were announced in November 2021. The strategy provides a comprehensive framework for the industry’s development and has a central aim of diversification. This entails expanding and enhancing Bahrain’s tourism offering, showcasing the kingdom’s unique attractions, and sharing the cultural depth and the breadth of its entertainment options. Through these efforts, Bahrain seeks to widen its appeal to a more diverse group of visitors and strengthen its position as a premier tourist destination.
Channels
The strategy has identified four channels on which to base its efforts at diversification. First, a promotional campaign seeks to boost awareness of Bahrain’s tourism offering and elevate the kingdom’s global standing in the sector. Second, the plan focuses on increasing the tourism sector’s contribution to Bahrain’s GDP by aiming for growth in visitor numbers and revenue per tourist. Specific goals include reaching 14.1m arrivals by 2026, achieving an average daily visitor spend of BD74.8 ($198) and extending the average length of stay to 3.5 days. The sector’s contribution to GDP is targeted to reach 11.4% by 2026.
Market diversification is a third channel, with Bahrain looking to boost the numbers coming to the kingdom from emerging source markets in particular. Lastly, there is a broadening of the attractions on offer, with cultural, heritage, adventure and coastal tourism set as main areas for expansion. Moreover, the strategy mentions business tourism, media tourism and cinematography, medical tourism, sports and recreational tourism as key pillars of this approach.
Further initiatives under the strategy include developing the airline and cruise ship networks serving Bahrain, and easing visa and other arrival procedures. Increasing the number of hotel rooms and tourism projects is a priority, working in tandem with a larger number of tourism events, such as festivals, international sports and MICE, in the kingdom.
Prior to the launch of the new strategy, the previous sector plan, which covered the period from 2016-19, saw the sector’s contribution to GDP rise from less than 4% to around 7%. So far, the new strategy is reportedly enjoying similar success. Al Sairafi told BCCI and BTEA leaders in August 2023 that growth indicators had exceeded the targets set for the first years of operation. Indeed, official statistics for 2023 show that the number of visitors may well have already reached its end goal, with an accommodation rate of 3.4 nights and an average daily expenditure of BD74 ($196) – both numbers nearly at the 2026 targets.
Market Horizons
With diversification of markets a key goal of the strategy, Bahrain’s tourism players are being asked to look further afield than their traditional sources markets. Principle among those has long been neighbouring Saudi Arabia.
“Although tourism competition in the region is becoming increasingly stiff, government support has helped to carve out a niche market in the GCC, with Saudi Arabia being the key focus,” Mohammed Jaffar, chairman of Asia Jewellers, told OBG. “This support has been a key source of growth for the luxury market, as Saudi tourists, who are key premium shoppers, drive demand. They often prefer Bahrain for its cultural appeal and personalised offering.”
Shopping in Bahrain has become increasingly attractive since the introduction of value-added tax, with the rate set at 15% in Saudi Arabia and 10% in Bahrain starting from July 2020 and January 2022, respectively (see Tax chapter). Indeed, it is not only Saudis who list shopping among their top reasons for visiting Bahrain. A 2022 survey by the Bahrain Economic Development Board (Bahrain EDB) showed that out of the 9.9m visitors to the kingdom that year, approximately 6m stated that they had come for leisure, while over 2m said their main reason was shopping. Just under 1m came to spend time with family and relatives, with the remaining guests divided between business and other purposes.
Bahrain has been praised as an international wedding venue in recent years. As part of the 31st World Travel Awards announced in May 2024, the kingdom won the Middle East’s Leading Wedding Destination Award, with Exhibition World Bahrain recognised as the region’s leading large-scale wedding venue.
In terms of international arrivals, Saudi nationals lead the way. The most recent data from the Bahrain Information & eGovernment Authority for December 2023 shows that more than 1m Saudis visited Bahrain. The next-largest group consisted of other GCC countries, numbering 136,486. European visitors followed with 24,163, while Asian visitors totalled 9966. Additionally, there were 8910 visitors from the Americas, 931 from other Middle Eastern countries and 2878 representing various other nationalities.
Strategic Collaboration
The importance of the Saudi market to Bahrain, and vice versa, was further demonstrated in June 2023 with the signing of a memorandum of understanding (MoU) between the tourism ministers of both countries. The MoU establishes a framework for joint marketing of the two kingdoms, coordinating their offering and leveraging synergies between Saudi Arabia’s new and fast-growing tourism sector and Bahrain’s more established industry. This move highlights growing calls for a more joined-up approach to tourism amongst GCC countries – calls also made by Bahrain at the Arabian Travel Market 2024 in May of that year. A major step forward with this will be the launch of a unified GCC visa, which will enable visitors arriving in one country to visit all the other member states, as with the EU’s Schengen visa. The visa is expected to be available to visitors to Bahrain in early 2025.
Linking Up
Many Saudi visitors arrive over the King Fahd Causeway, a 25-km series of bridges and roadways over and through the shallow waters between Khobar in Saudi Arabia and Al Jasra in Bahrain. First opened during 1986, by 2019 some 382m travellers had used the causeway. Indeed, by 2019 around 88% of all visitors to Bahrain entered via this route, which was temporarily closed in 2020 due to Covid-19 restrictions. When the causeway reopened in May 2021 it featured an additional 10 lanes in the departure area, improving traffic flow.
Further expansion of the King Fahd Causeway is under way, as congestion remains an issue – evidenced by a record 136,498 people crossing in a single day in March 2023. Additionally, the new King Hamad Causeway is in the tendering phase. Once completed, this new causeway will provide both road and rail connections, linking Bahrain to the pan-GCC railway project. It is expected that the new causeway will be developed as a public-private partnership.
A second causeway is being designed to link Bahrain and Qatar. Known as the Qatar Bahrain Friendship Bridge, November 2023 saw leaders of the two GCC countries direct their respective planning authorities to come up with a completed plan for its construction. If built, the bridge would run 40 km from northern Qatar to Askar on Bahrain’s south-eastern coast. It is expected to reduce travel time between the two points from five hours to 30 minutes. The design will include flyovers 40 metres above sea level in order to accommodate passing ships.
In terms of aviation, BIA has undergone a substantial upgrade. The project, which cost $1.1bn, introduced a new terminal that was officially launched in July 2022. Although the project began in 2016 and was completed in 2020, its opening coincided with the Covid-19 pandemic. The new terminal can accommodate 14m passengers annually and features 104 counters, 24 self-check-in kiosks, 44 immigration gates, 22 e-Gates and 24 departure gates. Additionally, the terminal offers 3300 sq metres of duty-free space, numerous cafes and restaurants, a spa, a hotel and 5500 car parking spaces.
At the same time, Bahrain offers maritime arrival facilities. The kingdom’s Khalifa Bin Salman Port (KBSP) – operated by ATM Terminals Bahrain – is the main destination for cruise liners visiting the kingdom, with these ships typically journeying between GCC ports. The country is an increasingly popular destination. The October 2023-March 2024 season saw some 116,000 cruise passengers arrive at the port – a figure four times that of the October 2022-March 2023 season. The northern hemisphere winter is peak season for European and North American visitors to the Gulf, with seven different French, German, Norwegian, Swiss and US cruise lines stopping in Bahrain.
KBSP is collaborating with the Bahrain EDB and BTEA to boost this traffic. A step in this direction was the signing of an MoU between the maritime and tourism authorities of Bahrain, Abu Dhabi, Dubai and Oman in March 2024 to establish the Cruise Arabia alliance. This will see all four destinations working together to boost overall cruise traffic to the Gulf. KBSP expects to double the number of cruise passenger arrivals for the October 2024-March 2025 season.
Project Developments
As part of the Bahrain Economic Vision 2030, the Economic Recovery Plan and the new tourism strategy, several major tourism developments have been initiated. The objective is to increase the number of hotel rooms and provide the latest in resort facilities and amenities, building on the kingdom’s already extensive offering. In 2023 there were approximately 130 hotels and resorts in Bahrain across its 786.5 sq km of islands.
Recent openings include the Raffles Al Areen Palace Bahrain in December 2023, with 78 private villas and 120 rooms. This is the anchor hotel for the Areen master plan, a major development on approximately 2m sq metres of land in the southern region of Bahrain. It is comprised of 16 development clusters and includes commercial offices, retail space, restaurants and hotels, health and education facilities, and a range of residential communities.
Other recent openings include the 196-key Jumeirah Gulf of Bahrain Resort and Spa in November 2022 and the 112-home Four Seasons Private Residences Bahrain Bay – which extends the existing Four Seasons Hotel Bahrain Bay – and is scheduled to open in early 2025. The Qalali Coast Waterfront Project adds a further 100,000 sq metres of beachfront development on a coast that extends over 2 km on the eastern side of Muharraq island. In February 2024 the Mumtalakat real estate arm, Edamah, signed an agreement with the BTEA to manage and operate the Qalali project. This is scheduled to open to the public in the first quarter of 2024.
Another significant project is Bilaj Al Jazayer, also known as Tourist City, which is being spearheaded by Edamah. Situated in the western part of the kingdom, the first phase of this development features public beaches and a 1.2-km walkway. This phase will also see the addition of two major resorts: the Avani Bilaj Al Jazayer Bahrain Resort and the Tivoli Bilaj Al Jazayer Bahrain Resort. Construction of the essential infrastructure began in July 2023. Notably, the project has already garnered accolades, winning the International Property Awards for Best Mixed-Use Development in Arabia and Best Leisure Development in Bahrain. Alongside its recreational amenities, the development will encompass residential and commercial districts, further enhancing its appeal and functionality.
Elsewhere, the 30-storey, 97-room Conrad Bahrain Financial Harbour welcomed guests in March 2024, while in May 2024 the Flamingo Cottages opened, offering 25 villas with gardens and pools. Looking ahead, Kempinski Hotel and Residences Bahrain Harbour is scheduled for opening at the end of 2025. The new facility will feature 74 guest rooms on its upper floors as well as 186 Kempinski-branded residences.
Branching Out
A major focus for tourism development has been Hawar Island. As a wildlife sanctuary, any development must prioritise environmental preservation, leading to a focus on eco-tourism. The Mantis Bahrain Hawar Island Hotel and Resort partnership between Accor and Edamah exemplifies this approach. The 102-key property, including 24 overwater villas, a spa, a wellness centre and a Bear Grylls Survival Academy, implements sustainable practices, including recycling, and conserving water and energy. The resort is set to open in early 2025.
Bahrain is also moving forwards in the conference and exhibitions space, capitalising on the November 2022 opening of Exhibition World Bahrain (EWB). With some 95,000 sq metres of exhibition floor space, a grand hall with room for 4000 people, 10 further exhibition halls and 94 meeting rooms, it is the largest exhibition centre in the Middle East. It is owned by the BTEA and operated by ASM Global, a leading international venue management company. Located adjacent to the Bahrain International Circuit in Sakhir, it is part of a large-scale offering that includes the Formula 1 Bahrain Grand Prix and the Al Dana Amphitheatre. The latter is a 10,000-seat venue that opened in 2020.
EWB’s first year of operations was highly successful, hosting over 170 events with more than 500,000 local and international visitors. This put Bahrain back on the global MICE map, with the EWB helping the kingdom earn its highest ranking in a decade with the International Congress and Convention Association.
As the sector broadens its scope, the kingdom is investing in training and developing its human capital. A prime example is the Vatel Hotel and Tourism Business School, established in partnership with France’s Vatel, which opened in Jasra, located in the north-western part of the island, in 2018. By May 2024 the school announced that 77% of its inaugural class had secured job offers prior to graduation, highlighting the institution’s strong reputation and the demand for well-trained hotel staff both within Bahrain and across the wider GCC region.
Outlook
With the introduction of new hotels, improved transport links and a strong government commitment to grow the sector, Bahrain is set to play a more prominent role in the Gulf tourism market in the coming years. Having witnessed a robust recovery from the pandemic, the kingdom now offers a diverse range of visitor attractions, which will continue to expand with the rollout of ongoing projects.
Although the country faces fierce competition from well-established markets in the region such as Dubai and the emerging tourism industry in Saudi Arabia, Bahrain’s unique offering stands out. The kingdom provides a concentrated variety of tourist attractions, and its status as a regional travel and entertainment destination is an advantage. In contrast to its oil-and gas-rich neighbours, Bahrain has a stronger imperative towards diversification, making tourism a strategic focus. As a result, the country is well positioned to attract a growing number of tourists, business leaders and conference delegates in the years ahead.
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