Bahrain’s Tourism Strategy 2022-26 aims to diversify the country’s economic portfolio and increase the sector’s contribution to GDP. Key targets of the strategy include attracting 14.1m tourists by 2026 and increasing average visitor expenditure and length of stay. The plan focuses on facilitating entry, developing tourist attractions, marketing and promoting tourism, and improving accommodation standards and lodging options. The strategy also emphasises the importance of national tourism projects and highlights the role of travel agencies in attracting more visitors.
Foundational Pillars
Bahrain’s tourism strategy is built upon seven foundational pillars, each aiming to enhance diverse aspects of its appeal to global visitors. The first pillar focuses on marine and waterfront attractions, leveraging Bahrain’s geographical advantage as an island. The second pillar seeks to position Bahrain as a competitive destination for meetings, incentives, conferences and exhibitions (MICE) and business tourism, capitalising on its strategic location and robust infrastructure. With a rich historical and cultural legacy, the third pillar is dedicated to promoting this heritage to the world. The fourth pillar, sports and recreation, and the fifth pillar, leisure and entertainment, are focused on attracting tourists seeking exciting and active experiences. The sixth pillar, media and film, is geared towards harnessing the power of storytelling and visual culture to enhance Bahrain’s global image. Lastly, the seventh pillar, medical and wellness tourism, reflects Bahrain’s commitment to promoting health and well-being among visitors.
Figures In Context
Bahrain’s travel and tourism sector demonstrates significant growth potential, particularly in its direct and total contributions to GDP and employment. Although the absolute numbers are smaller than those of the Middle East, the relative growth rates, especially in direct GDP and employment contributions, highlight the importance of Bahrain’s tourism sector. According to figures from the World Travel & Tourism Council (WTTC), the industry’s direct contribution to the kingdom’s GDP is expected to grow from just over $2.3bn in 2024, representing 5.3% of total forecast GDP, to almost $3.1bn by 2034, or 6.4% of total GDP. This reflects a compound annual growth rate (CAGR) of 2.5%. In comparison, the direct contribution of the travel and tourism sector to the Middle East’s GDP is expected to grow from $178.3bn in 2024 – accounting for 2.6% of total anticipated GDP – to $289.7bn by 2034, which is 3% of total forecast GDP, with a CAGR of 4%.
Similarly, the travel and tourism sector’s total contribution to Bahrain’s GDP – factoring in direct and indirect impacts – is projected to increase from $5.9bn in 2024, or 13.4% of total GDP, to $7.7bn by 2034, or 16% of total GDP, with a CAGR of 2.5%. The corresponding figure for the Middle East is expected to rise from $459.9bin in 2024 – 6.7% of total projected GDP – to 743.6bn by 2034, or 7.8% of total GDP, reflecting a CAGR of 3.9%.
Both Bahrain and the Middle East rely heavily on foreign visitor expenditure – or, visitor exports. For Bahrain, visitor exports are projected by the WTTC to contribute 12.6% of total exports in 2024, increasing to 16.5% by 2034. In the Middle East, these figures are 10.7% and 13.4%, respectively. This suggests a strong dependency on tourism for foreign exchange earnings in Bahrain and the wider region.
Capital investment in Bahrain’s travel and tourism sector is projected by the WTTC to increase by 14.5% in 2024 and see a 5% CAGR up to 2034. This aligns with the Middle East, which shows a 15% growth in 2024 and a 4.7% CAGR by 2034. This indicates a robust trend of increasing investment aimed at developing tourism infrastructure and facilities.
The contribution of travel and tourism to employment is notable. In Bahrain, direct employment in the sector is projected by the WTTC to grow from 6% of total employment in 2024 to 8.2% by 2034. Similarly, in the Middle East, the direct contribution of tourism is projected to grow from 3.9% to 4.5% over the same period. This underscores the sector’s importance in creating employment and its role in supporting broader economic stability.
Towards 2026 Goals
Under its tourism strategy, Bahrain aims to attract global visitors, particularly from China, Germany, India and the UK, by offering unique experiences, preserving heritage sites and collaborating with neighbouring GCC countries. To this end, the kingdom is building upon opportunities to develop new destinations, strengthen the reputation of Bahrain as a host of cultural and sporting events and raise the visibility of the country. Additionally, measures have been introduced to increase the fiscal contribution of the sector.
Major tourism projects in development include the Bahrain Bay Beach project and Qalali Coast waterfront project, together with work to open a luxury eco-tourism resort on the UNESCO-recognised Hawar Islands by France-based hospitality giant Accor. Additionally, the country is building on its successes in the organisation of cultural and sports events. The last edition of the Celebrate Bahrain season festival drew over 100,000 visitors, and the final day of the 2024 Formula 1 Gulf Air Bahrain Grand Prix – the kingdom’s 20th anniversary race – achieved a record sell-out with 37,000 spectators.
Regional and international events are also set to boost numbers in 2024, with Manama having been designated the 2024 Capital of GCC Tourism and the upcoming celebration of the 9th UNWTO World Forum on Gastronomy Tourism. Lastly, Bahrain has carved for itself a strong position in specific niches, such as wedding events. The kingdom has been recognised as the Middle East’s Leading Wedding Destination 2024, and Exhibition World Bahrain has won the Middle East’s Leading Large-Scale Wedding Venue 2024 award at the 31st World Travel Awards. This is set to consolidate the profile of Bahrain as a destination in the MICE industry.
Recent developments highlight efforts at increasing the visibility of the kingdom’s offerings and further improving connectivity. For example, Singapore-based travel platform Wego and the Bahrain Tourism and Exhibitions Authority have formed a strategic alliance to promote Bahrain as a top global destination. Through joint marketing efforts, Wego will highlight Bahrain’s main attractions and offer exclusive deals. Moreover, Gulf Air, the national carrier of Bahrain, has launched direct flights to Guangzhou and Shanghai, coinciding with the recent state visit of King Hamad bin Isa Al Khalifa to China and the 35th anniversary of the establishment of diplomatic relations between the two countries.
The country’s leadership understands that regional cooperation will be critical in drawing increased tourism interest. For example, Bahrain and Saudi Arabia signed a memorandum of understanding in March 2024 that seeks to position both countries as a single regional and global tourism destination. By tapping into Saudi Arabia’s leading position in religious tourism and its ongoing efforts at developing its offering, the agreement is expected to boost the number of Gulf Air customers and create other synergies.
With the increased weight of tourism in national GDP, authorities are advancing policies to ensure that the sector deepens its contribution to fiscal accounts. Effective as of May 1, 2024, the Bahrain Ministry of Tourism has implemented a new tax of BD3 ($7.96) per room, per night for hotel accommodation, in an effort to standardise additional costs associated with hotel stays and enhance transparency for travellers planning visits to Bahrain. Travel agencies and airlines have been instructed to include this tax in room rates. The ministry expects an annual revenue increase of up to BD3m ($8m) with a 40% room occupancy rate.
Prospects
Bahrain’s tourism strategy for 2022-2026 presents a comprehensive roadmap for the development of a diverse, robust and resilient sector. Its seven pillars aim to tap into the distinct strengths of the country, from its rich historical and cultural heritage to its advantageous geographical location. The plan to attract 14.1m tourists by 2026, coupled with initiatives to increase average visitor spending and length of stay, demonstrates a strong commitment towards enhancing Bahrain’s competitiveness in the global tourism market.
Through significant capital investment, collaboration with regional partners, and a targeted focus on niche markets such as MICE and medical tourism, Bahrain is poised for substantial growth in its tourism sector. These efforts are designed to enhance Bahrain’s competitive edge in the global tourism market. The realisation of these goals will not only lead to a more diversified economy, but also create new employment opportunities. This, in turn, will further solidify the role of tourism in ensuring Bahrain’s economic stability and fostering sustained growth.
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