In 2022 the Middle East witnessed the sharpest relative increase in international arrivals of any region in the world, solidifying its rebound from the disruption of the Covid-19 pandemic and further raising its profile as an increasingly attractive destination for inbound tourism. According to the UN World Tourism Organisation (UNWTO), in 2022 international arrivals in the Middle East recovered to 83% of levels seen prior to the onset of the Covid-19 pandemic, outperforming all other regions.
Road to Recovery
Dubai in particular saw a significant increase in international visitors in 2022, with 14.4m tourists visiting the emirate. That figure represented a 97% jump from the previous year’s 7.3m visitors, surpassing global and regional recovery levels. At 86% of pre-pandemic arrival levels that year, Dubai was emblematic of the tourism growth trajectory in the Gulf. The surge was due in part to sustained investment in tourism infrastructure, its hosting of Expo 2020 from October 2021 to March 2022, the emirate’s handling of the pandemic and effective overseas marketing efforts.
Tourism in GCC countries has gained significant momentum on the international stage, with the region promoting itself as a competitive leisure and entertainment destination. This trend has been catalysed by international events like the 2022 FIFA World Cup, which drew 2.5m visitors to the region, particularly benefitting Qatar, the UAE and Saudi Arabia. Gulf countries are also working together to boost cross-border cooperation in the travel, tourism and hospitality segments to create unique offerings that satisfy emerging consumer preferences and market trends. All six GCC member countries coordinate their investment and marketing strategies according to a mutually agreed tourism development agenda. These plans include existing and upcoming luxury hotels and resorts, heritage sites, and retail and entertainment offerings.
Regional Agreements
As the result of collaboration between federal and local authorities, national airlines and private institutions, a tourism strategy has been devised to market regional offerings, develop new platforms and raise service quality. In November 2022 the Gulf Tourism Strategy was adopted at the end of the sixth meeting of GCC tourism ministers in Al Ula governorate in Saudi Arabia. The strategy is a joint initiative among GCC members that outlines a roadmap for developing tourism in the region. The strategy, which was endorsed at the 43rd session of the Supreme Council of the GCC in December 2022 in Riyadh, highlights key objectives, including the diversification of existing offerings, the promotion of sustainable tourism practices and improvements in the quality of services. In addition, in November 2023 the interior ministers of the GCC unanimously approved a unified Gulf tourist visa that will allow visitors freedom of movement across the entire bloc for a specified period of time. The visa is expected to become available in 2024-25.
Several factors position Gulf countries as competitive providers of integrated tourism services. According to the 2023 Numbeo Safety Index, which measures the level of crime in a country, Qatar was the safest country in the world, followed by the UAE, while Oman and Bahrain ranked fifth and 10th, respectively. This high level of security has helped the GCC develop a reputation as a haven for tourists concerned about their personal safety in the post-pandemic environment, as well as a secure place for tourism investment. Similarly, geographic proximity not only makes the region easily accessible for key source markets in Europe, Asia and Africa, but also reduces the travel time and expense associated with long-haul flights.
Robust air connectivity, led by two of the world’s busiest airports in Dubai and Doha, is further strengthened by growing national flag carrier networks. According to a January 2023 report published by the Gulf Centre for Studies and Research, known by its English acronym CSRG ulf, the UAE and Qatar have the region’s largest national air fleets.
The Gulf Tourism Strategy recognises the importance of collaboration among GCC countries to capitalise on their competitive advantages, create a cohesive regional tourism vision and ensure that benefits are spread evenly across member countries. In tandem with national tourism strategies, the GCC seeks to secure a collective commitment from its members to develop and support a common vision that defines and delivers clear outcomes – including job creation and higher levels of contribution to GDP – to facilitate diversification.
Going Digital
As GCC governments look to implement a methodical approach to tourism, they have become increasingly aware of the crucial role that digital experiences play in every stage of a traveller’s journey. The pandemic further highlighted the importance of digital technologies in terms of enabling seamless and safer travel.
In line with the GCC strategy, in November 2022 the Gulf Tourism Platform was proposed as a digital gateway to provide tourists with a one-stop-shop for planning and booking their trips to the region. This platform will use digital technologies such as artificial intelligence and big data analytics to offer a range of services, including booking accommodations, flights and tours, as well as providing practical tips and information on tourist attractions and activities, all of which aim to facilitate and enhance visitors’ travel experiences. In a similar vein, in November 2020 the Gulf Tourism Capital programme was introduced during the fifth annual meeting of the tourism ministers to highlight, promote and attract investment in new projects and emerging tourism sites. The inaugural Gulf Tourism Capital title was awarded to Ras Al Khaimah in the UAE in 2021, in recognition of its growing popularity as an adventure destination and its effective response to the pandemic. In 2020 Ras Al Khaimah became the first destination in the Middle East to obtain a safe travels stamp from the World Travel & Tourism Council (WTTC), a designation given for the implementation of hygiene protocols in response to the pandemic. In November 2022 the Gulf Tourism Capital programme and nomination guide was reaffirmed during a meeting of GCC tourism ministers.
Individual Strengths
According to the UNWTO, more than 900m people travelled internationally in 2022, indicating that the tourism sector was on track to reach 65% of pre-pandemic levels. In 2022 the GCC saw 48m international arrivals, with the UAE emerging as the top tourist destination in the region, receiving 22.7m visitors. Saudi Arabia welcomed 16.6m people, while other top destinations in the Gulf that year included Bahrain (3.7m), Qatar (2.6m) and Oman (2.9m).
In recent years the sector has played an increasingly large role in Gulf countries due to investment in key areas. In 2021 Qatar ranked highest in the region in terms of the economic contribution of tourism revenue, with the sector contributing 10.3% of GDP. Bahrain was second, with an 8.2% share, followed by Saudi Arabia (6.5%) and the UAE (6.4%). The smallest tourism-related GDP contributions in 2021 were in Kuwait and Oman, at 4.3% and 3.5%, respectively.
In 2019 travel and tourism revenue in the GCC amounted to $245bn, or approximately 8.6% of regional GDP, according to the WTTC’s 2019 Economic Impact Report. Out of the total tourism revenue reported in the region, 83% of spending was the result of leisure travel, with business travel comprising 17%. Some 63% of spending came from international visitors, while 37% was attributed to domestic tourists. Over the years the region’s performance has continued to improve at a steady rate.
Sector Strategies
Each GCC country has introduced a national tourism strategy to attract investment and increase visitor numbers. Saudi Arabia’s National Tourism Strategy, which launched in 2019 as part of its Vision 2030 agenda, aims to welcome 100m tourists annually by 2030, create 1.6m jobs and raise the sector’s GDP contribution to 10%, compared to 4% at the end of 2022. Having started to issue visas to foreign tourists in 2019, the Kingdom is making a substantial investment in the country’s infrastructure, investing $133bn in transport projects to improve connectivity. Meanwhile, the Public Investment Fund, Saudi Arabia’s sovereign wealth fund, is spearheading a number of mega-projects, including luxury resorts along the Red Sea and the $500bn NEOM giga-project.
Although already a top destination for travellers in the GCC, the UAE has sought to future-proof its tourism sector with the launch of the UAE Tourism Strategy 2031. The strategy is part of Projects of the 50, a half-century programme to secure the country’s competitiveness in the high-value industries of the future. With Dubai targeting 25m visitors annually by 2025 and Abu Dhabi 30m by 2030, the strategy seeks to raise the tourism sector’s contribution to GDP to $122.6bn, generating an average annual increase of $7.4bn; attracting up to $27.2bn in tourism investment; and welcoming 40m hotel guests across the country by 2031. The UAE has also launched 25 projects that look to strengthen its national tourism ecosystem by developing specialised projects, building capabilities and increasing investment in all related sectors.
Building Awareness
Oman’s tourism strategy focuses on luxury, nature and adventure offerings, with the aim of welcoming 11.7m overseas visitors annually by 2040, up from 2.9m in 2022. By hosting Global Travel Week Middle East in March 2022, the sultanate’s Ministry of Heritage and Tourism sought to promote Oman as a specialised tourist destination – with an emphasis on luxury products and adventure offerings – to key source markets, particularly in Europe and India.
In March 2022 the Oman Tourism Development Company announced a deal with Dubai’s Diamond Developers for the development of the first phase of the Yiti Integrated Tourism Development, a largescale sustainable project. This partnership underscores the aim to foster cross-border collaboration in tourism development efforts. Similarly, Bahrain is rolling out its Tourism Strategy 2022-26, which looks to attract 14.1m tourists per year, increase average daily visitor expenditure to $198 and raise tourists’ average stay to 3.5 days by 2026. In 2022 Oman’s tourism revenue hit $4bn and arrivals reached 9.9m, the latter of which surpassed the 8.3m target.
Building on the $220bn that was invested in a large portfolio of hotels and entertainment infrastructure as part of the country’s hosting of the FIFA World Cup in November-December 2022, Qatar has launched a global multimedia promotional campaign targeting 17 source markets to raise awareness about its attractions. The country has also set a target of increasing the contribution of the tourism sector to GDP to 12% by 2030 and attracting 6m visitors annually. To this end, Qatar launched a two-year World Class Chefs project, hosting chefs from around the world to nurture the local culinary scene and explore investment opportunities.
Albeit a smaller player, Kuwait’s Touristic Enterprises Company, the government-owned agency that is responsible for developing tourism in the country, announced redevelopment plans for 11 projects in 2021, ranging from waterfront marinas to recreational parks, following a capital increase approval of KD250m ($822.8m) by the Kuwait Investment Authority. These activities are anticipated to drive more tourism to the region, create more employment opportunities in the sector and boost the country’s economy.
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