GCC: The ultimate destination of global travellers and tourists The dynamic nature of global travel, particularly in the UAE and Saudi Arabia, is reshaping the region’s tourism landscape, mirroring transformations seen in the most dynamic travel destinations
T he Gulf Cooperation Council (GCC) travel & tourism industry is well on its way to an unprecedented upward trajectory. And one of the landmark achievements that can further fuel this phenomenal growth is the introduction of a unified tourist visa. This visa, already approved but set to launch between 2024 and 2025, will enable holders to explore all six GCC nations. Additionally, visitors would be able to prolong their stay in GCC countries beyond the initial 30-day period. The unified Gulf tourist visa is a project that will contribute to facilitating and streamlining the movement of residents and tourists between the six GCC countries and will undoubtedly have a positive impact on the economic and tourist sectors. The introduction of an ordinary GCC tourist visa by 2025 is set to simplify regional travel, potentially unlocking new levels of tourism and cultural exchange within the GCC. The dynamic nature of global travel, particularly in the UAE and Saudi Arabia, is reshaping the region’s tourism landscape, mirroring transformations seen in the most dynamic travel destinations. The GCC travel & tourism market is likely to grow at a compound annual growth rate (CAGR) of 17.54% during the forecast period of 2022-31. The market is likely to produce revenue worth of nearly $250 billion by the end of 2031. Higher expenditure by people on their international trips, followed by the rising international tourist departures to a different part of the world, and the growing number of online bookings for flights and travel are some of the major factors anticipated to drive the market growth during the forecast period. This growth is on the account of higher tourism activities for the purpose of leisure. The leisure segment is to grow at a CAGR of 17.28% over the forecast period. The UAE by the end of 2031 is estimated to garner a revenue of about $67,000 million, by growing at the CAGR of around 15% over the forecast period. Factors such as increased expenditure on outbound tourism by people of UAE is expected to boost the market growth in the region. Another report indicates that the GCC travel and tourism market size is projected to exhibit a CAGR of 15.8% during 2024-32. The increasing preferences for sustainable travel options such as eco-friendly accommodations and low-impact activities, rising inclination for studying in overseas countries, and the growing popularity of
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culinary shows and food-centric media represent some of the key factors driving the market. The UAE aims to achieve a growth in GDP of 7% and double the size of the economy to $3 trillion by 2030. According to data aggregator STR, the UAE generated the highest value of cumulative hospitality-related contracts in the GCC last year, followed by Saudi Arabia. The combined value of UAE and KSA projects accounted for more than 90% of all hospitality contracts awarded in the region in 2023. More than 200,000 pipeline rooms are currently under contract across the Middle East, in which the three most active cities are Dubai, Makkah and Doha. According to new research commissioned by Arabian Travel Market (ATM), Makkah and Doha are both expanding their hotel room inventory by 76%, followed by Riyadh, Medina and Muscat with 66%, 60% and 59% growth, respectively. In Dubai, rooms growth stands at 30%, which is still extraordinary, considering its existing base and following years of continuous hotel development – it is still more than double the global average. • The introduction of an ordinary GCC tourist visa by 2025 is set to simplify regional travel, potentially unlocking new levels of tourism and cultural exchange within the GCC • The GCC travel & tourism market is likely to grow at a compound annual growth rate of 17.54% during the forecast period of 2022-31. The market is likely to produce revenue worth of nearly $250 billion by the end of 2031 • The increasing preferences for sustainable travel options such as eco- friendly accommodations and low-impact activities, rising inclination for studying in overseas countries, and the growing popularity of culinary shows and food-centric media represent some of the key factors driving the market
34 Federation of GCC Chambers
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