Tourism Industry Flourishes in the Gulf: Sector Achieves $247 Billion, Predicted to Skyrocket to $381 Billion by 2034
Gulf's Travel and Tourism Sector Poised for Strong Growth
The travel and tourism sector in the Gulf region is projected to experience strong growth from 2024 to 2034, driven by significant government initiatives, investments in infrastructure, and programs aimed at economic diversification and sustainability.
The Gulf's tourism sector is already making a mark on a global scale, with its growth outpacing the international average. The strategic investments in the region's infrastructure, hospitality, and travel experiences are tailored for both regional and international visitors.
Key points supporting this trend include the Awaza Program of Action (2024–2034), a strategic roadmap focused on enhancing tourism capabilities in Gulf countries such as Qatar. This plan supports sustainable development and economic diversification, crucial for long-term sector growth.
GCC countries, including Saudi Arabia and the UAE, are actively pursuing national visions, like Saudi Vision 2030, which heavily emphasize tourism sector expansion as part of their broader economic transformation strategies.
The development of cultural hubs, entertainment festivals, and family-oriented attractions are contributing to increased visitor numbers and diversified tourist experiences in the region, signaling demand growth in both inbound and domestic tourism.
Public-private partnerships (PPPs) and digital platforms are being launched to improve collaboration and investment flows into tourism infrastructure, which will facilitate further sector expansion and sustainability objectives.
The growth in intra-GCC travel reflects the success of the Gulf's strategic approach to tourism development. In 2023, 26.5% of all international tourists arriving in the GCC were from within the region. This strong domestic and regional tourism underscores the success of the Gulf's tourism sector.
The outlook for the Gulf's travel and tourism sector remains promising. By 2034, it could make up 13.3% of the GCC's GDP - an estimated $371.2 billion. This represents a significant increase in the sector's contribution to the region's economy.
Globally, the travel and tourism sector accounted for 2.2% of total GDP in 2024. However, the Gulf's sectoral contribution represents a 31.9% growth compared to pre-pandemic levels in 2019. The average annual growth rate for the Gulf's travel and tourism sector over the next decade is forecasted to exceed 4.2%.
These figures, released by the Statistical Centre for the Cooperation Council for the Arab Countries of the Gulf (GCC-Stat), suggest a growing trend of tourists moving between Gulf countries, contributing to the Gulf's status as a global tourism hub.
References: [1] World Travel & Tourism Council (WTTC) - Gulf States Tourism Outlook 2024-2034 [3] Gulf Cooperation Council (GCC) - Tourism Strategy 2030
Tourism investment in the Gulf region is expected to rise significantly due to the Awaza Program of Action (2024-2034), which targets the expansion of tourism capabilities and economic diversification. The lifestyle experiences offered in the Gulf, combined with increased travel opportunities, are attracting both regional and international tourists.
The strategic focus on cultural hubs, entertainment festivals, and family-oriented attractions in the Gulf region is not only boosting visitor numbers but also diversifying tourist experiences, which could attract further travel and lifestyle-oriented investments in the future.
