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Dubai, United Arab Emirates – Insight Out Consultancy, a leading hospitality consultancy, renowned for its pioneering hospitality market insights, has once again partnered with Phocuswright, the world’s foremost authority on global travel research, to contribute to the annual Middle East Travel Market Report. Since the report's launch in 2012, Insight Out Consultancy has been instrumental in its development. The latest edition forecasts a remarkable 40% growth in the region’s travel sector with bookings surpassing $127 billion by 2027, driven by substantial investments in travel infrastructure and increasing consumer demand.
The report reaffirms that the Middle East travel market is on a clear upswing with a 13% year-over-year growth recorded in travel gross bookings in 2023, which is five times higher than the growth in GDP in the region. The UAE’s travel market remains a dominant force in the region recording a staggering $44.5 billion in gross bookings in 2023, a 12% surge from the previous year.
Li Hawkins, Managing Director of Insight Out Consultancy commented, “Our collaboration with Phocuswright continues to provide vital data and insights into the Middle East’s rapidly expanding hospitality and travel landscape. The sector is rapidly evolving particularly with the acceleration of digital technology and the increasing demand for experiential travel. With these significant transformations in the travel landscape in the region, comes higher expectations from today's visitors to the Middle East who seek more profound, meaningful engagements that showcase the rich history and diverse traditions of the region.”
With over 15 years of experience in the Middle East’s travel and hospitality industry, Insight Out Consultancy is backed by a team of specialised consultants who engage in primary data collection and executive interviews within the hospitality, travel, and tourism sectors. Their research answers critical industry questions and delivers insights that drive the sector’s evolution. The consultancy has assisted in producing in-depth, data-driven research for numerous private and public organisations, including Amadeus, Jumeirah, Seera, and various GCC tourism bodies.
The latest Phocuswright report thoroughly analyzes the Middle East travel market, including market sizing, future projections, distribution trends, and insights into key travel segments such as air travel, hotels, and car rentals. The report's focus regions include the UAE, KSA, Egypt, and Qatar, providing detailed examinations of these key markets.
Key Takeaways from the Report:
United Arab Emirates: In 2023, the UAE soared to new heights as the dominant force in the Middle East travel market, achieving a staggering $44.5 billion in gross bookings, a 12% surge from the previous year. This impressive growth was fuelled by strategic investments in airline routes, hotels, and attractions, underpinned by the nation's advanced tourism infrastructure. The hotel sector expanded significantly, with a 16% rise in bookings, driven by a diverse range of accommodations and increased inbound and domestic tourism. The aviation sector, led by giants like Emirates and Etihad, also saw robust revenue growth, solidifying the UAE's role as a global aviation hub. Online Travel Agencies (OTAs) gained traction, with bookings expected to rise further in 2024. The UAE's focus on innovation, sustainability, and diversification in tourism positions it for ongoing growth, despite challenges like fluctuating demand and heightened competition from Saudi Arabia and Qatar.
Saudi Arabia: Propelled by ambitious projects and strategic investments, Saudi Arabia’s travel sector experienced a remarkable surge in 2023, with gross bookings reaching an impressive $17 billion, reflecting a 16% year-over-year growth. This growth was driven by rising domestic travel demand and increased inbound tourism, spurred by major developments like the Red Sea Project, Neom City, and AlUla. The hospitality sector saw notable gains, with occupancy rates, average daily rates, and revenue per available room rising. Under its Vision 2030 initiative, Saudi Arabia is rapidly expanding its tourism infrastructure, including plans to triple its hotel room inventory by 2030 and significant investments in aviation, highlighted by the upcoming launch of Riyadh Air. The online travel market is also booming, capturing 48% of bookings in 2023, with further growth expected. This transformation is positioning Saudi Arabia as a premier global tourist destination, offering a wide range of experiences beyond its traditional religious tourism.
Qatar: Building on the global spotlight from the FIFA World Cup 2022, Qatar’s travel industry continued to climb in 2023, with gross bookings nearing $16 billion, an 8% increase from the previous year. The country capitalised on the momentum from hosting the FIFA World Cup 2022 and the strategic expansion of Qatar Airways to attract more visitors. The hotel sector diversified, offering a broader range of accommodations from luxury to budget, while car rentals became increasingly popular as travellers explored beyond Doha. Looking ahead, Qatar's tourism strategy focuses on diversifying offerings, developing cultural and ecotourism attractions, and leveraging technology to enhance travel experiences. Despite challenges like maintaining hotel occupancy during off-peak seasons, Qatar's commitment to innovation and infrastructure development ensures sustained growth.
Egypt: Surpassing expectations and setting new records, Egypt’s tourism industry flourished in 2023, drawing 14.9 million visitors and outpacing pre-pandemic revenue levels in Egyptian pounds. This success is credited to effective safety measures, strategic marketing, and a global surge in travel demand. Despite challenges such as currency devaluation, geopolitical tensions, and global economic fluctuations, Egypt's tourism sector remains resilient, with a 63% increase in gross bookings in local currency. The government’s ambitious plans, including expanding eco-friendly practices, diversifying accommodations, and enhancing infrastructure, aim to attract 30 million tourists by 2028.
Digital Maturity and Transformation: The digital revolution in the Middle East travel market reached a tipping point in 2023, with online bookings accounting for a remarkable 46% of total gross bookings. This growth was driven by increased adoption of customer-facing technologies by travel suppliers and rising demand from a tech-savvy customer base. Online travel agencies saw a 14% year-over-year increase in booking values, with hotels making up 55% of these bookings. Airlines and car rentals also experienced substantial growth in digital bookings, contributing to the ongoing digital transformation of the region's travel industry.
The full report, Phocuswright’s Middle East Travel Market Report 2023-2027, offers a deep dive into each of these trends and more, including statistical analysis, case studies, and actionable recommendations. It is available for purchase at https://www.phocuswright.com/Travel-Research/Market-Overview-Sizing/Middle-East-Travel-Market-Report-2023-to-2027.
About Insight Out Consultancy
Insight Out Consultancy is a holistic commercial consultancy that specialises in empowering hospitality, travel, and tourism brands to achieve optimal core commercial performance and heightened business efficiency. Established in 2008, the consultancy provides bespoke, data-driven solutions that assess the intricate interplay of processes, people, and systems.
Driven by a dynamic team of seasoned experts with a diverse wealth of regional and international experience, the consultancy is built on four distinct areas of capability: commercial solutions, learning and development, research, and go-to-market strategies and implementation. Insight Out Consultancy holds the distinction of being the sole team of hospitality consultants in the Middle East that offers all-encompassing commercial guidance.
Headquartered in Dubai, Insight Out Consultancy has serviced over 140 clients across the GCC and holds a remarkable track record of successfully delivering more than 400 projects.
For more information, visit https://insightout-me.com/en/
About Phocuswright
Phocuswright is the travel industry research authority on how travelers, suppliers and intermediaries connect. Independent, rigorous and unbiased, Phocuswright fosters smart strategic planning, tactical decision-making and organizational effectiveness.
To complement its primary research in North and Latin America, Europe and Asia, Phocuswright produces several high-profile conferences in the United States and Europe and partners with conferences around the world. Industry leaders and company analysts bring this intelligence to life by debating issues, sharing ideas and defining the ever-evolving reality of travel commerce.
Phocuswright also operates PhocusWire, a media service that covers the world of digital travel 365 days a year with a range of news, analysis, commentary and opinion from across the travel, tourism and hospitality sector. The company is headquartered in the United States with Europe and Asia Pacific operations and local analysts on five continents.
Phocuswright is a wholly owned subsidiary of Northstar Travel Group.
