The Middle East is undergoing a dramatic transformation, and its travel and tourism sector is leading the charge. A recent report by Collinson International highlights the remarkable growth in this region, with the United Arab Emirates (UAE) and the Kingdom of Saudi Arabia (KSA) emerging as key players.
The UAE, ranked sixth globally for international tourism revenue, continues to solidify its position as a prime destination for global travelers. Meanwhile, Saudi Arabia’s Vision 2030 initiative is driving its tourism ambitions forward with groundbreaking projects like AlUla and the Red Sea Project, positioning itself as a major tourism hub.
In 2023, the region’s travel and tourism industry saw a staggering growth of over 25%, reaching nearly $460 billion. Saudi Arabia, in particular, set new records with a 32% growth rate, contributing SAR 444.3 billion to its economy, accounting for 11.5% of its GDP. The Kingdom welcomed over 100 million visitors in 2023, surpassing its 2030 target, and this momentum is expected to continue into 2024.
Elevating the Travel Experience
With tourist numbers skyrocketing, the need to enhance the airport experience to meet diverse traveler needs is crucial. The Collinson report reveals that nearly half of UAE consumers consider travel-related perks, such as airport lounge access, as key factors when choosing payment cards. Many travelers prefer bringing a guest along to enjoy amenities like dining, quiet spaces, and even sleeping pods available at major airports such as Dubai International (DXB).
Emerging Traveler Preferences
A YouGov study sheds light on evolving traveler preferences, revealing that 61% of UAE and 62% of KSA residents seek hyper-personalized and exclusive travel experiences. This emphasizes the growing demand for tailored rewards and benefits. The trend of ‘slow holidays’ is also gaining traction, with 82% of UAE and 77% of KSA travelers opting to stay longer in one place to immerse themselves in local culture.
Solo travel is experiencing a surge in popularity, with 75% of UAE residents having taken a solo trip in the past year and 61% planning one within the next three years. Sustainability is also becoming a key consideration, with 45% of UAE and 42% of KSA travelers factoring in the environmental impact of their journeys on most or every trip.
Looking Ahead: The Future of Tourism in UAE and KSA
The tourism landscape in the UAE and Saudi Arabia is poised for continued growth and innovation. Saudi Arabia’s unprecedented tourism expansion highlights its rising influence, while UAE travelers demonstrate a strong preference for personalized rewards and eco-conscious travel. As traveler expectations evolve, the industry must adapt by offering enhanced loyalty programs and tailored experiences to stay ahead in this rapidly changing market.
