Tourism in the Gulf Region Surges: Industry Reaches $247 Billion, Projected to Skyrocket to $400 Billion by 2034
The Gulf's travel and tourism sector is on a steady path of expansion, according to the latest figures released by the Statistical Centre for the Cooperation Council for the Arab Countries of the Gulf (GCC-Stat).
The sector's growth is evident not only in the influx of international tourists but also in the surge of intra-GCC travel. In 2023, 26.5% of all international tourists arriving in the GCC were from within the region, highlighting the strength of domestic and regional tourism in the Gulf.
The industry across the Gulf region has experienced a significant leap in 2024. The Gulf's tourism sector continues to show signs of a robust and steady expansion, with the average annual growth rate for the sector over the next decade forecasted to exceed 4.2%.
By 2024, the Gulf's travel and tourism sector contributed approximately 11.4% to the region's GDP, amounting to US$247.1 billion. This contribution represents a 31.9% growth in sectoral contribution compared to pre-pandemic levels in 2019.
The number of tourists moving between Gulf countries grew at an average annual rate of 41.5% from 2019 to 2023, underscoring the sector's current success. A key factor in this growth is the significant leap in intra-GCC travel.
The Gulf's tourism sector has a strategic focus on investments in infrastructure, hospitality, and travel experiences for both regional and international visitors. This strategic approach, coupled with the sector's robust rebound and steady expansion, positions the Gulf as a key player in the global travel and tourism industry.
The outlook for the Gulf's travel and tourism sector remains promising. Projections indicate that by 2034, it could make up 13.3% of the GCC's GDP. While GCC-Stat's direct projection number for the Gulf’s travel and tourism GDP contribution by 2034 is not explicitly stated, the broader regional trend indicates strong growth aligned with the global sector’s expansion.
Asia's direct travel and tourism GDP contribution is expected to surpass 7% by 2034, which would include significant contributions from the GCC countries. According to a comprehensive report by the World Economic Forum (WEF) in partnership with Kearney and the Saudi Ministry of Tourism, the global travel and tourism industry is expected to contribute about $16 trillion to global GDP by 2034, representing more than 11% of the world economy.
Saudi Arabia, for instance, has been a standout performer in the Gulf's travel and tourism sector. The country saw a 70% increase in inbound tourists between 2019 and 2024 and is making large investments in tourism infrastructure to support this growth.
In summary, the Gulf's travel and tourism sector is clearly expected to be a major and rapidly expanding part of the economy, contributing to a growing share of regional GDP consistent with the global $16 trillion forecast for travel and tourism by 2034. The region's rising prominence as a global tourism hub is reflected in these figures.
Investments in the Gulf's travel and tourism sector are focusing on infrastructure, hospitality, and travel experiences, aiming to attract both regional and international visitors.
The growth in the Gulf's tourism sector, as suggested by the increasing domestic and regional travel, positions it as a key player in the global travel and tourism industry, expected to contribute over 11% to the world economy by 2034.
