Ask Skift: What Are the Trends in Middle East Travel?

Skift Take

The travel industry in the Middle East has seen enormous changes in recent years, and here are some trends shaping the sector in the region.

Rashaad Jorden

The third annual Skift Global Forum East will bring several travel executives to Dubai this week to discuss the state of the industry in the region. What are the major trends in the Middle East’s travel industry?

We asked our answer engine Ask Skift 2.0 that question. The AI chatbot used information that’s appeared in our past news coverage, and we also did additional reporting on the subject.

What Ask Skift Said:

The Middle East travel industry is experiencing several significant trends as it navigates both opportunities and challenges in 2024. Here are some of the major trends shaping the industry:

Dubai’s Continued Evolution: Dubai remains a travel powerhouse with its world-class airline, Emirates, and a plethora of luxury hotels. The city is focusing on innovation to maintain its leading position in the global tourism market. The future direction for Dubai involves exploring new growth avenues and staying ahead amidst rapid changes in the global travel landscape.

Luxury Travel Transformation: The luxury travel market in the Middle East is evolving beyond traditional offerings. High-spending travelers are seeking unique and trendy experiences, prompting hotels and resorts to innovate their luxury offerings. This involves incorporating modern design and exclusive experiences to attract affluent visitors.

India’s Tourism Boom: The Middle East, particularly Dubai, has strong tourism ties with India. As India’s outbound travel market continues to grow, Middle Eastern countries are positioning themselves to capture a larger share of Indian tourists. Airlines and hospitality sectors are adapting to cater to this burgeoning market.

Entertainment Sector Expansion: The entertainment industry in the UAE and broader Middle East region is rapidly transforming with investments in party hotels, Formula 1 tracks, and unique attractions like the Abu Dhabi Sphere. This sector is becoming a key driver of tourism, attracting visitors looking for diverse and entertaining experiences.

Regional Stability and Resilience: Despite geopolitical tensions and conflicts in the wider Middle East, countries like Jordan are working to maintain and grow their tourism sectors. This involves agile strategies to ensure that tourism remains a viable economic contributor amidst regional challenges.

These trends highlight the dynamic nature of the Middle East travel industry, which is leveraging its strengths in luxury, innovation, and strategic market positioning to navigate a complex and evolving global tourism environment.

What Else You Need to Know

The Growth of Short-Term Rentals: Skift listed the impending short-term rental boom in the Middle East as one of its 2024 Megatrends.

Demand for short-term rentals is surging in the United Arab Emirates. Ramjee Iyer, chair of real estate development company Acube Developments, attributed that growing interest to the UAE’s status as a global travel hub.

Americans in particular are driving demand for short-term rentals in the country. A report from Dubai-based property management company AirDXB found 12% of the guests at its properties in the third quarter of 2024 were American, making it the second-largest group.

Collaborations Among Destinations in the Region: Authorities in the Gulf Cooperation Council — an organization made up of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE — have unveiled plans for a single tourist visa that would enable travelers to visit each of the six countries in the union.

Skift reported in May that tourism officials in the six countries are aligning on packages to sell to travelers. Abdulla bin Touq Al Marri, the UAE’s Minister of Economy, has said the visa will include monthlong “grand packages.”

Saudi Tourism Authority CEO Fahd Hamidaddin has called on the region’s countries to work together to help lure the likes of Taylor Swift.

Music Tourism: Even if Swift hasn’t performed in the Middle East, the region — in particular, the UAE — has seen visits by other star musical acts like Coldplay drive up hotel rates. Data collected by online travel platform EaseMyTrip revealed recent high-profile concerts in the UAE are responsible for a 70% increase in flight rates and a roughly fivefold jump in some hotel rates.

Destinations in the region have also gotten a tourism boost from hosting music festivals. Untold Dubai, which is supported by the emirate’s Department of Economy and Tourism, held its first edition this February. Edy Chereji, co-founder of Untold Universe, said the inaugural edition of Untold Dubai attracted 185,000 fans, 40% of whom came to the UAE to attend the four-day event.

Emphasis on Sports Tourism: Destinations across the region are tapping into major sporting events as a vehicle to boost visitor numbers and improve tourism infrastructure. Saudi Arabia submitted a bid to host the FIFA World Cup in 2034 earlier this year, and the kingdom plans to open more than 185,000 additional hotel rooms by that year.

The Saudi government has said one of the goals of Vision 2030, which includes making tourism an economic pillar, is to establish the country as a regional hub for major sporting events.

Qatar especially has benefited from sports tourism. The small Gulf State received a visitor boost in large part due to the Asian soccer championships held in January and February of this year — a 28% surge in visitor arrivals in the first half of 2024 from the same period the previous year.

The country is looking at hosting other sporting events — including rubgy’s Nations Championship — to help increase visitor numbers. “One of the important components of Qatar Tourism’s strategy is focusing on sport as a tourism angle,” said the agency’s Shared Services Director Omar Abdulrahman Al Jaber.

And the Abu Dhabi Department of Culture and Tourism is partnering with the Ultimate Fighting Championship to bring a numbered event including at least one title fight to the Emirate each year until 2028.