Published on : Tuesday, May 15, 2018
The UAE and Saudi Arabia are hoped to expand at a compound yearly growth rate (CAGR) of 5 percent in the coming 10 years. At present, the UAE and Saudi Arabia account for 50 percent of the tourism market of the MENA region.
The GCC travel and tourism industry, at present surpasses the global tourism indicators regarding growth and spending. The contribution of tourism in projected CAGR to GDP is 5 percent for the GCC, in comparison to 3.8 percent worldwide. Moreover, growth in leisure and business spending for the coming 10 years is anticipated to grow at a yearly rate of 4.6 percent and 5.4 percent respectively, compared to the averages of 4.1 percent and 3.2 percent worldwide.
The main regional industry motivators are the leisure and religious tourism sectors.
Approximately, the leisure tourism churned and contributed $115 billion to the region with Dubai drawing 15 million visitors last year and being positioned as the sixth most visited world cities. UAE is anticipated to account for 90 percent of leisure tourism in the area following the opening of multiple leisure attractions. Also, the MENA region has one of the highest demands related to religious tourism because of its holy places. Saudi Arabia lures over millions of pilgrims every year for Hajj & Umrah journeys.
Furthermore, medical and business tourism are the next best things in the region, with the Middle East currently considered one of the fastest growing markets for these segments.