Hospitality consultancy Insight Out and global travel research firm Phocuswright presented the 2024 edition of the annual Middle East Travel Market Report.

Based on findings, it is possible that the upward swing of the travel sector in the Middle East will continue. Growth is forecast to rise by around 40 percent well into 2027, surging beyond US $127 billion in bookings. Such growth is propelled jointly by digital transformation and infrastructure investments

In general, the Middle Eastern travel market saw year-over-year growth of around 13 percent as recorded in travel gross bookings in 2023. This is five times higher than the average growth in terms of gross domestic product (GDP) in the region. 

The United Arab Emirates (UAE), in particular, remains a dominant force in the region as it registered $44.5 billion in total gross bookings in 2023, a 12 percent surge from the previous year.

The UAE in focus

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 percent 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 percent 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) likewise 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 Egypt, Qatar, and Saudi Arabia.

The Middle East goes digital

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. 

OTAs saw a 14 percent year-over-year increase in booking values, with hotels making up 55 percent 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.