The GCC outbound tourism market mainly comprises tourists traveling from GCC countries including Saudi Arabia, UAE, Kuwait, Oman, Bahrain and Qatar to international destinations for holidays, leisure and business purposes.
The major products include travel, lodging, dining and shopping among others. Factors such as increasing disposable income, growing expatriate population and developing tourism infrastructure have boosted the GCC Outbound Tourism market Demand. Furthermore, governments in GCC countries are taking initiatives to diversify their economies and reduce dependence on oil, due to which focus is being shifted to develop tourism sector.
The Global GCC Outbound Tourism Market is estimated to be valued at USD 75.89 billion in 2024 and is expected to exhibit a CAGR of 7.7% over the forecast period 2024-2031.
Key Takeaways
Key players operating in the GCC outbound tourism are Expedia Group, Priceline Group (Booking Holdings), Trip.com Group, Ctrip.com International and TUI Group.
The growing demand for adventure, medical and niche tourism from GCC travellers is promoting the growth of the market. The changing consumer behavior and growing exposure to global cultures through social media and internet is also driving the market.
Technological advancements in travel portals, mobile applications for bookings, ease of online payments are enabling travellers to book and customize their travel as per their preferences easily, thus supporting the market growth.
Market Trends
Growing medical tourism from GCC countries mainly to destinations like India, Thailand and Turkey is one of the key trends being witnessed in the market. Availability of advanced medical facilities at affordable costs and growing healthcare infrastructure is attracting patients from GCC.
Secondly, increasing focus of tourists from GCC on niche or experiential tourism involving activities like culinary travels, wildlife experiences is gaining popularity. This helps in exploring new destinations and cultures in an engaging manner.
Market Opportunities
Rise of sustainable or green tourism is offering new opportunities to destinations as well as tour operators. Growing health concerns and awareness about reducing carbon footprint will drive the demand for sustainable travel options from GCC tourists in the coming years.
Secondly, blended travel or hybrid travel involving workation and bleisure (business+leisure) is gaining traction as the new trend. This allows working remotely from new destinations and combines business and vacation.
The COVID-19 pandemic has severely impacted the GCC Outbound Tourism Market. The travel restrictions and lockdowns imposed by various countries aimed at containing the spread of the virus brought international tourism to a standstill. The outbound trips from GCC countries dropped sharply as travelling became nearly impossible. The pre-COVID scenario saw robust growth in the market with the GCC tourists preferring international destinations over domestic locations. However, the pandemic changed everything as travel demand evaporated almost completely.
The short term future of the market remains uncertain as new variants continue to emerge. Even as restrictions are being gradually lifted in 2022, full recovery is not expected anytime soon given the continued threat of the virus. Social distancing norms and safety concerns will keep some potential travelers away. The hospitality industry worldwide is working on boosting safety measures and introducing flexible booking policies to regain traveler confidence. Digital health passes and vaccination drives are also playing a key role in restarting cross border tourism.
For long term growth, more focus needs to be given to developing domestic tourism within GCC countries. Collaboration between private and public sectors is required to promote local destinations and offerings. Developing unique travel experiences catering to different visitor segments can boost domestic visits. The countries also need to fast track their vaccination programs to enable frictionless international travel once the pandemic is contained on a larger scale. Regional air travel bubbles and coordinated border control policies will help revive outbound travel from GCC in a phased manner.
In terms of value, the Middle East and North Africa region received the largest share of GCC outbound tourists prior to the pandemic. Proximity and cultural similarities made countries like Egypt, Turkey and UAE top destination choices. However, with travel coming to a halt, the Asia Pacific region is expected to witness the fastest recovery and growth in the post-COVID period for GCC outbound tourism.
Several factors make the Asia Pacific region well-placed to grab a bigger share of GCC travelers. Countries like Malaysia, Thailand, Indonesia, India and China have proved their resourcefulness in containing the virus through measures like aggressive testing and localized lockdowns. Their gradual reopening focused on tourism is restoring traveler confidence from the GCC. Also, the emergence of new sources of leisure and entertainment in Asian destinations will attract GCC visitors looking for unique post-pandemic experiences.
Furthermore, the Asia Pacific governments have introduced relaxed visa norms, longer pre-approved stay periods and attractive air connectivity options for GCC nationality holders to promote tourism. Aggressive marketing campaigns highlighting safety are also reviving interest in Asian destinations. As international travel resumes, the Asia Pacific region will see strong pent up demand and growth momentum from GCC travelers, outpacing recovery in traditional favored destinations for the near future.
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