In 2024, there were significant developments in the travel industry in the Middle East. Sphere Entertainment announced a location in Abu Dhabi, MGM Resorts announced its own “Sphere” in Dubai, and Wynn Resorts received approval for gaming in Ras Al Khaimah. Riyadh Air also placed an order for 60 additional aircraft in October in preparation for a mid-2025 launch. The GCC unified visa is expected to be implemented soon to facilitate cross-country travel within the Gulf region.
A key focus for the Middle East travel industry in 2025 will be Saudi Arabia’s progress towards achieving its Vision 2030, which aims to transform its economy through travel and tourism. Important indicators to track include the hotel brands Saudi signs, agreements to attract new source markets, and attention to tourism beyond mega projects. Saudi Arabia targets 150 million visitors with 70 million from outside the country, and the importance of offering a range of accommodations, not just luxury resorts, has been acknowledged by the Saudi Tourism Authority.
The Saudi Tourism Authority responded to concerns about the affordability of Vision 2030 for tourists by highlighting the importance of luxury accommodations as well as mid-market choices. Plans to develop affordable tourism options in secondary cities have been discussed by developers and the Ministry of Investment. The Public Investment Fund announced a new company to develop homegrown hotel brands in Saudi Arabia, with a focus on mid-scale properties. Hotel operators like Accor and Red Sea Global are also planning to introduce more affordable properties in the country.
Other important storylines to watch in the Middle East travel industry include the launch of the unified visa across the Gulf region, the growing gaming sector in the UAE, and the future direction of state-owned hotel group Jumeirah. Discussions around mid-market offerings, budget tourism development along the Red Sea coast, and the strategic development of hotels in Saudi Arabia are shaping the travel landscape in the region. The shift towards more affordable options in secondary and tertiary cities is a key trend to watch as the Middle East seeks to cater to a broader range of tourists beyond luxury travelers.
