Booming Gulf Tourism: Sector Reaches a Value of $247 Billion, Anticipated to Skyrocket to $325 Billion by 2034
The Gulf's travel and tourism sector is witnessing a robust rebound and steady expansion, contributing approximately 11.4% to the region's GDP in 2024, amounting to US$247.1 billion. This growth is evident not only in the overall sector but also in intra-GCC travel, which saw an average annual growth of 41.5% from 2019 to 2023.
According to the latest figures released by the Statistical Centre for the Cooperation Council for the Arab Countries of the Gulf (GCC-Stat), the Gulf's travel and tourism sector is projected to experience strong growth and increasingly contribute to the region's GDP by 2034.
Saudi Arabia, a key player in this growth, anticipates a tourism growth rate of approximately 17.7% annually between 2025 and 2034. This surge is driven by aggressive expansion efforts under its Vision 2030 agenda and ambitious visitor targets that have already surpassed 100 million annual tourists by 2024. Saudi Arabia’s tourism investments include major projects like the Red Sea Project and Qiddiya entertainment city, supporting its aspirations to become a leading global tourism destination.
Oman’s tourism sector also shows sustained growth, with revenues reaching $5.5 billion in 2024 from $4.55 billion in 2018, reflecting a compound annual growth rate (CAGR) of about 3.2%. The sector’s contribution to Oman’s GDP rose from $5.98 billion in 2018 to $7.02 billion in 2024.
The UAE, as the current GCC tourism leader, maintains a competitive position with robust infrastructure and visitor numbers but faces increasing competition from Saudi Arabia’s expanding sector. Enhanced policies, such as the upcoming unified GCC tourist visa, are expected to further fuel regional travel and tourism integration by making cross-border travel easier within GCC countries.
While precise overall GCC-wide tourism GDP contribution projections for 2034 are not specified in the available data, the combined trajectories in Saudi Arabia and Oman—key GCC members—indicate substantial growth in both tourism receipts and GDP share driven by strategic investments, policy reforms, and rising visitor arrivals. Saudi Arabia’s near-18% growth rate significantly outpaces Oman’s 3.2%, signaling a potential shift in the dominant tourism economy within the GCC by 2034.
The average annual growth rate for the Gulf's travel and tourism sector over the next decade is forecasted to exceed 4.2%. By 2034, the estimated value of the Gulf's travel and tourism sector is projected to reach $371.2 billion, representing a 31.9% growth compared to pre-pandemic levels in 2019.
The Gulf's strategic investments in infrastructure, hospitality, and travel experiences are tailored for both regional and international visitors. The outlook for the Gulf's travel and tourism sector remains promising, with projections indicating that by 2034, it could make up 13.3% of the GCC's GDP. The growth in intra-GCC travel highlights the strength of domestic and regional tourism in the Gulf, accounting for 26.5% of all international tourists arriving in the GCC in 2023.
The Gulf's travel sector is experiencing a significant increase in domestic and regional tourism, with the sector's contribution to GDP compared to the international average. The rising prominence of the Gulf as a global tourism hub is reflected in the region's travel statistics.
- The travel and tourism sector's strong growth in the Gulf, supported by strategic investments, policy reforms, and increased visitor arrivals, is expected to boost the sector's contribution to the region's GDP, making it an attractive field for business investment.
- As Saudi Arabia's tourism sector experiences a substantial growth rate, driven by Vision 2030, it presents opportunities for finance, especially with major projects like the Red Sea Project and Qiddiya entertainment city, which are geared towards attracting international tourists.
- The UAE, while maintaining a competitive edge in terms of infrastructure and visitor numbers, may face growing competition from Saudi Arabia's expanding tourism sector. However, initiatives like the unified GCC tourist visa could fuel regional travel and tourism integration, promoting a lifestyle of ease in travel within the GCC.
