Thriving Gulf Tourism: Sector Surges to $247 Billion, Foreseen to Rise More to $319 Billion by 2034
The Gulf region's travel and tourism industry is experiencing a robust rebound and steady expansion, as highlighted in the latest figures. This growth represents a 31.9% increase in sectoral contribution compared to pre-pandemic levels in 2019.
The Gulf's travel and tourism sector is currently contributing significantly—often over 10%—to GDP in key countries and is projected to continue growing strongly driven by comprehensive economic diversification plans, infrastructural investments, and increasing global demand for tourism.
In Oman, the tourism sector contributed around $5.51 billion in revenues in 2024, up from $4.55 billion in 2018, with a compound annual growth rate (CAGR) of approximately 3.2%. The sector’s contribution to Oman’s GDP increased from about $5.98 billion in 2018 to $7.02 billion in 2024.
More broadly in the Gulf Cooperation Council (GCC) economies, tourism is forecasted to remain a key growth driver contributing nearly 13% of GDP by 2025. The GCC region is expected to see economic growth of approximately 4.4% in 2025, propelled by both rising oil production and strong non-oil sectors—tourism being a major component of the latter. Saudi Arabia and the UAE lead this regional growth, with substantial investment in tourism infrastructure fortifying their positions as global tourism hubs.
The Gulf's rising prominence as a global tourism hub is underscored by these figures. Globally, the travel and tourism sector accounted for 2.2% of total GDP in 2024. However, the Gulf's travel and tourism sector is currently ahead of the international average.
The figures indicate a continued positive trend for the Gulf's travel and tourism sector beyond 2023. In 2023, 26.5% of all international tourists arriving in the GCC were from within the region, suggesting that the Gulf's travel and tourism sector's focus on both domestic and international tourism is paying off.
The growth in intra-GCC travel could potentially boost the overall growth of the Gulf's travel and tourism sector. The number of tourists moving between Gulf countries grew at an average annual rate of 41.5% from 2019 to 2023.
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 - an estimated $371.2 billion. The average annual growth rate for the Gulf's travel and tourism sector over the next decade is forecasted to exceed 4.2%.
These figures were released by the Statistical Centre for the Cooperation Council for the Arab Countries of the Gulf (GCC-Stat), underscoring the importance of the travel and tourism sector in the Gulf's economic diversification strategies aimed at reducing dependence on oil revenues. The strategic location, substantial infrastructure investment, government support, growing appeal to international tourists, and hosting of global events and cultural festivals also contribute to the Gulf region's prominence as a global tourism hub.
Tourism is anticipated to account for nearly 13% of the Gulf Cooperation Council (GCC) economies' GDP by 2025, a testament to its significant role in economic diversification. Investment in tourism infrastructure has fortified Saudi Arabia and the UAE as global tourism hubs, with the latter's tourism sector projected to make up 13.3% of the GCC's GDP by 2034, generating an estimated $371.2 billion.
The Gulf's travel and tourism sector's financial contribution extends beyond individual countries, as it represents a crucial aspect of the GCC's overall business and lifestyle, contributing positively to finance and lifestyle sectors.
The growth in intra-GCC travel, which increased at an average annual rate of 41.5% from 2019 to 2023, could potentially fuel the continued expansion of the Gulf's travel and tourism sector, underscoring its potential to drive regional travel, tourism, and economic development.
