International visitors drive 85 pc growth in accommodation demand in Middle East

Oxford Economics report at ATM 2025 reveals Middle East travel trends
2025-05-01
/
/ New Delhi
Research unveiled at Arabian Travel Market outlines leading travel trends and market opportunities in the Middle East
International visitors drive 85 pc growth in accommodation demand in Middle East

Research unveiled at Arabian Travel Market outlines leading travel trends and market opportunities in the Middle East

Research by Oxford Economics unveiled at Arabian Travel Market highlights key travel trends, digital growth and emerging market opportunities in the Middle East, emphasising leisure, luxury and online travel agency expansion through 2028.
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Exclusive research unveiled at Arabian Travel Market (ATM) has highlighted transformative trends reshaping Middle Eastern tourism, as industry leaders gather to explore growth opportunities in leisure, luxury and business travel.

In a press statement, the organisers say that the ATM Trends Report: Leisure, Luxury and MICE – Leading Trends for the Middle East, presented by Tourism Economics, an Oxford Economics company, outlined evolving visitor preferences, economic impacts and emerging opportunities across inbound and outbound markets.

Dave Goodger

Dave Goodger

“Global travel will hit new record levels this year, converging back on the pre-pandemic trend, with international and domestic demand rebounding across all regions of the world. We are seeing people prioritising travel over many other aspects of spending, with the Middle East being a popular destination. In the GCC, growth is outpacing the global average and travel in the region is largely being driven by international demand, with over 85 pc of the expected growth in Middle East accommodation demand coming from international travel,” says Dave Goodger, Managing Director EMEA, Tourism Economics, part of Oxford Economics Company.

Also Read: Sustainability, local jobs & culture drive GCC’s tourism vision at ATM2025

The statement adds that key findings emphasised the rise of niche segments like entertainment, educational and elderly travel, with Trip.com Group noting their potential to unlock regional growth through innovative collaborations.

“The Middle East presents tremendous growth opportunities and serves as a crucial node connecting Europe, Africa and Asia. Convenient entry policies, increased direct flights and robust investments in tourism have contributed to its rapid recovery. With our insights into new consumer trends and our dedication to business and technological innovation, we look forward to strengthening our collaboration with regional partners to attract global travellers and bring forth a more connected and prosperous future,” says Jane Sun, CEO of Trip.com Group.

Jane Sun

Jane Sun

According to the statement, on Wednesday, a research company, VIDEC’s latest analysis revealed a rapidly expanding UAE air travel market, projected to reach USD 5.4 billion by 2028, driven by a 6.9 pc annual growth rate.

The statement says that online travel agencies (OTAs) accounted for USD 679 million in UAE air ticket sales in 2024, a 20 pc year-on-year increase, while direct airline channels captured 56 pc of online bookings, totaling USD 851 million.

Also Read: Saudi Arabia to highlight tourism expansion at ATM 2025

Virendra Jain

Virendra Jain

“UAE, Saudi Arabia and India have a majority young and digitally connected population with purchasing power that’s conducive for the rapid growth of online travel. The UAE is an ultimate global village, and its cosmopolitan nature as well as its recognition as a major shopping centre, makes it a favoured destination for both Saudis and Indians. All three markets enjoy cultural and religious affinity, and enviable air connectivity. Religious, luxury, VFR and wellness are some of the primary tenets that would continue to perpetuate high-growth for this travel and tourism corridor,” says Virendra Jain, Founder and CEO, VIDEC Consultants.

Additionally, the surge is attributed to enhanced digital interfaces, loyalty programmes and personalised experiences from carriers like Emirates, Etihad and flydubai.

Moreover, VIDEC highlighted the UAE’s competitive OTA landscape, fueled by a large expatriate population and diverse airline options, positioning it as a global leader in travel tech adoption.

The organisers say that the findings underscore a broader shift toward digital-first strategies, with online platforms becoming the preferred booking medium across the region.

According to the statement, VIDEC’s reports on Saudi Arabia and India further emphasised growth trajectories, with India’s outbound tourism projected to hit USD 55 billion by 2034.

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