Luxury driving hospitality sector...

Research for Arabian Travel Market shows occupancy rates rise as tourism in the Gulf booms

The hospitality sector in the GCC is showing strong signs of growth, according to new research from industry data experts STR produced on behalf of Arabian Travel Market (ATM).

The report states that Revenue per Available Room (RevPAR) across Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE as a whole rose by 5.4% in 2024 compared to 2023.

This increase is attributed to occupancy rates across the GCC reaching 69.5% in 2024, beating pre-pandemic performance, and showing the resilience and commitment to boosting tourism in the region.

Government initiatives such as Saudi Vision 2030, Qatar’s National Vision 2030 and the UAE’s We The UAE 2031 are playing a key role in driving tourism development.

The research found that Average Daily Rate (ADR) grew 2.4% in the GCC last year, thanks in part to a growing luxury hotels segment, with 19% of rooms in the region being luxury, compared to 16% a decade ago.

STR’s report says hotel development will be dominated by the luxury segment, and that Saudi Arabia has more luxury rooms in the pipeline than currently exist in the kingdom.

The kingdom’s total hotel rooms more than doubled in Q3 2024, soaring from 214,600 to 443,200, with plans for 320,000 additional hotel rooms by 2030. An estimated 221,000 of those will be located in the Holy Cities.

Danielle Curtis, Exhibition Director ME at ATM, said luxury hospitality continues to be a "driving force" behind the region’s tourism growth with its offering of "exceptional experiences" that attract high-spending travellers from around the world.

“As demand for premium travel rises, the GCC is well-positioned to strengthen its reputation as a global luxury tourism hotspot.”

With its exceptional experiences, luxury hospitality continues to be a driving force behind the region’s tourism growth

Danielle Curtis, Exhibition Director ME, ATM

IHG’s Managing Director across India, Middle East & Africa, Haitham Mattar, added that several markets across the GCC are experiencing an exciting phase of growth in tourism and hospitality, resulting in an increase in demand across hotel segments.

During ATM, which will be held 28 April to 1 May 2025 at Dubai World Trade Centre, Sarah Duignan, Director, Client Relationships at STR will dive further into how the various GCC markets are individually contributing to the overall GCC success story.

ATM will launch a dedicated business events zone at this year’s show, with the IBTM@ATM Zone recognising the growth in the business events sector, which is predicted to reach US$2.5 trillion by 2035, according to Allied Market Research.

Now in its 32nd year, ATM is the leading international travel and tourism event in the Middle East for inbound and outbound tourism professionals.

For more information, visit hub.wtm.com; to arrange a meeting with Connecting Travel at our ATM 2025 stand, email nadine.bridi@connectingtravel.com

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