Tourism in the GCC region has experienced remarkable growth, driven by strategic initiatives, substantial investments, and a focus on cultural heritage and modern attractions. The region is now a major player in global tourism, attracting millions of visitors each year. Several factors have contributed to this recent surge, but the most notable reason is the region’s target of shifting away from oil as a main source of economic stability.
The travel and tourism market in the GCC region is expected to witness significant growth in the coming years. In 2024, the projected revenue for this market is estimated to be $8.08 billion, and it is expected to grow annually at a rate of 3.44 percent between 2024 and 2029, resulting in a market volume of $9.57 billion by 2029, according to Statista.
The GCC region, which includes Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the UAE, is renowned for its rich cultural heritage and rapid modern development, making it a prime destination for global travelers. The emergence of tourism in the GCC can be traced back to the late 20th century, with the development of infrastructure and the fostering of a conducive environment for tourism.
The turning point came with landmark events that captured global attention, such as the Formula 1 Grand Prix in Bahrain in 2004, the first in the Middle East, and the Asian Games hosted by Qatar in 2006, marking the first time the event was held in the GCC region. These events showcased the GCC region’s capabilities in hosting world-class events and highlighted its potential as a premier tourism destination.
Visions and strategies
Since then, the GCC region has doubled down on its efforts to promote tourism, launching several visions and strategies to propel growth and shift away from the oil economy.
Saudi Arabia’s Vision 2030
Saudi Arabia developed Vision 2030 to reduce its oil dependency by focusing on sectors like tourism, health, education, and infrastructure to stimulate economic growth. Central to this vision is the kingdom’s ambition to become a hub for international and domestic travelers, aiming to welcome 150 million visits a year by 2030 and generating 1.6 million job opportunities.
UAE Tourism Strategy 2031
To further solidify its status as a key tourist destination, the UAE has developed the UAE Tourism Strategy 2031 under the UAE’s “Projects of the 50”. The vision aims to enhance the nation’s touristic appeal and sustainability, setting a clear course for a prosperous future in global tourism.
Qatar National Tourism Sector Strategy 2030
Meanwhile, Qatar launched its national strategy with a focus on tourism development. Seeking to attract six million annual visitors within the next decade, the Qatar National Tourism Sector Strategy 2030 encompasses multifaceted initiatives to fortify Qatar’s position as an attractive tourist destination. The strategy also emphasizes alignment with local traditions, economic viability, and environmental sustainability. Moreover, it prioritizes preserving Qatar’s Arab and Islamic identity, promoting family values, and enhancing social cohesion.
Bahrain’s Tourism Strategy 2022-2026
In 2021, the Bahraini government launched the Economic Recovery Plan to achieve financial sustainability and economic stability by 2024. One of the key pillars of this plan is the Priority Sectors Plan, which includes the Tourism Strategy 2022-2026. This strategy aims to increase the contribution of tourism to the GDP from 7 percent in 2021 to 11.4 percent in 2026. Moreover, it seeks to increase the number of annual tourists to 14.1 million.
Oman’s National Tourism Strategy
In early 2016, Oman launched its National Tourism Strategy, with the aim of increasing international arrivals, boosting tourism’s contribution to GDP, and generating job opportunities for both internationals and Omanis. The vision also aims to make Oman one of the most important destinations for tourism by 2040.
Kuwait 2035 Vision
Historically renowned for its economic prosperity fueled by oil wealth, Kuwait is currently directing significant efforts towards diversification, with tourism emerging as a key focus. The Kuwait 2035 Vision outlines a strategic roadmap for sustainable growth and economic expansion, with tourism playing a central role in this effort.
Key developments and investments
In line with their respective visions, countries across the GCC region have committed to developing their tourism infrastructure, investing billions of dollars in mega-projects and developments. Under the directive of Crown Prince Mohammed bin Salman, the Vision 2030 economic reform plan launched with dozens of ambitious new projects that would help achieve the Kingdom’s goals. Launched in 2017, NEOM is a $1.5 trillion futuristic region in northwest Saudi Arabia powered by 100 percent renewable energy. NEOM is home to Trojena, Sindalah, Oxagon, and THE LINE: A 170-kilometer-long city that is expected to house as many as 10 million people.
Another major development currently underway in Saudi Arabia is The Red Sea, a 28,000-square-kilometer area that is home to over 90 islands, beaches, and desert dunes. The Red Sea is also home to the world’s fourth-largest barrier reef. Upon completion in 2030, the destination will offer 8,000 rooms in 50 hotels and 1,000 residential properties. Among the other major mega-projects in Saudi Arabia are the $62.2 billion Diriyah development, Qiddiya City, ROSHN, New Murabba, and AlUla.
UAE’s major developments
In the UAE, several developments have shaped the country’s landscape including the Yas Bay Waterfront development, valued at $3.3 billion. This year, Dubai also approved plans for the emirate’s longest 6.6km beach at Jebel Ali. The beach will cover an area of 330 hectares and will include two areas. It will have a 5km sandy beach that Nakheel will develop and a 1.6km mangrove beach that Dubai Municipality will develop.
In line with Dubai’s ambitions to promote eco-tourism, Agri Hub by URB launched with the aim of becoming a key tourist destination in Dubai’s countryside.
Situated in Abu Dhabi’s Cultural District, Saadiyat Grove is set to be a model for future smart and sustainable developments in the UAE and globally. The development will encompass 78,000 sqm of NLA, including community retail spaces, two retail boulevards, and a central shopping destination, which will introduce new experiential retail, dining, and entertainment concepts to the emirate.
The UAE is also home to the multi-billion dollar World Islands project. The $14 billion development, originally consisting of 300 man-made islands, launched more than 20 years ago in a boom period in Dubai’s real estate sector. In recent years, the development has gained renewed interest from developers seeking to transform it into one of the most famous destinations globally.
Qatar, Kuwait and Oman go big
In a major push to diversify its economy and attract foreign investment, Qatar recently launched an ambitious $5 billion tourism initiative named the Simaisma Project. Simaisma will feature a mix of luxury resorts, a theme park, an 18-hole golf course, and a marina. The development will also showcase sustainable architecture, incorporating smart systems and recycled materials. Qatar also developed the West Bay North Beach Project which covers 40,000 square metres of a premium beachfront in the heart of Doha.
Meanwhile, Kuwait is developing the $82.2 billion Silk City project, a massive development that boasts the Burj Mubarak Al Kabir tower, a nature reserve, a duty-free area, a new airport, a large business center, and other facilities.
In addition, Oman currently has more than 363 projects underway across all the governorates. The country’s Ministry of Heritage and Tourism recently announced a comprehensive plan to invest over $31 billion in tourism by 2040. Several upcoming projects, such as the Nasim Resort at Jabal Akhdar, seek to attract high-end tourists while minimizing environmental impact.
Coastal tourism surges
The GCC region’s most notable developments and projects include coastal elements. In addition to the surge in the number of water-front developments and hotels, the region has shifted its focus to cruise tourism in a bid to attract additional tourists.
According to the World Economic Forum, coastal and marine tourism represented at least 50 percent of total global tourism in 2023. It is a $9.5 trillion revenue industry that generates every one in 11 jobs. Indeed, for many small island developing states, it is their largest economic sector.
Saudi Arabia recently announced that it granted the first six licenses for tourist yacht agents as part of its efforts to develop a thriving coastal tourism sector. The initiative underscores the country’s commitment to regulating maritime and tourist activities and creating an inviting environment for tourists, investors, and industry professionals in the Red Sea as a leading global destination, in line with Saudi Vision 2030.
The UAE has also advanced its cruise tourism sector recently, launching the Resorts World One ship which departs from the Port Rashid Cruise Terminal 2 in Dubai three times a week to several Gulf destinations.
Qatar Tourism has also kicked off its 2024-2025 cruise season with the arrival of the Resorts World One cruise ship. This season is gearing up to become Qatar’s biggest yet. The growth of Qatar’s cruise sector is pivotal to achieving the National Tourism Strategy 2030. The 2024-2025 season is expected to see a 30 percent increase in cruise calls and a 24.5 percent increase in visitors compared to the previous season, reflecting the growing demand for cruise vacations in the region.
GCC region’s race to expand airports
In a bid to boost its tourism sector, the GCC region has not only invested in mega-projects but also advanced its aviation sector. Countries in the region have set ambitious goals for the tourism sector to help reduce their dependence on oil. The aviation industry plays an essential role. The UAE and Qatar have invested heavily in their airports in recent decades. More recently, Saudi Arabia expanded its investments in airports to increase capacity to support the anticipated population and tourism growth.
Dubai unveiled a $35 billion plan for the world’s largest airport. The Al Maktoum International Airport megaproject entails massive expansions. It will have five parallel runways and four aircraft gates and be five times the size of DXB.
Announced in 2022, King Salman International Airport in Riyadh is one of the most ambitious airport projects in the world. Covering 57 square kilometers, it will feature six parallel runways and a series of new terminals. The Abha International Airport’s $1.4 billion expansion is another key element of Saudi Arabia’s aviation growth strategy.
Qatar’s Hamad International Airport is also undergoing a major expansion. Following the success of hosting the 2022 FIFA World Cup, the airport is now in its Phase B development, which will increase its annual capacity to 70 million passengers.
Kuwait is also investing heavily in the modernization of its airport, with a focus on Terminal 2, which will increase capacity to 25 million passengers annually by 2025. Oman is also making significant moves to expand its airport infrastructure. The Sultanate plans to build six new airports by 2029, adding to its existing network. By 2040, Oman aims to welcome 50 million tourists annually, up from 17 million in 2023.
Unified visa
Similar to the Schengen visa, which allows its holder to travel and move freely between the European Union countries, the tourism ministers of the Gulf Cooperation Council (GCC) approved last year the GCC unified tourist visa, during their seventh meeting held in the Sultanate of Oman.
The unified visa would allow its holder to visit the six GCC countries and extend the duration of their visit to these countries for more than 30 days. It is expected to enter into force soon, depending on the readiness of the internal systems of the countries. The GCC countries intend to launch the unified tourist visa by December 2024, which will help the region attract about 129 million visitors by 2030.
With a positive impact expected on the efficiency of business operations, relationships, transactions, and travel, the unified visa may have various impacts on the economy of the member nations. The simplified process for obtaining a visa would also likely attract more tourists to the GCC region, driving tourism revenues for the member countries. This influx of tourists would further contribute to the growth of the hospitality, transportation, and entertainment industries.
Read: How are UAE, Saudi Arabia leading way in sustainable tourism?
Global and regional cooperation
The World Travel and Tourism Council (WTTC) expects 2024 to be a record year for global travel and tourism, with the sector’s economic contribution reaching $11.1 trillion. The GCC region’s countries have recently bolstered their efforts to forge greater ties with countries globally to promote their tourism offerings. Both the UAE and Saudi Arabia have expanded their ties with China in a bid to attract additional tourists from the country.
To further boost its tourism and investment aspirations, the UAE has expanded its visa-free travel policy. Now, citizens from 82 countries can travel visa-free to the UAE without the need to secure a visa beforehand. Qatar has also recently expanded its visa-free entry policy to include citizens from 102 countries, aiming to boost tourism and showcase its rich cultural heritage and modern attractions.
Saudi Arabia’s Ministry of Tourism also announced that the United Kingdom, United States, and Schengen tourism visa holders, as well as permanent residents from any European Union country, can now enjoy streamlined entry to Saudi Arabia by applying for an instant e-Visa via the Ministry of Foreign Affairs website.
Oman is also experiencing a significant boost in tourism following the introduction of a new visa-free travel program, which now includes 101 countries while Kuwait’s visa-free policy includes 51 countries.
