GCC OUTBOUND TOURISM MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

GCC Outbound Tourism Market Size and Trends

The GCC outbound tourism market is estimated to be valued at USD 75.89 billion in 2024 and is expected to reach USD 127.55 billion by 2031, exhibiting a compound annual growth rate (CAGR) of 7.7% from 2024 to 2031.

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Several GCC countries have high disposable incomes and their citizens have emerged as an important consumer segment for global travel destinations.

Market Driver - Increasing disposable incomes

With the steady economic growth seen across the GCC region in recent years, disposable incomes have risen considerably. Countries such as Saudi Arabia, the U.A.E, and Qatar have heavily invested in diversifying their economies away from oil, with sectors such as real estate, tourism, and financial services seeing sizable investment. This has led to significant job creation and a growing middle-class population with far greater purchasing power than before. As wages have increased and unemployment has fallen, residents of GCC nations now have considerably more discretionary funds available after paying for necessities.

This surge in disposable incomes has fueled increased consumer spending on luxury and leisure activities. International travel has become much more affordable and accessible for the average GCC national. Five-star resorts, theme parks, ski resorts, and natural attractions around the world are top destinations for those looking to make the most of their higher spendable earnings. The tourism industry understands that more GCC travelers now have the means and desire to embark on lavish vacations outside of their home countries. Areas like Europe, Southeast Asia, Australia, and East Africa have captured much of this outbound tourism market from the GCC.

As the GCC middle class expands further and consumer wealth rises even higher in the coming years, outbound tourism from the region is positioned to grow substantially. More families and individuals will be able to afford not just one international trip per year but multiple holidays. Higher disposable incomes also mean travelers have larger budgets for premium accommodation, dining experiences, and activities when traveling abroad. The tourism sector in destinations worldwide will continue catering to these wealthy Gulf visitors looking to maximize their leisure spending. Overall, increased discretionary purchasing power is a major driver propelling the GCC outbound tourism industry upwards.

Market Concentration and Competitive Landscape

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Government Policies Encouraging Tourism

Throughout the GCC, governments have proactively introduced incentives and reforms making international travel easier for their citizens. Many nations now offer multiple-entry visas on arrival when traveling to select countries. Saudi Arabia waiving tourist visas for 49 states has amplified outbound travel significantly. E-visas have further streamlined entry processes for GCC travelers. These progressive policies aim to stimulate greater tourism exchange between the GCC and countries worldwide.

At the same time, fuel subsidies limiting airline ticket costs within the Middle East have encouraged greater plane ticket affordability. Regional low-cost carriers like Air Arabia and flydubai have proliferated, lowering airfare barriers. Government-owned airlines Emirates, Etihad, and Qatar Airways investing heavily in newer aircrafts and networks have boosted flight connectivity options.

Tourism authorities across the GCC are also actively promoting their countries as ideal launching points for international trips. Multi-city itineraries combining domestic with foreign destinations are highlighted. Events like Dubai Shopping Festival and Riyadh Season additionally inspire residents to explore abroad more during peak seasons. To facilitate overseas tourism, travel agencies are aided to develop diversified packages catering to all budgets.

As a result of supportive state interventions, GCC nationals now have far fewer hurdles to cross borders for leisure. Their interest in global travel is bolstered through strategic policy drives stimulating increased outbound tourism volumes over time. Such government encouragement for greater tourism participation abroad will remain a key factor propelling further outbound travel growth from the lucrative GCC market.

Key Takeaways from Analyst:

The GCC outbound tourism market has strong potential for growth driven by increasing disposable incomes and spending power of GCC citizens. Young population demographics with over 60% under the age of 30 also contribute to the higher propensity for foreign travel among GCC nationals. Emirates from the U.A.E and Qatar Airways expanded flight networks catering to GCC travelers have made more global destinations accessible. However, economic uncertainties and volatility in oil prices remain a restraint along with threat of political instability or terror attacks deterring travel to certain regions from GCC customers.

Western Europe serves as the fastest growing outbound sub-region on account of the popularity of shopping and heritage destinations like the U.K., France, and Italy. Outside of Europe, the U.S. is the top long-haul destination benefiting from focused marketing campaigns and ease of travel visas for GCC travelers.

Going forward, emerging Asian destinations like Thailand, Malaysia, and Indonesia are expected to witness increased outbound visitors from GCC with their tropical beaches and diverse attractions appealing to Arab travelers. Regional tourism boards need to leverage digital and social media better to showcase new attractions and packages specially tailored for GCC nationality visitors. Coordinated multi-country tourism promotions within certain regions can also boost overall outbound volumes from GCC.

Market Challenge - Limited vacation time

One of the key challenges currently faced by the GCC outbound tourism market is limited vacation time for the residents of GCC countries. With busy work schedules and long working hours, people in the GCC region have very little time to plan and take holidays. The average annual vacation time allocated to employees across the GCC is around 15-20 days. Compared to western markets where vacations are usually 3-4 weeks long, the short vacation windows in the GCC pose a hassle for tourists. With limited days off from work, tourists have very little flexibility to explore multiple destinations in a single trip. Additionally, public holidays also contribute to the overall vacation period leaving minimal time for leisure travel. The compressed schedule forces tourists to pack itineraries and spend less time at destinations. This hampers their travel experience and prevents them from fully immersing in local cultures. The short holiday durations pose challenges for the tourism industry to attract GCC travelers and promote destination exploration.

Market Opportunity - New destination exploration

The GCC outbound tourism market presents significant opportunities for exploring new and unconventional destinations. With growing exposure to global cultures through enhanced connectivity and exposure, GCC travelers are exhibiting more adventurous travel patterns. They are open to experiencing diverse locales, cuisines, activities, and immerse themselves in unfamiliar cultures. This change in mindset and appetite for novel experiences provides ample scope for emerging destinations to attract travelers from the GCC region. Off the beaten tourist routes, several charming and unique places with unspoilt natural beauty and local authenticity are gaining appeal among Gulf travelers. Promoting these hidden gems through distinctive virtual experiences and curated itineraries can capture the interest of travelers seeking fresh tourism products. The growing interest in new and exotic destinations also allows tourism boards and operators to devise innovative and refreshing packages tailored to the GCC outbound market.

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Insights by Travelers Type: Family Bonding Drives High Share of Families in GCC Outbound Tourism

The families segment is expected to make up 44.5% share of travelers in the GCC outbound tourism market in 2024, due to the importance placed on spending quality time together. Taking a vacation as a family is seen as essential for bonding and strengthening relationships between parents and children. The multigenerational structure of many GCC families means extended relatives such as grandparents are often included on trips. This facilitates intergenerational connections that are culturally significant.

Family tourism offers an environment where parents can make cherished memories with their kids without distractions from daily routines. Popular family destinations provide a variety of activities that appeal to all ages, from water parks and zoos to hiking trails and cultural sites. All-inclusive resorts are a particularly attractive option, handling accommodation and meals to give families maximum time together without responsibilities.

Safety is another major factor for GCC families, who seek safe, stable destinations where children can enjoy experiences under parents' supervision. Many market-leading locations have excellent family-friendly infrastructure and services like childcare. This peace of mind allows parents to relax on vacation.

Extended school holidays also contribute to the family travel trend. Summer breaks are the peak season for multi-week trips abroad with children out of education. Visiting overseas relatives during this time enables longer reunions that strengthen family bonds across borders.

The preference for multigenerational group trips illustrates how family values are profoundly ingrained in GCC culture. Spending holiday time together reinforces these traditional priorities and allows families to create memories that will last for years to come.

Insights by Purpose of Travel: Leisure Travel Dominates Due to Desire for New Experiences

The leisure travel segment is expected to hold 40.5% share of the GCC outbound tourism market in 2024, due to residents' strong desire to experience other cultures. With increasing disposable incomes, GCC nationals see international travel mostly for pleasure rather than duty.

Many seek destinations offering stunning scenery and outdoors activities they cannot find at home. Popular options include nature-focused regions of Europe, East Africa, and Asia Pacific. This aligns with a growing health and wellness trend where people pursue active pastimes like hiking, cycling, and water sports on vacation.

Cruise holidays particularly appeal due to the ability to visit multiple destinations in one trip. Staying on each cruise line's private islands also allows the exploration of secluded beaches untainted by mass tourism.

Cultural tourism has also risen with many travelers interested in learning about different ways of life and histories. City breaks to famous metropolitan hubs provide art, architecture, cuisine, and vibrant nightlife not available in the GCC. With higher living standards, residents crave novel experiences to enrich their lives rather than routine activities. This has made leisure the primary driver of outbound travel as people venture further afield seeking inspiration, learning, and visual splendor unavailable at home. The variety of leisure niches ensures there is broad-based demand across age groups for recreation abroad.

Market Report Scope

Key Developments

• In May 2024, during the Arabian Travel Market, the UAE Minister of Economy unveiled further details about the highly anticipated GCC Grand Tours visa. This initiative aims to enhance tourism across the Gulf Cooperation Council (GCC) member states, making it easier for travelers to explore the region. Set to be available by the end of 2024, the GCC Grand Tours visa promises to transform the travel landscape in the Gulf.
• In May 2024, the Gulf Cooperation Council (GCC) announced a groundbreaking initiative to introduce a Schengen-style tourist visa aimed at significantly boosting the region's tourism industry. This new visa system will allow travelers to visit multiple Gulf countries with a single visa, mirroring the convenience of the Schengen Area in Europe.
• In May 2024, the Gulf Cooperation Council (GCC) introduced an exciting initiative aimed at enhancing tourism across the region. The GCC Grand Tours visa allows travelers to explore all six member countries—Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the U.A.E—under a single visa, promoting seamless travel and cultural exchange.
• In August 2024, Visit Qatar unveiled the Visit Qatar Pass, designed to enhance the travel experience for visitors from the Gulf Cooperation Council (GCC) during the summer months. This new initiative aims to attract more tourists to Qatar by providing exclusive offers and benefits tailored to GCC residents.

*Definition: The GCC outbound tourism market refers to the market for tourism services catered towards citizens and residents of Gulf Cooperation Council countries traveling outside their home countries. The key countries in the GCC region include Saudi Arabia, the U.A.E, Qatar, Kuwait, Oman, and Bahrain. This market provides tourism destinations, hotels, airlines, tour operators, and other travel services the opportunity to attract high spending outbound travelers from the GCC seeking leisure and holiday experiences worldwide. Growth in this market is driven by increasing disposable incomes and willingness of GCC travelers to visit popular long-haul.

Market Segmentation

Detailed Segmentation:

•  Traveler Type Insights (Revenue, USD Bn, 2019 - 2031)
• • Families
  • Couples
  • Solo Travelers
  • Group Tours
•  Purpose of Travel Insights (Revenue, USD Bn, 2019 - 2031)
• • Leisure
  • Business
  • Medical Tourism
  • Education
  • Others
• Key Players Insights
  • Al Futtaim Travel
  • Al Ghanim Travel
  • Al Rostamani Travel and Holidays
  • Kanoo Travel
  • Omeir Travel Agency
  • Al Rais Travel Agencies
  • ITL World
  • Belhasa Tourism & Travel
  • Al Naboodah Travel
  • Al Tayer Travel Agency
  • Al Mosafer
  • Al Jazeera Travel & Tourism
  • Al Mufeed Travel & Tourism
  • Al Mufeed Travel
  • Al-Hokair Group
  • Al-Faisal Travel
  • Al Mufeed Travel Agency
  • Al Safwa Travel & Tourism
  • Al Shams Travel & Tourism
  • Al Ahlia Travel & Tourism