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.

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.