Tourism Overview
Tourism is a critical pillar of economic diversification for GCC states. The UAE, particularly Dubai, has established itself as the region’s dominant tourism destination, but Saudi Arabia’s ambitious tourism programme represents the most significant competitive challenge in the sector’s history.
International Arrivals and Revenue
| Country | International Arrivals (mn, 2024) | Tourism Revenue (USD bn, 2024) | Tourism as % of GDP |
|---|---|---|---|
| UAE | 28.4 | 49.2 | 9.3 |
| Saudi Arabia | 18.6 | 26.8 | 2.5 |
| Qatar | 4.2 | 8.4 | 3.6 |
| Kuwait | 0.8 | 1.2 | 0.7 |
| Bahrain | 3.8 | 3.6 | 7.8 |
| Oman | 3.4 | 3.9 | 3.7 |
Hotel Capacity and Performance
| Country | Hotel Rooms (thousands) | Average Occupancy (%) | RevPAR (USD) | Luxury Share (%) |
|---|---|---|---|---|
| UAE | 214 | 78 | 142 | 28 |
| Saudi Arabia | 312 | 62 | 86 | 14 |
| Qatar | 38 | 64 | 108 | 22 |
| Kuwait | 14 | 52 | 68 | 18 |
| Bahrain | 16 | 58 | 72 | 16 |
| Oman | 22 | 56 | 64 | 20 |
Tourism Infrastructure Indicators
| Country | International Airports | Annual Airport Capacity (mn pax) | UNESCO Heritage Sites | Mega-Attractions |
|---|---|---|---|---|
| UAE | 6 | 226 | 1 | 12 |
| Saudi Arabia | 4 | 148 | 6 | 8 |
| Qatar | 1 | 58 | 1 | 4 |
| Kuwait | 1 | 16 | 0 | 1 |
| Bahrain | 1 | 14 | 3 | 2 |
| Oman | 2 | 22 | 5 | 3 |
Tourism Growth Trajectory (CAGR 2019-2024)
| Country | Arrivals CAGR (%) | Revenue CAGR (%) | Room Supply CAGR (%) |
|---|---|---|---|
| UAE | 4.8 | 6.2 | 3.4 |
| Saudi Arabia | 12.4 | 14.8 | 8.2 |
| Qatar | 2.1 | 3.8 | 4.6 |
| Kuwait | 0.4 | 0.8 | 1.2 |
| Bahrain | 3.2 | 4.1 | 2.8 |
| Oman | 5.6 | 6.8 | 4.2 |
Relative Positioning Analysis
The UAE commands a decisive lead in absolute tourism performance, attracting more international visitors than all other GCC states combined. Dubai alone accounts for the majority of regional tourism revenue. The UAE’s advantage stems from decades of infrastructure investment, airline connectivity through Emirates and Etihad, and a portfolio of globally recognised attractions and events.
Saudi Arabia’s tourism growth rate is the highest in the GCC, reflecting its transition from a primarily religious tourism market toward leisure and entertainment. The kingdom’s giga-projects, including NEOM, The Red Sea, and AlUla, represent multi-billion dollar bets on destination tourism.
Trend Analysis
The most significant trend is Saudi Arabia’s accelerating tourism trajectory. While starting from a lower base in leisure tourism, the kingdom’s scale, heritage assets, and investment capacity present a long-term competitive challenge. Oman has emerged as a niche competitor in eco-tourism and adventure travel, while Bahrain benefits from proximity-driven weekend tourism from Saudi Arabia.
Strategic Implications
The UAE must evolve its tourism proposition from volume-driven growth toward higher-yield segments including business events, wellness, cultural tourism, and repeat visitation. Defending the connectivity advantage through continued investment in aviation infrastructure and airline capacity is essential as Saudi Arabia develops its own carrier expansion plans.