Gulf Tourism Spending Surge: $223.7bn Target by 2034

Gulf countries expect tourism spending to reach $223.7 billion by 2034, which will change their economic landscape dramatically. These nations have already seen total international visitor spending of $135.5 billion in 2023. The numbers show a robust 28.9 percent increase from 2019 [-3] [-4], which proves strong recovery after the pandemic.

Tourism has become the life-blood of Arabian Gulf countries’ economic diversification plans. The sector’s impact on Gulf Cooperation Council countries’ economy continues to grow, with visitor spending expected to make up 13.4 percent of total exports by 2034 [-4]. This contribution shows how tourism has evolved from a supporting role to become the main focus of Persian Gulf countries’ national development plans.

Gulf Arab countries transform tourism into economic engine

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Gulf Arab countries now see tourism as a key part of their economic diversification plans. Tourism stands out from other industries because it creates many jobs at different skill levels.

Saudi Arabia is changing things in a big way. The country wants to welcome 70 million international visitors by 2030 and boost total tourism visits to 150 million each year. This growth should create about 1.3 million new jobs in tourism. The kingdom’s tourism sector has already added 250,000 jobs since 2019, which shows real progress.

The country needs strong infrastructure to support this growth. Saudi Arabia plans to put AED 2937.55 billion ($800 billion) into tourism infrastructure in the next ten years. Last year’s visitor spending reached 250 billion Saudi riyals (AED 246.02 billion). This is a big deal as it means that spending is now four times higher than before the pandemic.

Tourism brings more than just money to Gulf Cooperation Council countries. It helps them vary their exports beyond oil and gas. These nations’ international profiles have gotten a boost from prestigious events that energize local businesses.

Each Arabian Gulf country uses its unique strengths to build tourism. The UAE’s Tourism Strategy 2031 wants to attract 40 million hotel guests. Qatar focuses on culture and sports after hosting the World Cup. Bahrain uses Formula 1 to attract leisure tourists. Oman’s natural beauty draws 11.7 million visitors yearly.

Persian Gulf countries together want to more than double their overnight guests by 2030. Tourism’s value keeps growing – just look at the UAE, where it added AED 220 billion to the economy in 2023, making up 11% of the total.

Mega-projects and infrastructure reshape visitor experience

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The Arabian Gulf countries are transforming their visitor landscape with massive infrastructure developments. Saudi Arabia’s NEOM project leads the way as the most ambitious undertaking, with an investment of AED 5.51 trillion. This futuristic region in northwest Saudi Arabia will run entirely on renewable energy and features THE LINE, a remarkable 170-kilometer-long city that will house 10 million residents.

Saudi Arabia’s Red Sea Project spans 28,000 square kilometers and includes more than 90 islands. The destination will feature 8,000 rooms in 50 hotels and 1,000 residential properties when completed in 2030. NEOM’s commitment to environmental conservation shows in its plan to protect 95% of its land.

The UAE’s infrastructure growth continues with the AED 12.12 billion Yas Bay Waterfront development. Dubai has approved plans for a 6.6km beach at Jebel Ali that will cover 330 hectares. Abu Dhabi’s Saadiyat Grove stands as a model for smart, sustainable developments with 78,000 square meters of retail space.

Qatar has invested AED 18.36 billion in the Simaisma Project that features luxury resorts, a theme park, an 18-hole golf course, and a marina. The country’s West Bay North Beach Project covers 40,000 square meters of premium beachfront in central Doha.

Transportation infrastructure matches these ambitious plans. Dubai’s Al Maktoum International Airport will become the world’s largest, while Riyadh’s King Salman International Airport will establish Saudi Arabia as a global aviation hub. The Red Sea International Airport, designed to serve one million tourists annually by 2030, welcomed its first international flight from Dubai in April 2024.

These projects embrace state-of-the-art sustainability features. The Red Sea Project will build Saudi Arabia’s largest off-grid charging network with 150 charging stations. Qatar’s cruise tourism has grown significantly, with over 53 cruise ships bringing 191,944 passengers by January 2025. The Persian Gulf countries are creating tourism experiences that combine luxury with environmental responsibility through these landmark projects.

Tourism growth fuels jobs, sustainability, and regional unity

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Tourism development drives job creation in GCC countries. The GCC’s tourism workforce will more than double between 2020 and 2030. Saudi Arabia wants to employ 1.6 million tourism workers by 2030. The UAE expects its tourism workforce to reach 872,000 by 2030, up from 580,000 in 2018. Abu Dhabi plans to support 255,000 jobs this year.

Tourism has created jobs by a lot in the region, with a 9.8 percent contribution. Abu Dhabi’s Tourism Strategy 2030 plans to add 178,000 new tourism jobs by the end of this decade.

Hospitality firms in Arabian Gulf countries still face recruitment challenges despite this growth. Many workers have switched to other industries that offer flexible hours and better pay. Hotel chains now focus on internal talent development and competitive compensation packages to address this issue.

Persian Gulf countries have made eco-friendly practices central to tourism development. The UAE has adopted ecotourism as a key element to enhance its tourism sector’s sustainability. The Dubai Sustainable Tourism initiative requires hotels to follow 19 standards that cover sustainability requirements.

Regional tourism cooperation continues to gain strength. The upcoming Unified GCC Tourist Visa will make travel between member states easier. Tourism officials note that “If all GCC countries shine together with one unified effort, this will have a huge echo in the tourism market”.

Gulf Arab countries now prefer collaboration over competition. These nations market the region as one destination by relaxing visa rules and improving flight access. This approach has led to more multi-GCC trips, making the Gulf a connected, diverse destination.

Gulf Tourism: A Transformative Economic Force

In the last decade, Gulf countries have reshaped their economic futures by making tourism their life-blood strategy. This remarkable change shines through projected spending of $223.7 billion by 2034. A robust 28.9 percent growth since 2019 shows the region’s resilience and smart planning.

Without doubt, Saudi Arabia leads this transformation. The kingdom’s bold targets and $800 billion planned infrastructure investments point to a major economic change away from oil dependence. Their neighboring states have carved out unique tourism identities while deepening their commitment to regional appeal.

Mega-projects that reshape the scene mean more than just architectural feats. These developments showcase a strategic vision to diversify the economy sustainably. NEOM, The Red Sea Project, and many more initiatives will draw tourists and create jobs for decades.

The tourism boom’s biggest benefit lies in job creation. Tourism workforce numbers will double between 2020 and 2030, opening doors for Gulf citizens and expatriates. The sector now makes up 9.8 percent of regional employment, which shows its power to reshape the economy.

Environmental responsibility, once a secondary concern, now drives tourism development in the Gulf. The UAE’s ecotourism projects and Saudi Arabia’s renewable energy promises at NEOM blend environmental care with economic growth.

The new Unified GCC Tourist Visa shows how working together boosts each country’s success. Travelers now see the Gulf as one connected destination rather than separate nations.

Looking toward 2034, these countries will face challenges with hiring and environmental issues. Yet strong investments, better infrastructure, and regional teamwork set Gulf tourism up for steady growth. The expected $223.7 billion in spending serves as evidence of a bold transformation across the Arabian Peninsula.