The GCC outbound tourism market refers to tourism by residents of GCC countries in destinations outside their home country. The countries of the GCC include Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates. With rising disposable incomes and the growing trend of experiential travel, tourism from GCC countries has been on an upward trajectory. Residents in GCC countries are increasingly traveling internationally for leisure purposes such as sightseeing, cultural experiences, adventure sports, and shopping. Growing exposure to global destinations through digital media and promotion of visa-friendly policies by several countries have also boosted outbound travel from the GCC region.
The Global GCC Outbound Tourism Market is estimated to be valued at USD 75.89 billion in 2024 and is expected to exhibit a CAGR of 7.7% over the forecast period 2024-2031.
Key Takeaways
Key players operating in the GCC outbound tourism market are Riya Tours, Muscat Travel and Tourism, American Express Travel, Tuniu Corporation, JTB USA, and Expedia Inc.
Market drivers
One of the key drivers for the GCC Outbound Tourism market Demand is the rising disposable incomes of GCC nationals. Higher economic growth and salaries in GCC countries have improved standards of living and boosted discretionary spending power. Additionally, expatriate workers from other countries remit substantial portions of their earnings back home, further elevating household incomes. This available surplus is being increasingly spent on international leisure travel. Furthermore, diversification of economies away from oil dependence is supporting job opportunities in non-oil sectors with competitive wages, augmenting the affordability of outbound trips. Favorable visa policies by major global destinations are also fueling market growth.
The ongoing geopolitical tensions between GCC countries and neighbors have impacted the GCC outbound tourism market in recent years. With strained relations between major GCC nations like Saudi Arabia and Iran, tourism flows to certain destinations have declined. Additionally, the political uncertainty in parts of the Middle East due to ongoing conflicts has made many GCC travelers cautious about visiting nearby regions like Iraq, Syria, Yemen for leisure trips. This risk-averse sentiment has resulted in GCC tourists preferring safer destinations in Europe, Asia and other locations for vacations.
To sustain the growth of GCC outbound tourism despite geopolitical challenges, travel companies and national tourism boards need innovative strategies. Diversification of destination portfolios with a mix of culturally-rich, politically-stable places will encourage continuous travels. Promoting once-popular regions as 'safe-to-visit' through effective awareness campaigns can boost returns. Public-private partnerships to develop new upscale resorts, attractions in lesser-known spots will provide compelling reasons for travels. Additionally, promoting multi-country Asia/Africa tour packages leveraging visa incentives can attract more GCC families and groups with variety-seeking interests.
In terms of regions concentrating GCC outbound tourism spending, Western Europe has traditionally attracted the highest value travelers from the Gulf. Countries like the UK, France, Italy and Germany enjoy strong brand recognition and diverse offerings appealing to GCC vacationers. However, Southeast Asian destinations have emerged as an important value center in recent years, led by popular markets like Thailand, Singapore and Malaysia. Their distinct cultures along with competitive infrastructure have transformed the region into a fast-growing tourism hub attracting significant spends from the Gulf.
Among individual destinations, Turkey has seen impressive growth to become the fastest growing country for GCC outbound travelers. Aggressive promotional campaigns, visa incentive schemes coupled with a wide choice of urban and natural attractions at affordable rates have catapulted Turkey to being one of the most preferred short-haul getaways. Additionally, rebuilding efforts in popular regions affected by conflicts aim to bring backGCC visitors interested in cultural heritage tourism. These initiatives make Turkey well-poised to sustain its lead over others as the top growth driver for the GCC outbound travel industry.
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