DUBAI — Travel and tourism are directly contributing $76.6 billion to the gross domestic products (GDP) in the Middle East and is forecast to rise by 4.2 percent this year, Mark Walsh, portfolio director of Reed Travel Exhibitions.
Speaking ahead of this year’s Arabian Travel Market (ATM), Walsh highlighted the World Travel & Tourism Council (WTTC) Economic Impact 2013 outlook, which supports positive forecast for industry development and performance in the region this year.
“The regional tourism map is now incredibly diverse with travel and tourism directly contributing $76.6 billion to GDP in 2013, which is forecast to rise by 4.2% this year alone as ongoing investment into the sector and infrastructure development in key markets supports the dual long term goals of driving visitor numbers and moving toward sustainable economic diversification,” said Walsh as the Arabian Travel Market (ATM) unfolded in Dubai.
Walsh emphasized the growth of a number of regional destinations, in particular the United Arab Emirates (UAE), Oman, Qatar and Saudi Arabia.
“The UAE has long been a role model for regional tourism development, and recently released figures from the WTTC show that tourism in the Emirates is growing significantly faster than the world GDP growth average, contributing an impressive 14 percent to the UAE economy in 2012, compared to the global trend of 9 percent - and expected to rise by 3.2 percent in 2013,” he said.
Arabian Travel Market 2013, the region’s leading travel industry showcase, opened in Dubai on Monday as it prepares to celebrate its 20th edition and welcomed over 2,500 exhibitors from 87 countries with exhibition floor space sold out at over 22,000 square meters.
Industry investment, which hit $22.5 billion last year is also set to increase in 2013, by an estimated 12 percent, as the country fully embraces the social and economic benefits of tourism, maximising on the ongoing expansion of its airline route networks, and a healthy economic outlook.
The UAE’s nearest neighbor, the Sultanate of Oman, is also pursuing plans for tourism growth spurred by the government’s $39 million investment into development of Dhofar province, with the aim of making its annual Khareef (monsoon) festival an in-demand fixture on the global tourism calendar.
This is supported by forecasted hotel room capacity growth at a CAGR of 5.3 percent between now and 2016, which will see Oman swell its current base of 5,331 rooms by an additional 2,000 before the end of this year.
One of the fastest growing markets in the Gulf, Qatar is also moving ahead with its $65 billion investment plan that focuses on the state’s hosting of the 2022 FIFA World Cup. Over 85,000 new hotel rooms will bolster current inventory levels as Qatar looks to welcome as many as 3.7 million visitors per annum by the time the tournament kicks off.
“Saudi Arabia is an extremely interesting market at the moment, and there is a strong push towards development of domestic tourism with 22.5 million residents looking for new experiences aside from the favored summer destination of Jeddah, as well as undertaking their Hajj and Umrah commitments,” said Walsh.
Haj and Umrah travel generated $16.5 billion for the Kingdom in 2012 and business tourism demand is also growing, particularly for Riyadh, the capital city and seat of government. Tourist arrivals are forecast to grow at CAGR of 4 percent by 2022, driven by strong growth across all sectors.
“Tourism is currently the country’s second largest industry and this has huge significance for the economy as $80 billion worth of investment into key infrastructure projects including airport expansion, railways and roads comes to fruition in the next 10 years,” remarks Walsh. – SG
