The promising future of Arab tourism

Saudi Arabia and the UAE have become global tourist destinations and are heavily investing in the sector

Hot Air Balloon Festival over Mada'in Saleh (Hegra) ancient site, AlUla, Saudi Arabia. was taken in 2020 Mar 18
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Hot Air Balloon Festival over Mada'in Saleh (Hegra) ancient site, AlUla, Saudi Arabia. was taken in 2020 Mar 18

The promising future of Arab tourism

The birth of tourism can be traced back to 17th century Europe, when the nobles and wealthy visited neighbouring countries and paid for services when touring new regions. In the years, decades, and centuries that followed, tourism expanded outside Europe, and tourism activity now includes religious visits and pilgrimages to holy places.

The Middle East has a wealth of attractive tourist draws — from historical landmarks and monuments to warm beaches, traditional foods, events, and festivals.

Let us explore some of the most beautiful and interesting places to visit in this diverse region.

Traditional Arab tourist hubs

Countries such as Lebanon, Syria, Egypt, Tunisia, and Morocco have always been magnets for tourists, with their wide selection of cultural activities and abundance of historical sites including ancient monuments, ruins and shrines.

Tourism has long been a pillar of these economies and, as such, tourism has been promoted across Europe and North America to attract tourists from these lands.

Recent reports point to high tourism revenues in these countries before the Arab Spring in 2011, as well as after the Covid-19 pandemic in 2020.

Gulf tourism on the rise

Recently, Arab countries from the GCC region — especially Saudi Arabia and the UAE — have also made their mark on the global tourism landscape.

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Tourists during a visit to the ancient archaeological site of Hegra in AlUla, Saudi Arabia, on Sunday, Jan. 22, 2023.

These countries have traditionally depended on oil and gas since the beginning of the 1950s but now are looking to diversify their economies to reduce their dependency on oil. As such, tourism is a relatively new and emerging activity.

Read more: Hinat and the Queens of the Nabataean Kingdom

So how can Arab governments boost the contribution of the tourism sector to their GDP?

In a report issued in January 2022, the UN World Tourism Organization named France the most visited destination in terms of international tourist arrivals with 82.7 million visitors, followed by the United States with 76.4 million visitors, while Spain ranked third with 75.3 million visitors.

Arab rankings

But where do Arab states fall on such rankings?

Saudi Arabia ranked 19th with 18 million visitors, while the UAE ranked 25th with 14.8 million visitors. Morocco came in 35th with 10.5 million visitors, Tunisia 49th with 5.7 million visitors, and Egypt 52nd with 5.3 million visitors.

This ranking reflects tourist activity in 2021, which is interesting considering the preventive measures taken at the time to combat the pandemic which disrupted tourism in many places, including Arab countries. Last year, many countries reopened their borders to visitors, which is likely to reflect positively on 2022 figures.

UNWTO estimates tourism revenues in the UAE at $19.5 billion, Saudi Arabia at $11.1 billion, Morocco at $6.6 billion, Egypt at $2.6 billion, and Tunisia at $1.2 billion. However, data on the number of visitors or revenues in Arab countries must be approached carefully given the lack of credibility in the statistical approaches of many Arab countries.

Instead, these figures should be treated as inferential indicators to develop perceptions about the future of tourism in the Arab world. It goes without saying that Egypt, Morocco, and Tunisia had achieved significant results in this sector before 2011, when tourism was a significant contributor to the economy, which resulted in increased investments in hotels and resorts and improved tourism services.

Saudi and Emirati investments in tourism

Saudi Arabia and the UAE are striving to consolidate their positions on the global tourism map. Their respective private sectors are undertaking several resort, hotel, and entertainment centre projects, while their governments are sponsoring others, including infrastructure projects such as ports, airports, roads, power and water supply, and other vital facilities.

Saudi Arabia should be able to attract more visitors after upgrading its tourism sector and promoting Hajj and Umrah tourism.

AFP
Muslim worshippers pray around the Kaaba, Islam's holiest shrine, at the Grand Mosque in the holy city of Mecca during the second Friday prayers in the holy month of Ramadan on March 31, 2023.

The recent cultural and social openness will also enhance recreational activities in the country and thus attract more visitors, especially from other Gulf countries.

Saudi Arabia should be able to attract more visitors after upgrading its tourism sector and promoting Hajj and Umrah tourism. The recent cultural and social openness will also enhance recreational activities in the country and thus attract more visitors

The Saudi Ministry of Investment confirms that spending on tourism projects increased in the first half of 2022 compared to pre-Covid-19 and stood at $7.2 billion.

Read more: Why Saudi Arabia is investing in culture

This year, the Kingdom aims to attract investments worth SAR 220 billion ($59 billion). Many tourism projects are underway across the Kingdom, and ambitions are high to provide suitable resorts, hotels, and beaches to attract tourists at all times of the year. Moreover, Saudi Arabia seeks to attract nearly 100 million visitors annually by the end of this decade.

Saudi Arabia seeks to attract nearly 100 million visitors annually by the end of this decade.

Bahrain tourism

A report issued by the Bahrain Economic Development Board on 21 November 2022 found that the country attracted $291 million in tourism investments during the first three quarters of 2022.

The Board had previously indicated that the volume of investment in the tourism sector amounted to $13 billion at the end of 2017, including 14 major projects aimed at strengthening the role of tourism in the national economy.

Official Bahraini sources stated that the tourism sector accounted for 5% of the country's GDP. In a statement she made last February, Minister of Tourism Fatima bint Jaafar Alsairafi confirmed that the sector reaped $4 billion in revenue in 2022.

Bahrain represents a useful model of openness that promotes development and growth in the tourism sector. The country has long adopted a tolerant, open-minded social philosophy that allows personal freedoms, which helped boost Bahrain's appeal as a tourist destination.

The tourism sector employs significant numbers of expatriate workers, but efforts are currently underway to boost the number of locals employed in the sector. At any rate, there is no doubt that employment in the tourism sector represents an economic challenge for Bahrain.

UAE: $27 billion investments in the tourism sector

The UAE has made significant strides to develop tourism and improve tourism revenues through activities like exhibitions, festivals, shopping, and resorts and hotels.

The UAE Minister of Economy stated that the tourism sector contribution to the GDP is 11.9%, stressing that the UAE is targeting new investments in the sector estimated at AED 100 billion ($27 billion). Dubai, Abu Dhabi and Sharjah, have become an important crossing point between East and West, with airport capacity increasing to more than 84 million passengers annually.

The UAE is targeting new investments in the sector estimated at AED 100 billion ($27 billion). Dubai, Abu Dhabi and Sharjah, have become an important crossing point between East and West, with airport capacity increasing to more than 84 million passengers annually.

In Dubai alone, the number of international visitors increased in 2022 to 14.4 million, according to the Department of Economy and Tourism in Dubai.

AFP
The Museum of the Future in Dubai, UAE.

While Abu Dhabi, Sharjah, and other emirates receive many visitors from the Gulf countries and elsewhere, Dubai still accounts for the majority of visitors due to its commercial status, expanding service sector, specialized marketing activities, and distinctive exhibitions.

Indicators confirm that the tourism sector in the UAE will be one of the key economic sectors contributing to the GDP, following strenuous efforts by officials to further diversify the economy, upgrade tourist facilities, and improve infrastructure like airports, roads, ports, and power facilities.

A revival of the tourism sector in Egypt

Egypt remains one of the most prominent tourist attractions in the Middle East and North Africa region. However, in the aftermath of the Arab Spring in 2011, many factors prompted a decline in the number of visitors and tourism revenues.

Acts of terrorism have also disrupted the country's attractiveness, as happened in the 1980s when extremists targeted tourist buses and gatherings in the historic areas of Upper Egypt or cities such as Cairo and Alexandria. In Sharm El-Sheikh, Hurghada, and other cities too, tourism was disrupted after the downing of a Russian plane a few years ago and other terrorist acts in Sinai.

However, the Egyptian government is now seeking to revitalise tourism and support private investments in resorts, hotels, and tourist attractions.

AFP
Tourists visit the Great Pyramid of Khufu (Cheops) at the Giza Pyramids necropolis on the southwestern outskirts of Cairo, on March 2, 2023.

Former Egyptian Minister of Tourism Mounir Fakhry emphasised the need to take appropriate measures to develop the tourism sector, signalling a potential increase in tourism revenues from $11 billion to $30 billion over the next three years.

Former Egyptian Minister of Tourism Mounir Fakhry emphasised the need to take appropriate measures to develop the tourism sector, signalling a potential increase in tourism revenues from $11 billion to $30 billion over the next three years.

Egyptian authorities are seeking to increase proceeds in foreign currency from various activities to enable the state to fulfill its obligations, such as paying off its debts and securing vital imports of foodstuffs, materials, and basic commodities.

A promising future seems to await the tourism sector, which is why Arab states must exert their best efforts to revive tourism, develop facilities and establishments, and promote social and economic openness.

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