Travel & Tourism - Western Asia

Western Asia

In Western Asia, the Travel & Tourism market is anticipated to witness a significant growth in revenue, with an estimated value of US$19.48bn by 2024.
The market is expected to maintain an annual growth rate of 4.50% between 2024 and 2028, resulting in a projected market volume of US$23.23bn by 2028.
Among the markets, the Hotels market is expected to be the largest, with a projected market volume of US$9.58bn in 2024.
The number of users in this market is expected to reach 48.10m users by 2028, with a user penetration rate of 26.9% in 2024 and an expected increase to 29.9% by 2028.
The average revenue per user (ARPU) is expected to be US$325.30.
Additionally, it is projected that 82% of the total revenue in the Travel & Tourism market will be generated through online sales by 2028.
It is important to note that United States is expected to generate the most revenue in this market, with a projected value of US$199bn in 2024 when compared to other countries globally.
Western Asia's travel and tourism industry has been impacted by political instability, but the region's rich cultural heritage continues to attract visitors.

Key regions: Malaysia, Europe, Singapore, Vietnam, United States

Definition:

The Travel & Tourism market encompasses a diverse range of accommodation services catering to the needs and preferences of travelers. This dynamic market includes package holidays, hotel accommodations, private vacation rentals, camping experiences, and cruises.

Structure:

The market consists of five further markets.

The Cruises market covers multi-day vacation trips on a cruise ship. The Cruises market encompasses exclusively passenger ticket revenues.
The Vacation Rentals market comprises of private accommodation bookings which includes private holiday homes and houses as well as short-term rental of private rooms or flats.
The Hotels market includes stays in hotels and professionally run guest houses.
The Package Holidays market comprises of travel deals that normally contain travel and accommodation sold for one price, although optional further provisions can be included such as catering and tourist services.
The Camping market includes bookings at camping sites for pitches using tents, campervans, or trailers. These can be associated with big chains or privately managed campsites.

Additional Information:

The main performance indicators of the Travel & Tourism market are revenues, average revenue per user (ARPU), users and user penetration rates. Additionally, online and offline sales channel shares display the distribution of online and offline bookings. The ARPU refers to the average revenue one user generates per year while the revenue represents the total booking volume. Revenues are generated through both online and offline sales channels and include exclusively B2C revenues and users for the above-mentioned markets. Users represent the aggregated number of guests. Each user is only counted once per year. Additional definitions for each market can be found within the respective market pages.

The booking volume includes all booked travels made by users from the selected region, independent of the departure and arrival. The scope includes domestic and outbound travel.

Prominent players in this sector include online travel agencies (OTAs) like Expedia and Opodo, as well as tour operators such as TUI. Specialized platforms like Hotels.com, Booking.com, and Airbnb facilitate the online booking of hotels and private accommodations, contributing significantly to the market's vibrancy.

For further information on the data displayed, refer to the info button right next to each box.

Market

Region

Region comparison

Currency

Analyst Opinion

The Travel & Tourism market in Western Asia is experiencing significant growth and development, driven by various factors shaping consumer preferences and local special circumstances in the region.

Customer preferences: Travelers in Western Asia are increasingly seeking unique and authentic experiences, moving away from traditional tourist attractions towards off-the-beaten-path destinations. There is a growing demand for sustainable and eco-friendly tourism options, reflecting a global trend towards responsible travel practices.

Trends in the market: In countries like the United Arab Emirates and Qatar, luxury tourism continues to thrive, with a focus on high-end accommodations, fine dining, and exclusive experiences. On the other hand, destinations like Jordan and Lebanon are gaining popularity for their rich cultural heritage and historical sites, attracting history enthusiasts and cultural travelers.

Local special circumstances: Western Asia benefits from its strategic location between Europe, Asia, and Africa, making it a hub for international travel and transit. Countries like Turkey and the UAE have invested heavily in infrastructure and tourism projects to position themselves as key players in the global travel market. Additionally, the region's diverse landscapes, from deserts to mountains to coastlines, offer a wide range of activities for tourists to enjoy.

Underlying macroeconomic factors: The stability of oil prices has a significant impact on the economies of many countries in Western Asia, influencing consumer spending power and government investment in tourism initiatives. Economic diversification efforts in countries like Saudi Arabia are driving growth in sectors beyond oil, including tourism, as governments look to reduce dependence on traditional industries. Additionally, geopolitical factors and regional stability play a crucial role in attracting tourists and investor confidence in the region.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on bookings, revenues, and sales channels of hotels, vacation rentals, cruises, package holidays, and camping.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on a specific rationale for each market. As a basis for evaluating markets, we use financial reports, the Global Consumer Survey, third-party studies and reports, data from industry associations (e.g., UNWTO), and price data of major players in respective markets. To estimate the number of users and bookings, we furthermore use data from the Statista Consumer Insigths Global survey. In addition, we use relevant key market indicators and data from country-specific associations, such as country-related GDP, demographic data (e.g., population), tourism spending, consumer spending, internet penetration, and device penetration. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, ARIMA, which allows time series forecasts, accounting for stationarity of data and enabling short-term estimates. Additionally, simple linear regression, Holt-Winters forecast, and exponential trend smoothing methods are applied. A k-means cluster analysis allows for the estimation of similar countries. The main drivers are tourism GDP per capita and respective price indices.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change.