Hotel industry in GCC - statistics & facts

According to estimates for 2023, the market size of the hotel industry worldwide was valued at almost 4.7 trillion U.S. dollars. However, the global hotel and accommodation industry experienced a strong economic impact through the global corona pandemic. The hospitality business in the Gulf Cooperation Council (GCC) countries is steadily recovering despite the COVID-19 pandemic. This expansion reflects governments' successful diversification strategies away from oil and gas earnings, as well as their belief in the region's tourist sector growth.

Luxury hotels in UAE

The United Arab Emirates, which has attempted to promote a more upscale tourism experience, owns much of the GCC luxury hotel supply. Planned luxury hotel projects in the emirate of Dubai, the UAE’s most well-developed tourist destination, exceeded 50 percent of pipeline hotel projects in 2022. On the other hand, the UAE’s hotel industry's eagerness to adapt to emerging global trends, such as promoting cultural and authentic experiences, sustainability, technological integration, wellness, and health-conscious offerings, makes it well-positioned to satisfy visitors' shifting demands.

Saudi Arabia’s hotel industry transformation

Driven by the country's Vision 2030 initiative, which aims to diversify the economy and boost tourism, Saudi Arabia has seen a surge in hotel construction and development. Riyadh was leading in the number of hotel projects in 2022. Major cities like Riyadh, Jeddah, and Mecca have become hotspots for luxury hotels, with international chains making significant investments. Saudi Arabia is also expanding their hospitality industry to cater to a broader range of tourists, including business, leisure, and religious tourists, making it more accessible and appealing to a global audience. In 2021, there were over seven million tourists visiting Saudi Arabia’s top religious sites for Hajj, Umrah, and visiting Madinah. With a focus on modernization, quality, and cultural authenticity, Saudi Arabia's hotel industry is set to play a major role in the country's economic diversification initiatives and its emergence as a top tourism destination in the GCC region.
This text provides general information. Statista assumes no liability for the information given being complete or correct. Due to varying update cycles, statistics can display more up-to-date data than referenced in the text.
Published by Salma Saleh, Sep 8, 2023

Key insights

City with highest ADR of hotels in MENA
Jeddah
City leading in the y-o-y hotel occupancy change in MENA
Makkah
Leading city in hotel occupancy rate MENA
Dubai
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Total number of rooms in hotels and similar establishments in the United Arab Emirates from 2008 to 2021 (in 1,000s)

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Hotel occupancy change rate across Riyadh in Saudi Arabia from financial years 2015 to 2022

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Hotel occupancy change rate across Riyadh in Saudi Arabia FY 2015-2022

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Hotel ADR change across Dubai in United Arab Emirates FY 2015 - Q3 2021

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