The Middle East region is poised to surpass other global markets in the recovery of travel demand during the April-June quarter, according to a recent report by Rategain, a travel technology firm based in India. The report projects a remarkable 15 percent increase in international arrivals this summer compared to the pre-pandemic peak of 2019, signaling a promising resurgence for the region’s travel industry.
Rategain attributes the Middle East’s robust recovery to its adaptability and innovative approach in responding to changing circumstances. Notably, the United Arab Emirates (UAE) has exemplified this trend by swiftly adjusting its policies and making significant strides in developing its tourism sector. The UAE’s efforts, such as opening its borders to Russian tourists affected by sanctions and signing the Abraham Accord to establish relations with Israel, have yielded positive results. In fact, Dubai experienced a surge in tourism from Russia, with a 63 percent increase in January alone, making Russia the second-largest tourism source market for the city. Additionally, Israel has become Dubai’s fastest-growing tourism source market, with 85,000 Israeli visitors in the first two months of the year.
Middle East is poised to lead the global travel recovery with its impressive surge in demand
Turkey has also demonstrated a flexible approach to attract Russian tourists, resulting in a notable increase of over 100 percent in Russian visitors during the first two months of 2023 compared to the same period last year. This surge in Russian tourism accounted for 13 percent of all foreign tourist arrivals in Turkey during this time. Rategain’s founder, Bhanu Chopra, believes that a policy shift over the past few years has positioned the Middle East as a hub of activity, making it a key driver of travel in the post-pandemic world.
Moreover, Rategain’s report highlights the soaring business travel in the Middle East and Africa region. The report notes that the region is expected to exceed pre-pandemic business travel spending levels, indicating a rapid recovery compared to other regions. The Global Business Travel Association’s Business Travel Index further confirms the region’s strong rebound, with business travel in the Middle East and Africa reaching 86 percent of 2019 levels in 2022.
Turkey emerges as the top leisure destination, while the UAE leads in business arrivals, according to Rategain’s report. Foreign arrivals in Turkey for the upcoming quarter are projected to be 40-50 percent higher than the same period last year, showcasing the country’s swift recovery. Turkey’s tourism revenue has also seen significant growth, rising by 32 percent year-over-year in the first three months of this year.
The report highlights that the recovery in the Middle East travel market has been driven by a demand for leisure travel from the U.S. and Europe, while business travel demand originates primarily from the Asia Pacific region. Travelers from the U.S. account for a significant portion of hotel booking searches in the region, showcasing their interest in visiting the Middle East.
As the market recovers, the report emphasizes the importance of price and proximity in shaping travel preferences. The Middle East region, with its favorable travel expenses compared to the Western region contending with inflationary concerns, has emerged as a profitable destination. Furthermore, the report notes an increase in group, family, and couple vacations, with travelers opting for planned advance bookings and shorter trips.
With travelers now seeking personalized, independent, and safe travel experiences, the report emphasizes the need for travel organizations to understand and respond quickly to these evolving preferences. Bhanu Chopra, Rategain’s founder, believes that the emergence of new players in the Middle East travel industry will foster healthy competition and further accelerate the region’s growth.
Overall, the Middle East is poised to lead the global travel recovery with its impressive surge in demand.
Photo credits: Vanishing visitors: an open-air market in Sharm el-Sheikh, Egypt. Photograph: Adina Tovy/Getty Images/Lonely Planet Image/Guardian