Three Arab countries, Saudi Arabia, the UAE, and Egypt, are investing a combined total of $1.7 trillion in tourism projects as part of their efforts to attract 160 million tourists annually by 2030. These projects encompass both hotel and residential developments, with these three countries accounting for 90% of the total investments in the Middle East region, which amounts to $1.9 trillion.
The Middle East tourism sector has fully recovered from the impact of the COVID-19 pandemic, surpassing pre-pandemic levels in terms of revenues and employment rates. In 2023, the sector’s contribution to the region’s GDP increased by 47% to reach $107 billion, the highest percentage among global regions. This growth also resulted in the creation of approximately one million new jobs, marking a 14.5% increase in employment.
Several factors have contributed to the industry’s success, including:
- The launch of new projects
- Simplified visa issuance processes
- Robust marketing campaigns
- Green initiatives
- A focus on innovation and technology
- Enhanced collaboration with aviation sector stakeholders
- The growth of the healthcare industry
- The attraction of foreign direct investments
HVS Middle East reported a fivefold increase in the number of high-quality hotel rooms in the region, rising from 100,000 rooms in 2010 to 540,000 rooms by 2022. An additional 180,000 rooms are expected to be added in the next five years.
Colliers, an international real estate consulting firm, noted that several large hotel deals are currently in advanced negotiation stages, with the potential for the sale or change of ownership of several hotel projects in the coming months.
The following are some of the tourism projects underway in Saudi Arabia, the UAE, and Egypt:
Saudi Arabia:
- The Red Sea Project: A $50 billion development that will create a world-class tourism destination on the Red Sea coast, including luxury hotels, resorts, and residential properties.
- Neom: A $500 billion smart city project that will be home to a variety of tourism attractions, including a ski resort, a Jurassic Park-themed entertainment center, and a luxury underwater hotel.
- Amaala: A $28 billion luxury tourism destination on the Red Sea coast, featuring luxury hotels, resorts, and residential properties.
UAE:
- Expo City Dubai: The site of the 2020 World Expo, which will be transformed into a permanent tourism destination with a variety of attractions, including the Al Wasl Plaza, the Garden of the Future, and the Dubai Millennium Falcon.
- Dubai Frame: A 150-meter-tall rectangular frame that offers stunning views of the city.
- Louvre Abu Dhabi: A world-class museum that houses a collection of art and artifacts from around the world.
Egypt:
- Grand Egyptian Museum: The world’s largest archaeological museum, which is scheduled to open in 2023.
- Sphinx International Airport: A $9 billion airport that is currently under construction and is expected to open in 2024.
- City of Arts and Culture: A $10 billion project that will create a new cultural hub in Cairo, including museums, theaters, and libraries.
Saudi Arabia, UAE, Egypt Invest $1.7 Trillion in Tourism
The investments in these tourism projects are expected to have a significant impact on the economies of Saudi Arabia, the UAE, and Egypt, creating new jobs and generating billions of dollars in revenue. The projects will also help to position the Middle East as a leading global tourism destination.
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