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Middle East Hospitality Industry Growth in 2025

رشد صنعت هتل داری خاور میانه در سال 2025

Strong growth in the GCC hospitality industry in 2024

Booth Media – The Gulf Cooperation Council (GCC) region is set to witness significant growth in the hospitality sector in 2024, according to a new STR report  on behalf of  Arabian Travel Market (ATM) . This growth is accompanied by a 5.4% increase in revenue per available room (RevPAR)  , largely driven by an improvement in hotel occupancy rates to  69.5%  – above pre-pandemic levels.

Government initiatives: the driving force behind tourism development

Two key government initiatives in the region have played a fundamental role in this transformation:

  • Saudi Arabia’s Vision 2030  focuses on economic diversification and infrastructure development.
  •  The UAE’s “We Emirates 2031” campaign
    to enhance the tourism experience. These programs have not only strengthened the region’s appeal as a global tourism hub, but have also contributed significantly to increasing hotel occupancy rates and the GCC’s competitiveness.
Middle East Hospitality Industry Growth in 2025

Middle East Hospitality Industry Growth in 2025

Luxury hotels: Leading the industry’s growth

The luxury hotel sector is recognized as a key driver of growth in the GCC:

  • 2.4% growth   in the average daily rate (ADR) in the region.
  • 19%  of GCC hotel rooms are in the luxury category (a 16% increase over the last decade).
  • The sector’s share is expected   to increase further with the development of 33,000 new luxury rooms in Saudi Arabia.
Middle East Hospitality Industry Growth in 2025

Middle East Hospitality Industry Growth in 2025

ATM 2025; Host to Hospitality Industry Innovations

The Saudi International Travel Exhibition (ATM 2025)  , which will be held in Dubai from April 28 to May 1, is a platform to showcase the latest developments in the industry:

  • The presence of leading brands such as  Four Seasons ,  Mandarin Oriental ,  IHG Hotels & Resorts  , and  Jumeirah International .
  • Specialized panels featuring experts such as  Haitham Matar  (CEO of IHG Middle East) and  Sarah Dugnan  (Director of STR).
  • Exploring key topics such as “redefining hospitality” and the impact of aviation on industry growth.
Middle East Hospitality Industry Growth in 2025

Middle East Hospitality Industry Growth in 2025

The Future of GCC Tourism: Opportunities and Challenges

“Demand for luxury travel is on the rise and the GCC will cement its position as a top global destination by investing in unique experiences,” emphasizes Daniel Curtis , Exhibition Director of ATM Middle East.

Leading brands in ATM 2025:

  • Luxury Hotels: Kempinski, The Peninsula Hotels, Address Hotels + Resorts
  • Hotel companies: Hilton Worldwide, Wyndham Hotels & Resorts, Kerzner International

Conclusion:
With the theme “World Travel: Developing Tomorrow’s Tourism through Advanced Connectivity”, ATM 2025 provides a unique opportunity to network, discover innovations and collaborate with key players in the travel industry. With a combination of government initiatives, luxury hotel developments and international events, the GCC region has a bright future in the global tourism industry.

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