The GCC region has implemented many measures to increase tourist inflow and hospitality services, including unified GCC visas, Dubai’s five-year multiple-entry visa, and Saudi Arabia’s instant e-visa options.

Investments have been made in transport infrastructure. This includes new airports, expansions of existing aviation facilities, and a regional rail network. 

These efforts got the desired result. Alpen Capital’s report forecasts revenue for the GCC hospitality sector to grow at a CAGR of 7.5% from 2023 to 2028, reaching approximately $48.1 billion by 2028.  

“The GCC is solidifying its global tourism footprint by successfully hosting major MICE cultural and sporting events. Anticipated to attract millions of tourists, these events are poised to bolster the growth of the hospitality industry,” the report noted.  

Sameena Ahmed, managing director at Alpen Capital, said, “The sector’s growth is expected to be spurred by economic recovery, thriving tourism, and concerted efforts of governments to reduce reliance on hydrocarbon revenues.” 

Saudi Arabia’s hospitality revenue is expected to grow by 7.5% from 2023 to 2028, driven by government-led initiatives.

The report projected that the UAE will grow at a CAGR of 6.9% from 2023 to 2028, supported by infrastructure modernization and less restricted tourist visa rules. Qatar, Kuwait, Oman, and Bahrain are also expected to witness higher growth rates. 

The sector’s key operating metrics are expected to grow, with the occupancy rate reaching 69.3% in 2028, the average daily rate jumping at a CAGR of 1.9%, and revenue per available room growing at a CAGR of 3.3% over the same period.

Digitalization has also played a key role in the sector, with operators adopting artificial intelligence, machine learning, cloud platforms, and mobile applications to provide seamless and personalized user experiences. Sustainable tourism and responsible travel is gaining ground across the GCC’s hospitality sector.