Driven by rising international and domestic tourist spending, the Middle East’s hospitality sector is experiencing rapid growth. Valued at $286.06 billion in 2024, the market is projected to grow to $487.36 billion by 2032, at a compound annual growth rate (CAGR) of 6.67%.

The sector’s dependence on consumer spending is evident in 2023 data from the World Travel and Tourism Council (WTTC), which reported over $179.8 billion in international visitor spending and more than $205.3 billion in domestic spending across the region.

In response to the sector’s economic impact, governments are increasing efforts to boost tourism and hospitality. One of the major initiatives is Saudi Arabia’s announcement of an $11 billion investment in March, aimed at adding 42,000 hotel rooms and creating around 120,000 new jobs.

As the Middle East’s hospitality sector continues to expand, new trends are emerging that are reshaping the industry regionally and globally.

Duncan O’Rourke, CEO of Accor MEA APAC, Premium, Midscale, and Economy — which manages brands such as Fairmont, Mövenpick, and Novotel — highlights the key forces he believes will define the future of hospitality and travel.

 “The future of hospitality is being shaped by purpose-driven travel, technology, and a growing demand for lifestyle brands,” says O’Rourke. “Today’s travelers, particularly younger generations, are prioritizing sustainability, local culture, wellness, and personalized, tech-enabled experiences.”

THE MIDDLE EASTERN MARKET

The Middle East is undergoing a major transformation, with governments and the private sector aligned in their ambitions and investments, says O’Rourke.”What excites me most is the intentionality with which governments and the private sector are aligned. Saudi Arabia’s Vision 2030, the UAE’s ‘We the UAE 2031’, and Egypt’s tourism roadmap are redefining the region’s global role in travel and hospitality.”

According to him, the region is not only expanding but also actively shaping the future of the hospitality industry, and Accor is proud to be part of that momentum.

Reflecting this shift, the group’s growth strategy across the Middle East and Africa goes beyond simply increasing its footprint. It’s now about aligning with the region’s evolving priorities and traveler expectations.

“We’re responding to new traveler expectations, rising domestic demand, and evolving national tourism agendas,” O’Rourke explains.

In the Middle East — particularly in Saudi Arabia — the emergence of a growing middle class is fueling demand for accessible yet aspirational brands such as ibis, Novotel, Pullman, and Mövenpick.

Across Africa, the focus turns to long-term potential — building on the continent’s resilience and untapped opportunities. “Our approach is grounded in local relevance, regional strength, and a global perspective that positions us to lead the next chapter of hospitality,” he says.

TRENDS IN THE INDUSTRY

O’Rourke highlights wellness and regenerative travel as two major trends shaping the hospitality industry, central to Accor’s guest experience strategy.

“Across the MEA and APAC regions, guests are increasingly seeking balance, purpose, and authentic connection,” he says, citing Mövenpick as a standout example where wellness is woven into the brand’s DNA through nourishment, mindfulness, sustainability, and community engagement.

“Wellness is no longer a secondary offering — it’s the lens through which we are designing the future of hospitality,” O’Rourke adds. “Our brands are leading the way, aligning with what today’s travelers truly seek: meaningful, healthful, and rejuvenating journeys that make a positive impact.”

Alongside wellness, sustainability has emerged as an urgent and non-negotiable priority.

“Sustainability has shifted from being a ‘nice-to-have’ to an operational necessity, with pressure coming from guests, owners, regulators, teams, and the next generation of talent,” O’Rourke explains.

Accor’s sustainability initiatives include food waste reduction programs in 85% of its hotels, with comprehensive baseline data established in the UAE and 84% of hotels in Saudi Arabia. The group has also introduced plant-forward menus, with 12% of its hotels offering more than 25% vegetarian options—a figure that rises to 14% in the UAE—and is steadily phasing out single-use plastics.

Technology and AI also play an increasingly pivotal role in shaping the guest experience.

“For us, technology is a powerful enabler — not a replacement for human connection,” he says. “From AI-powered concierges to contactless check-ins and smart rooms, our innovations are focused on personalizing and simplifying the guest experience, while allowing our teams to dedicate more time to creating meaningful moments.”

He stresses that the key lies in striking the right balance: “It’s about leveraging smart tools to enhance personalization, empower our people, and ensure every interaction remains authentic, intentional, and deeply human. That’s the principle guiding our approach.”

THE ROLE OF CULTURE

O’Rourke emphasizes that preserving authenticity and cultural relevance is essential in the hospitality industry.

“Authenticity isn’t something that can be manufactured — it must be lived, understood, and reflected at every stage of the guest experience,” he says. “In the Middle East, where tradition and modernity coexist, cultural relevance isn’t just appreciated, it’s essential.”

He explains that maintaining authenticity across such a diverse region requires a deep respect for local identities and a commitment to being present rather than prescriptive.

“From design to dining experiences to staff training, everything is crafted with local relevance in mind,” he adds. “Our brands may be global, but they speak the local language — emotionally and culturally. By hiring local talent, sourcing ethically, and investing in community initiatives, we don’t just operate here. We belong here. That’s what true authenticity means.”

O’Rourke also highlights the organization’s internal commitment to nurturing authenticity.

“We champion local authenticity, encouraging teams to bring cultural nuance into how care is expressed. And we build trust with our partners through transparency and shared purpose,” he explains.

He concludes, “When people feel valued, that care extends to our guests, communities, and the planet. That’s how we create genuine human connection, by living our culture of care, every day.”

PREPARING FOR THE FUTURE

The hospitality industry thrives on continual reinvention, evolving in response to shifting trends and emerging values that resonate with guests and communities.

“To future-proof a brand, you must stay rooted in purpose while evolving with your guests,” says O’Rourke. “This is done by deeply understanding our customers, not just through data, emotion, and context.”

He notes that Accor’s loyalty program provides real-time insight into guest behaviors, needs, and aspirations, enabling the company to respond with intention. Whether expanding midscale offerings to meet the demands of Saudi Arabia’s growing middle class or delivering personalized, tech-enabled experiences, the approach is always grounded in relevance.

“Reinvention isn’t about trends. It’s about staying relevant by listening, acting boldly, and combining innovation with empathy,” he adds.