Research highlights travel trends and market growth in the Middle East

Fresh insights into Middle East travel trends and market opportunities were unpacked at Arabian Travel Market (ATM), held from April 28 to May 1, 2025, at the Dubai World Trade Centre (DWTC). Research presented by Tourism Economics, Trip.com Group, and VIDEC Consultants spotlighted demand surges in the leisure, luxury, MICE, and online travel sectors.
Source: Supplied | Virendra Jain, Founder and CEO, Videc Consultants
Source: Supplied | Virendra Jain, Founder and CEO, Videc Consultants

Tourism Economics, an Oxford Economics company, presented insights from its ATM Trends Report: Leisure, luxury and MICE – leading trends for the Middle East. The research analyses key forces driving the region’s tourism sector, including growth in visits, overnight stays, and traveller spend.

Dave Goodger, managing director EMEA at Tourism Economics, comments: "Global travel will hit new record levels this year, converging back on the pre-pandemic trend, with international and domestic demand rebounding across all regions of the world.

"We are seeing people prioritising travel over many other aspects of spending, with the Middle East being a popular destination. In the GCC, growth is outpacing the global average and travel in the region is largely being driven by international demand, with over 85% of the expected growth in Middle East accommodation demand coming from international travel."

Evolving traveller preferences drive niche growth

Trip.com Group also shared perspectives on evolving travel preferences at the session Partnering for progress: Unlocking tourism growth through innovative collaborations. The company identified rising interest in entertainment, educational and elderly travel experiences as growth areas.

Jane Sun, CEO of Trip.com Group, says: "The Middle East presents tremendous growth opportunities and serves as a crucial node connecting Europe, Africa, and Asia. Convenient entry policies, increased direct flights, and robust investments in tourism have contributed to its rapid recovery.

"With our insights into new consumer trends and our dedication to business and technological innovation, we look forward to strengthening our collaboration with regional partners to attract global travellers and bring forth a more connected and prosperous future."

Digital travel bookings surge in UAE, Saudi Arabia and India

Consultancy firm VIDEC revealed findings from its Travel Market Sizing and OTA Benchmarking study, examining market opportunities for online travel agencies (OTAs) in the UAE, Saudi Arabia and India up to 2028. The study highlights future growth projections, key distribution trends, and consumer behaviour across air and hotel bookings.

Virendra Jain, founder and CEO of VIDEC Consultants, says: "UAE, Saudi Arabia and India have a majority young and digitally connected population with purchasing power that’s conducive for the rapid growth of online travel. The UAE is an ultimate global village, and its cosmopolitan nature, as well as its recognition as a major shopping centre, makes it a favoured destination for both Saudis and Indians.

"All three markets enjoy cultural and religious affinity, and enviable air connectivity. Religious, luxury, VFR and wellness are some of the primary tenets that would continue to perpetuate high-growth for this travel and tourism corridor."

The research forecasts the UAE’s total air market will grow from $4.2bn in 2024 to $5.4bn by 2028, a 32% increase from 2019. Online booking channels are gaining ground, with OTAs capturing $679m in online air ticket sales for 2024 — a 20% increase over the previous year. Direct airline websites and apps remain strong, accounting for 56% of online air booking value.

While the UAE’s OTA landscape is competitive, digital adoption and strong air connectivity continue to drive market growth, with airlines enhancing their direct booking platforms and loyalty programmes to strengthen customer engagement.

ATM focuses on future tourism connectivity

ATM 2025 hosted over 55,000 attendees from 166 countries and more than 2,800 exhibitors.

The event’s 32nd edition centred on the theme Global Travel: Developing Tomorrow’s Tourism Through Enhanced Connectivity, exploring how collaboration across industries, borders and communities will shape the future of global tourism.


 
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