Regional hospitality growth under the spotlight at Arabian Travel Market 2025

The hospitality sector in the GCC is experiencing a strong resurgence, with new data compiled by STR on behalf of Arabian Travel Market (ATM) revealing significant growth across the region in 2024.

According to the report, aggregated Revenue per Available Room (RevPAR) across Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE last year rose by 5.4% compared to 2023, fuelled primarily by an increase in occupancy rates. In 2024, occupancy rates across the GCC reached 69.5%, surpassing the levels observed prior to the pandemic, underscoring the region’s successful efforts to establish itself as a world-class tourism and investment hub.

Key government initiatives, notably Saudi Vision 2030 and the UAE’s ‘We the UAE 2031’ campaign have played a pivotal role in this transformation by promoting economic diversification, enhancing infrastructure, and elevating the overall tourism experience. These efforts aim to boost occupancy and establish the GCC as a competitive player in the global tourism landscape.

The research also found that Average Daily Rate (ADR) grew by 2.4% in the GCC last year, with the luxury hotel rooms segment significantly contributing to ADR growth. The region has added more than 35,000 hotel rooms over the last 10 years, with 19% of rooms now belonging to the luxury category, growing from 16% a decade ago.

STR’s report suggests that hotel rooms under all phases of development will continue to be dominated by the luxury segment, stating that with more than 33,000 rooms under development, Saudi Arabia alone has more luxury rooms in the pipeline than currently exist in the country.

Commenting on STR’S latest research, Danielle Curtis, Exhibition Director ME, Arabian Travel Market, said: “Luxury hospitality continues to be a driving force behind the region’s tourism growth, offering exceptional experiences that attract high-spending travellers from around the world.

“Luxury hotel exhibitors will be a key part of ATM 2025, showcasing the innovative hospitality concepts that are redefining the industry. As demand for premium travel rises, the GCC is well-positioned to strengthen its reputation as a global luxury tourism hotspot.”

ATM 2025 will showcase a diverse array of leading hospitality and luxury brands, including IHG Hotels & Resorts, Jumeirah International, Address Hotels + Resorts, Mandarin Oriental, Four Seasons, Kempinski, Kerzner International, The Peninsula Hotels, Hilton Worldwide and Wyndham Hotels & Resorts Middle East. The event will also feature exclusive insights from top industry experts, including Haitham Mattar, Managing Director across India, Middle East & Africa, IHG Hotels & Resorts, who are shaping the future of the region’s hospitality sector.

IHG’s Managing Director across India, Middle East & Africa, Haitham Mattar said: “Several markets across the GCC region are experiencing an exciting phase of growth in tourism and hospitality, driven by key government initiatives resulting in an increase in demand across hotel segments.

“Historically, markets in the GCC region have been driven by luxury hospitality and demand is set to rise owing to factors such as development of giga and mega projects, increased business activity and rise in leisure travel.

“As we bring and grow more world class brands in the region including Regent, Six Senses, InterContinental, Kimpton, Vignette Collection, Hotel Indigo, we are committed to contributing to the dynamic hospitality landscape, offering elevated experiences for a wide range of travellers.

“As we look forward to ATM 2025, we anticipate a great opportunity to build meaningful connections and showcase how IHG is helping shape the future of hospitality in the region.”

During the event, Mattar will host a session titled “Hospitality redefined, find your competitive edge”, which will address the challenges and opportunities shaping growth across the MEA and Southwest Asia regions. In addition, Sarah Duignan, Director, Client Relationships, STR will dive further into how the various GCC markets are individually contributing to the overall GCC success whether driven by occupancy, ADR or both whilst Jeremy Bowen, CEO, Cirium will discuss passenger trends, airlift and shaping the travel industry’s broader growth in the session “Connecting the dots… benchmarking aviation and hospitality.”

ATM 2025, which will take place from 28 April to 1 May, brings together travel professionals from around the world to share exclusive insights and visions on the future of the industry. Across four days, attendees will have the opportunity to meet with leading industry experts, forge new connections, and uncover fresh perspectives. 

In line with this edition’s theme, ‘Global Travel: Developing Tomorrow’s Tourism Through Enhanced Connectivity’, Arabian Travel Market will shine a spotlight on the innovators reshaping the sector. Bringing together professionals and industry leaders from the leisure, business events (MICE), luxury and corporate travel sectors, ATM provides a platform for networking, knowledge sharing, and business opportunities, allowing participants to explore the latest trends, innovations, and developments worldwide.

Held in conjunction with Dubai World Trade Centre, ATM 2025’s strategic partners include Dubai’s Department of Economy and Tourism (DET), Destination Partner; Emirates, Official Airline Partner; IHG Hotels & Resorts, Official Hotel Partner; and Al Rais Travel, Official DMC Partner.

The latest ATM news stories are available at https://hub.wtm.com/category/press/atm-press-releases/.

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Last Updated on 2 days by News Desk 1