The outlook for the MENA region is still positive overall with most markets expected to improve on 2021’s performance.

The lessons learned from earlier in the pandemic and the additional care taken with regards to Omicron have helped mitigate its expected long-term impact on recovery. 

The priority for most markets in 2022 remains measures to minimise a resurgence of COVID-19, building consumer confidence in key source markets. For select markets, the principal challenge will be the managing demand interruptions from key markets in the CIS regions. 

For all open markets the return of leisure demand remains an important factor. Changes in operational practices for international corporate travel are likely to place larger importance on both establishing a stable base of domestic and leisure demand.

Mega events such as the EXPO 2020 and the FIFA World Cup Qatar 2022 are expected to result in a significant influx of demand for their host cities and result in a halo effect for surrounding markets. 

Consistent government support for the tourist and travel industries throughout the pandemic will continue to be a key factor in the ongoing recovery. Initiatives focused on the domestic demand supported the market during heightened travel restrictions but is also expected to provide tangible improvements to the focus of domestic travel in markets such as Ras al Khaimah and Riyadh.

Market Highlights:

UAE – The impact of Expo 2020 has had a positive effect on all markets in the UAE, while the FIFA World Cup Qatar 2022 is expected to result in overspill demand to the key transit hubs in Dubai and Abu Dhabi. Rising instability in key CIS source markets is expected to suppress demand. However, the diversity of source markets for the UAE may be leveraged at a lower price positioning to mitigate the impact.

KSA – The Riyadh Season and growing consumer confidence has benefitted both the Riyadh and Jeddah markets. While positive indications on the return of pilgrim demand has improved the outlook for the Makkah and Madinah markets. The rising price of oil has historically led to increased corporate demand in Al Khobar/Dammam and will be monitored as the year progresses.

Egypt – The new attractions in Cairo are expected to help attract visitation, along with the opening of new supply. The increased travel uncertainty from the key CIS markets is expected to have the largest impact on the Red Sea markets for Sharm El Sheikh and Hurghada.

Qatar – Doha has maintained a high level of demand across 2021 exceeding 2019 levels. Further improvement is expected in 2022 with the FIFA World Cup Qatar expected to be a key driver in the final quarter of the year.

Regional Markets – As of March, Covid restrictions have eased for inbound travelers in Jordan, including the lifting of PCR testing requirements. Given the large tour-driven demand in the market, this is expected to improve demand later in the year.