The Middle East is experiencing robust growth in tourism, with many countries seeing a significant rise in international arrivals.

The positive momentum observed in 2024 is expected to continue into 2025, driven by the region’s diverse tourism offerings, which span both luxury and adventure travel.

With the introduction of new air routes and expanded international flight networks, the Middle East is becoming increasingly accessible to travelers from Europe, Asia, and Africa.

This enhanced connectivity plays a crucial role in fueling hotel demand, which is influenced by factors such as regional economic growth, tourism trends, geopolitical stability, infrastructure advancements, and shifting traveler preferences.

The Gulf Cooperation Council (GCC)¹ region, in particular, is experiencing substantial and rapid growth in hotel supply, currently offering around 500,000 hotel rooms and projected to expand to 800,000 rooms over the next five years. International visitation surged in 2024, and this trend is expected to continue in the mid-to-long term.

Dubai remains the GCC leader in terms of occupancy, while Riyadh’s hotel market continues to achieve high average daily rate (ADR), although with somewhat softer occupancy levels. In 2024, Saudi Arabia’s regional market posted a higher RevPAR of $230 USD, driven by an ADR increase to $400 USD.

In contrast, Qatar and Oman have faced challenges, highlighting the diverse market dynamics across the region, where some markets are thriving and others need to adapt to stay competitive. While demand growth and healthy occupancy levels will persist in the GCC region, we anticipate that ADR will likely stabilize in most markets, with only marginal increases in some.

In Africa, most markets are showing signs of growth, with countries such as Morocco, Egypt, and South Africa experiencing continued improvements. In 2025, Africa's hotel market is expected to continue benefiting from increasing demand, fueled by economic expansion, rising tourism, and urbanization.

While regional disparities and challenges remain, the overall outlook is positive. There are significant opportunities in both the luxury and midscale segments, and the growing focus on technology and sustainability will help shape the future of the industry. Navigating challenges such as infrastructure gaps, security concerns, and labor shortages remains vital for future tourism growth across the continent. By the end of 2025, most African countries should return to pre-pandemic tourism levels, with some destinations even surpassing those figures.

For more information about Middle Eastern or African markets or for help making informed investment decisions that align with your goals and risk tolerance, please contact Hala Matar Choufany.

Hala Matar Choufany هلا مطر شوفاني is the HVS President – Middle East, Africa, and South Asia

[1] The Gulf Cooperation Council (also known as the Cooperation Council for the Arab States of the Gulf) comprises Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates.