UAE records sharp rebound in travel & tourism
The travel & tourism industry in the UAE bounced back strongly last year, marking the third fastest growth in the Middle East region, said the World Travel & Tourism Council (WTTC) in a new report.
The sector recovered by 41.1%, supported by a 48.8% increase in revenues from international visitors, according to WTTC’s “Travel and Tourism Economic Impact 2022” report.
The re-scheduled Expo 2020, and international cricket events such as the Indian Premier League and the ICC T20 Cricket World Cup were factors in the boost to the number of inbound arrivals from 11.3 million in 2020 to 12.9 million in 2021.
India was the most important non-Middle East source market, accounting for 9% of all inbound arrivals to the region in 2021.
Middle East
The travel & tourism sector experienced the slowest recovery in 2021 amongst all global regions. After a fall of almost 50% in the sector’s contribution to GDP in 2020, it rebounded by 15.9% compared to the global average of 21.7%. As a result, travel & tourism GDP — at $189 billion — was 41.8% below the 2019 level.
Furthermore, prior to the pandemic, the proportion of spending from international visitors was higher than spending from domestic visitors. However, a 68.9% fall in international visitor spending in 2020 and a modest 4.1% rise in 2021 reduced its share to 39%.
The sector’s contribution to employment increased by 390,000 to reach 5.6 million jobs in 2021, accounting for 7.3% of all the jobs in the region.
Investment in the sector is important for improving the prospects for future growth. Investment in Travel & Tourism accounted for 7.4% of total capital investment in the region’s economy; only the Caribbean saw a higher share. Among all the 185 countries in the analysis, Saudi Arabia had the third largest investment in the sector with $36.8 billion injected into Travel & Tourism.
Outlook
The travel & tourism’s GDP growth in the Middle East is expected to more than double to 36.1%, supported mainly by the estimated 80% increase in spending from international visitors. The upcoming FIFA World Cup 2022 which is being hosted by Qatar is anticipated to attract a significant number of international visitors into the region. The sector’s GDP is forecasted to return to 2019 levels in 2024.
Between 2022 and 2032, the sector’s contribution to the regional economy is estimated to grow at an average rate of 7.7% annually compared to an estimated 2.5% growth for the entire regional economic output.
Saudi Arabia is estimated to have the fastest average annual growth in the region in the next decade, at 11%. By the end of 2032, travel & tourism is also forecasted to create 3.6 million new jobs compared to 2022. – TradeArabia News Service