Tourexpi
Travel & Tourism in the Middle East is facing a
significant short-term setback as geopolitical tensions disrupt airspace and
international travel flows. According to new forecasts from the World Travel
& Tourism Council (WTTC), the region will be the only one worldwide to
record a decline in Travel & Tourism GDP in 2026.
WTTC expects the sector’s economic contribution to
fall from $386 billion in 2025 to $330 billion this year, a contraction of 14.5
percent. Beyond the immediate disruption, however, the organisation sees a
markedly different long-term trajectory, forecasting that the Middle East will
become the fastest-growing Travel & Tourism region globally over the coming
decade.
Aviation disruption weighs on 2026 performance
The current downturn reflects the Middle East’s
exposure to geopolitical conflict and resulting disruptions to aviation. The
region is one of the world’s most important air transport hubs, handling around
14 percent of international passengers – approximately one in every seven
international travellers.
Changes to airspace availability and travel flows
therefore have consequences extending well beyond the countries directly
affected by conflict.
“The Middle East is facing a challenging period, and
Travel & Tourism is often among the first sectors to feel the impact of
geopolitical disruption,” said Gloria Guevara, President & CEO of WTTC.
“But history repeatedly shows that our sector is remarkably resilient, and few
regions have demonstrated that resilience more clearly than the Middle East.”
Tourism economy could reach $605 billion by 2036
Despite the expected decline in 2026, WTTC forecasts
strong growth over the following decade. Travel & Tourism GDP in the Middle
East is projected to increase at an average annual rate of 6.3 percent between
2026 and 2036.
If that forecast materialises, the sector will
contribute around $605 billion to the regional economy by 2036.
Saudi Arabia, the United Arab Emirates, Oman and Qatar
are expected to be the principal drivers of this expansion. Together, the four
countries generated $272 billion in Travel & Tourism GDP in 2025. By 2036,
their combined contribution is forecast to reach $435 billion, an increase of
more than $163 billion.
Saudi Arabia and UAE lead regional transformation
Saudi Arabia remains central to the Middle East’s
tourism expansion. Travel & Tourism currently accounts for 14.1 percent of
the country’s GDP, while international visitor spending is expected to more
than double over the next decade.
Investment continues to play a major role. Saudi
Travel & Tourism investment increased by 19.4 percent in 2025, supported by
Vision 2030, regulatory reforms and a pipeline of large tourism developments.
The UAE, meanwhile, represents one of the region’s
most established tourism economies. Travel & Tourism contributes 11.9
percent of GDP and supports 13.6 percent of total employment. International
visitor spending amounts to almost $57 billion.
Oman and Qatar add to growth prospects
Oman’s Travel & Tourism economy is forecast to
expand from $7.9 billion to $12 billion by 2036 as investment in tourism
infrastructure and destination development continues.
Qatar also remains highly dependent on international
tourism revenues. According to WTTC, visitor spending accounts for 94.1 percent
of the country’s services exports, one of the highest tourism export
concentrations in the region.
Across the four markets, governments continue to
invest in airports, transport connections, accommodation, visitor experiences
and destination development as tourism assumes a larger role in economic
diversification strategies.
WTTC expects resilience to drive recovery
WTTC argues that previous crises demonstrate the
tourism sector’s ability to recover rapidly once disruption subsides,
particularly when governments and businesses coordinate policy, communication
and investment.
“The governments across this region have made
long-term commitments to Travel & Tourism through investment, connectivity,
infrastructure, and economic diversification. Those foundations remain firmly
in place,” Guevara said.
While the immediate outlook remains heavily influenced
by geopolitical developments, WTTC expects these structural investments to
underpin the recovery. “The long-term picture is clear: the Middle East is set
to be the world's fastest-growing Travel & Tourism region,” Guevara added.
Image Credit: © AI generated illustration
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