Travel & Tourism - Bahrain

Bahrain

The Travel & Tourism market in Bahrain is expected to experience a steady growth in revenue, projecting to reach US$147.70m by 2024, with an annual growth rate of 3.25% from 2024 to 2029.
This growth is expected to result in a projected market volume of US$173.30m by 2029.
The largest market in the Bahraini market is the Package Holidays market, which is projected to reach a market volume of US$54.32m by 2024.
By 2029, the number of users in the Package Holidays market is expected to amount to 343.50k users, with a user penetration of 29.6% in 2024, which is projected to hit 32.0% by 2029.
The average revenue per user (ARPU) is expected to be US$333.30.
In terms of online sales, the Bahraini Travel & Tourism market is expected to generate 75% of total revenue by 2029.
In comparison to other countries, United States is projected to generate the most revenue in the Travel & Tourism market, with a projected revenue of US$214bn by 2024.
Bahrain's tourism industry is experiencing growth due to the government's focus on developing cultural and heritage sites.

Key regions: Malaysia, Europe, Singapore, Vietnam, United States

Definition:

The Travel & Tourism market encompasses a diverse range of accommodation services catering to the needs and preferences of travelers. This dynamic market includes package holidays, hotel accommodations, private vacation rentals, camping experiences, and cruises.

Structure:

The market consists of five further markets.

The Cruises market covers multi-day vacation trips on a cruise ship. The Cruises market encompasses exclusively passenger ticket revenues.
The Vacation Rentals market comprises of private accommodation bookings which includes private holiday homes and houses as well as short-term rental of private rooms or flats.
The Hotels market includes stays in hotels and professionally run guest houses.
The Package Holidays market comprises of travel deals that normally contain travel and accommodation sold for one price, although optional further provisions can be included such as catering and tourist services.
The Camping market includes bookings at camping sites for pitches using tents, campervans, or trailers. These can be associated with big chains or privately managed campsites.

Additional Information:

The main performance indicators of the Travel & Tourism market are revenues, average revenue per user (ARPU), users and user penetration rates. Additionally, online and offline sales channel shares display the distribution of online and offline bookings. The ARPU refers to the average revenue one user generates per year while the revenue represents the total booking volume. Revenues are generated through both online and offline sales channels and include exclusively B2C revenues and users for the above-mentioned markets. Users represent the aggregated number of guests. Each user is only counted once per year. Additional definitions for each market can be found within the respective market pages.

The booking volume includes all booked travels made by users from the selected region, independent of the departure and arrival. The scope includes domestic and outbound travel.

Prominent players in this sector include online travel agencies (OTAs) like Expedia and Opodo, as well as tour operators such as TUI. Specialized platforms like Hotels.com, Booking.com, and Airbnb facilitate the online booking of hotels and private accommodations, contributing significantly to the market's vibrancy.

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Analyst Opinion

The Travel & Tourism market in Bahrain is experiencing significant growth and development.

Customer preferences: Travelers in Bahrain are increasingly seeking unique and authentic experiences, moving away from traditional tourist attractions towards more immersive cultural activities. This shift in preferences has led to a rise in demand for personalized tours, local cuisine experiences, and interactions with the local community.

Trends in the market: One noticeable trend in the Bahraini travel market is the growing popularity of eco-tourism and sustainable travel practices. Travelers are becoming more environmentally conscious and are actively seeking destinations and accommodations that prioritize sustainability. This trend has led to an increase in eco-friendly hotels, tours focused on conservation efforts, and initiatives to preserve the natural beauty of the country.

Local special circumstances: Bahrain's strategic location in the Gulf region, along with its rich history and cultural heritage, sets it apart as a unique travel destination. The country offers a blend of modernity and tradition, with attractions ranging from ancient archaeological sites to bustling souks and luxury shopping malls. Additionally, Bahrain's reputation for safety and hospitality makes it an attractive choice for international tourists looking to explore the Middle East.

Underlying macroeconomic factors: The growth of the Travel & Tourism market in Bahrain can be attributed to several macroeconomic factors, including government initiatives to promote the sector, investments in infrastructure development, and efforts to diversify the economy. The country's stable political environment, ease of doing business, and strategic marketing campaigns have also played a crucial role in attracting visitors and driving growth in the tourism industry.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on bookings, revenues, and sales channels of hotels, vacation rentals, cruises, package holidays, and camping.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on a specific rationale for each market. As a basis for evaluating markets, we use financial reports, the Global Consumer Survey, third-party studies and reports, data from industry associations (e.g., UNWTO), and price data of major players in respective markets. To estimate the number of users and bookings, we furthermore use data from the Statista Consumer Insigths Global survey. In addition, we use relevant key market indicators and data from country-specific associations, such as country-related GDP, demographic data (e.g., population), tourism spending, consumer spending, internet penetration, and device penetration. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, ARIMA, which allows time series forecasts, accounting for stationarity of data and enabling short-term estimates. Additionally, simple linear regression, Holt-Winters forecast, and exponential trend smoothing methods are applied. A k-means cluster analysis allows for the estimation of similar countries. The main drivers are tourism GDP per capita and respective price indices.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change.