Key regions: Malaysia, Europe, Singapore, Vietnam, United States
In recent years, the Travel & Tourism market in the GCC has experienced significant growth and development, driven by various factors influencing consumer behavior and market dynamics.
Customer preferences: Travelers in the GCC region are increasingly seeking unique and experiential travel opportunities, moving away from traditional tourist attractions towards more authentic and culturally immersive experiences. This shift in preferences has led to a rise in demand for boutique hotels, local guides, and off-the-beaten-path destinations. Additionally, there is a growing interest in sustainable and eco-friendly travel options among environmentally conscious consumers.
Trends in the market: In the GCC region, one notable trend is the emphasis on luxury travel experiences. High-end hotels, exclusive resorts, and personalized services cater to the affluent travelers in the region, contributing to the overall growth of the luxury travel segment. Moreover, medical tourism is gaining traction in countries like the UAE and Oman, with state-of-the-art medical facilities and wellness retreats attracting visitors seeking healthcare services combined with leisure activities.
Local special circumstances: Each country in the GCC has its unique offerings and challenges in the Travel & Tourism market. For example, the UAE is known for its world-class shopping festivals and iconic landmarks like the Burj Khalifa, while Oman attracts nature enthusiasts with its stunning landscapes and cultural heritage. Saudi Arabia, on the other hand, is undergoing a significant transformation with the development of tourist attractions like NEOM and the ancient city of AlUla, opening up new opportunities for the travel industry.
Underlying macroeconomic factors: The growth of the Travel & Tourism market in the GCC can be attributed to several macroeconomic factors, including government initiatives to diversify the economy, infrastructure development, and efforts to promote the region as a global travel hub. The stability of oil prices, currency exchange rates, and geopolitical developments also play a crucial role in shaping the market dynamics and influencing tourist inflows.
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.
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