Market Insights Mobility Travel & Tourism

Hotels - MENA

MENA

Revenue in the Hotels market is projected to reach US$17.89bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 4.45%, resulting in a projected market volume of US$22.24bn by 2029.
In the Hotels market, the number of users is expected to amount to 134.50m users by 2029.
User penetration is projected to be 15.7% in 2024 and 22.2% by 2029.
The average revenue per user (ARPU) is expected to amount to US$199.70.
In the Hotels market, 83% of total revenue will be generated through online sales by 2029.
In global comparison, most revenue will be generated in the United States (US$110,600m in 2024).

Key regions: Vietnam, Indonesia, United Kingdom, Malaysia, Saudi Arabia

Market

Region

Region comparison

Currency

Analyst Opinion

The Hotels market in MENA region is experiencing significant growth and development driven by various factors.

Customer preferences: Customers in the MENA region prefer luxury and high-end hotels that offer top-notch amenities and services. The demand for unique and authentic experiences is also on the rise, leading to an increase in boutique hotels and eco-friendly accommodations.

Trends in the market: In the UAE, there is a growing trend towards luxury resorts and hotels that cater to high-end travelers seeking exclusivity and luxury. Saudi Arabia is witnessing a surge in religious tourism, leading to a higher demand for hotels near holy sites. In Egypt, the focus is on all-inclusive beach resorts, attracting both domestic and international tourists.

Local special circumstances: Countries like Oman and Jordan are investing heavily in tourism infrastructure to attract more visitors, leading to a rise in hotel construction and development. Qatar is gearing up for the FIFA World Cup 2022, driving the construction of new hotels and accommodation options to meet the influx of tourists.

Underlying macroeconomic factors: The stability of oil prices in the region has positively impacted the Hotels market, as disposable incomes have increased, leading to higher spending on travel and accommodation. Government initiatives to promote tourism and diversify the economy have also played a significant role in the growth of the Hotels market in the MENA region.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on bookings, revenues, and sales channels of hotels.

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.