Travel & Tourism - Kuwait | Statista Market Forecast

By 2024, the Travel & Tourism market in Kuwait is expected to generate a revenue of US$973.90m, with an estimated annual growth rate of 2.97% between 2024 and 2029, which would result in a projected market volume of US$1.13bn by 2029.
The Hotels market is the largest market, with an expected revenue of US$353.70m by 2024.
The users in the Hotels are projected to reach 1.81m users by 2029, with a user penetration rate of 50.4% in 2024, predicted to rise to 56.8% by 2029.
The average revenue per user (ARPU) is expected to be US$444.50.
By 2029, 85% of the total revenue in the Travel & Tourism market of Kuwait is expected to be generated through online sales.
In comparison to other countries, United States is predicted to generate the highest revenue of US$214bn in 2024.
Kuwait's travel and tourism market is heavily reliant on luxury and business travel, with a focus on high-end hotels and exclusive experiences.

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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Bookings directly via the website of the service provider, travel agencies, online travel agencies (OTAs) or telephone

Business trips
Other forms of trips (e.g. excursions, etc.)

The Travel & Tourism market in Kuwait is witnessing a significant growth trajectory with various factors contributing to its development.

Customer preferences: Travelers in Kuwait are increasingly seeking unique and authentic experiences, driving the demand for personalized and tailor-made travel packages. They are also showing a preference for sustainable and eco-friendly tourism options, aligning with global trends towards responsible travel practices.

Trends in the market: One notable trend in the Kuwaiti travel market is the rising popularity of domestic tourism. As more residents explore and appreciate the beauty of their own country, there is a growing demand for local travel experiences and accommodations. Additionally, there is a noticeable increase in medical tourism, with Kuwait emerging as a hub for high-quality healthcare services attracting visitors from neighboring countries.

Local special circumstances: Kuwait's strategic location in the Middle East region makes it a convenient travel hub for both leisure and business travelers. The country's rich cultural heritage, modern infrastructure, and luxury shopping destinations also contribute to its appeal as a tourist destination. Moreover, the government's initiatives to promote tourism and diversify the economy are creating a conducive environment for the industry's growth.

Underlying macroeconomic factors: The steady economic growth in Kuwait, driven by factors such as favorable government policies, increasing investments in infrastructure, and a thriving business environment, is positively impacting the travel and tourism sector. The rising disposable income levels among Kuwaiti residents are fueling their spending on travel experiences, both domestically and internationally. Additionally, the government's focus on enhancing the tourism sector as part of its economic diversification efforts is attracting more investments and driving the industry's expansion.

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.

This report presents a comprehensive analysis and additional information on the Mobility market, in a PDF format.

Business or corporate travel is the tourism segment that focuses on people who travel for work or professional purposes and the related tourism services. This branch also includes the meetings industry, which refers to business events, conferences, congresses, trade fairs, and exhibitions. According to the World Travel and Tourism Council (WTTC), business travel accounted for 20 percent of the global tourism expenditure in 2021. In that year, it was estimated that business travelers spent more than 740 billion U.S. dollars worldwide, with Chinese tourists topping the ranking of the biggest business travel spenders.