Vacation Rentals - Iraq

Iraq

Highlights

Iraq is projected to generate a revenue of US$283.30m in the Vacation Rentals market by 2024.
It is expected that this revenue will show a compound annual growth rate (CAGR 2024-2029) of 3.69%, resulting in a projected market volume of US$339.60m by 2029.
By 2029, the number of users in the Vacation Rentals market is expected to reach 5.08m users.
The user penetration rate is projected to increase from 8.5% in 2024 to 9.8% by 2029.
The average revenue per user (ARPU) is expected to be US$71.82.
Moreover, it is estimated that 65% of the total revenue in the Vacation Rentals market will be generated through online sales by 2029.
In comparison to other countries, United States is projected to generate the most revenue in this market, with a revenue of US$20bn in 2024.
Despite challenges, vacation rental options are emerging in Iraq as the country recovers from conflict and attracts more tourists.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Vacation Rentals market in Iraq is experiencing a notable surge in popularity among both domestic and international travelers.

Customer preferences: Travelers in Iraq are increasingly opting for vacation rentals over traditional hotels due to the flexibility, privacy, and cost-effectiveness they offer. With a growing trend towards experiential travel, visitors seek unique and authentic accommodations that allow them to immerse themselves in the local culture.

Trends in the market: One key trend in the Vacation Rentals market in Iraq is the rise of online platforms connecting property owners with potential renters. This digital transformation has made it easier for individuals to list their properties and for travelers to discover and book accommodations, driving market growth. Additionally, the demand for short-term rentals in popular tourist destinations is fueling the expansion of vacation rental offerings across the country.

Local special circumstances: Iraq's rich history and diverse landscapes make it a compelling destination for travelers seeking both cultural experiences and outdoor adventures. The availability of vacation rentals in historical cities like Baghdad and Erbil, as well as near natural wonders such as the Tigris River and the Zagros Mountains, caters to a wide range of preferences. This diversity of options contributes to the vibrancy of the Vacation Rentals market in Iraq.

Underlying macroeconomic factors: The improving security situation in Iraq has played a significant role in boosting the tourism industry, including the Vacation Rentals market. As the country continues to stabilize and rebuild its infrastructure, more travelers are feeling confident about visiting and exploring all that Iraq has to offer. This positive momentum, combined with increasing disposable incomes and a growing middle class, is driving the growth of the vacation rental sector in the country.

Data coverage:

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

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.