was expected to exceed 5.5 trillion U.S. dollars. However, the global hotel and accommodation industry experienced a strong economic
. The hospitality business in the Gulf Cooperation Council (GCC) countries is steadily recovering despite the COVID-19 pandemic. This expansion reflects governments' successful diversification strategies away from oil and gas earnings, as well as their belief in the region's tourist sector growth.
Luxury hotels in UAE
The United Arab Emirates, which has attempted to promote a more upscale tourism experience, owns much of the GCC luxury hotel supply. Planned
luxury hotel projects in the emirate of Dubai, the UAE’s most well-developed tourist destination, exceeded 50 percent of pipeline hotel projects in 2022. On the other hand, the UAE’s hotel industry's eagerness to adapt to emerging global trends, such as promoting cultural and authentic experiences, sustainability, technological integration, wellness, and health-conscious offerings, makes it well-positioned to satisfy visitors' shifting demands. According to estimates, approximately 25 thousand additional
hotel rooms were in the pipeline in the UAE between 2023 and 2028.
Saudi Arabia’s hotel industry transformation
Driven by the country's Vision 2030 initiative, which aims to diversify the economy and boost tourism, Saudi Arabia has seen a surge in hotel construction and development. Riyadh was leading in the
number of hotel projects in 2022. Major cities like Riyadh, Jeddah, and Mecca have become hotspots for luxury hotels, with international chains making significant investments. Saudi Arabia is also expanding their hospitality industry to cater to a broader range of tourists, including business, leisure, and religious tourists, making it more accessible and appealing to a global audience. In 2021, there were over seven million
tourists visiting Saudi Arabia’s top religious sites for Hajj, Umrah, and visiting Madinah. With a focus on modernization, quality, and cultural authenticity, Saudi Arabia's hotel industry is set to play a major role in the country's economic diversification initiatives and its emergence as a top tourism destination in the GCC region.
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