BrazilGCC’s outbound travel market set for strong growth
The market for outbound travel in the GCC region has seen a CAGR of 20% over the past six years, according to research from Glasgow Research & Consulting. That growth is expected to continue at a rate of around 7% or 8% until at least 2033, when it could reach $178 billion.
This remarkable growth in the outbound tourism market can be linked to the rapid rise in overall economic performance and development in the GCC countries. Wealth – and with it expendable income – has been growing steadily in these countries thanks, in large part, to their booming oil and gas industries.
The total in expenditures in outbound tourism from GCC countries reached a whopping $76 billion in 2023. Saudi Arabia accounts for the largest part of the market, with 49% of the expenditure coming from Saudi travelers.
The research found that a total of 64% of the international travelers from the GCC region are male, with about half being between the ages of 25 and 45. These travelers have a preference for luxury and exclusive experiences, which mirrors most of the domestic offerings.
For example, South Korea made a bold move to capitalize on this opportunity recently by launching an initiative to attract super-rich GCC travelers. Their plans include creating new luxury accommodations, restaurants, and shopping locations.
Around 60% of GCC travelers actually travel to other GCC locations, though many others also travel to Europe, Asia, or other parts of the Middle East. There is far less travel to African countries, but destinations like Kenya and South Africa are growing in popularity, thanks to targeted marketing campaigns and new direct flight options.
GCC travelers were mostly motivated to travel because they want to see new places, to de-stress and relax, and in order to spend time with family. Many GCC travelers travel to Europe for comparably long periods, likely in order to see as much as possible.
“By understanding the preferences and spending behaviors of GCC travelers, destinations can tailor their offerings to attract this lucrative market,” the report from Glasgow Research & Consulting notes.
Indeed, GCC travelers are some of the biggest spenders in the world, with a per capita expenditure higher than the global average. They certainly spare no expense on their stays: the most common choice of accommodation for GCC travelers are five-star hostels (44%), with many opting for no less than four-star hotels (37%).
That is in huge contrast to the low-cost focus of other markets, where travelers very often have shoestring budgets, especially younger travelers.
GCC travelers are also more likely to opt for pricey options when booking, like going with a travel agent and going the convenient route with all-inclusive packages. In other markets, self-booking and economy options are much more common.
This trend in GCC outbound travel has already been clear since the post-pandemic recovery in international travel. In fact, a previous study found that UAE travelers increased their travel spending over the past several years.
