The GCC outbound tourism market consists of regional residents traveling outside their country of residence for leisure, business, and other purposes. The main destinations for GCC outbound tourists are Europe, Asia, the Americas, and other parts of the Middle East. Key attractions for GCC travelers include beaches and coastal areas, nature and adventure activities, culture and heritage, city tours, and shopping. Growing disposable incomes and improved connectivity have helped boost tourism spending among GCC Outbound Tourism Market Size in recent years. Several GCC governments have also been promoting domestic and outbound tourism as part of their diversification strategies away from oil dependence.

The Global GCC Outbound Tourism Market is estimated to be valued at US$ 75.89 Bn in 2024 and is expected to exhibit a CAGR of 7.7% over the forecast period 2024 to 2031.

Key Takeaways
Key players operating in the GCC outbound tourism market are Al Futtaim Travel, Al Ghanim Travel, Al Rostamani Travel and Holidays, Kanoo Travel, Omeir Travel Agency, Al Rais Travel Agencies, ITL World, Belhasa Tourism & Travel, Al Naboodah Travel, Al Tayer Travel Agency, Al Mosafer, Al Jazeera Travel & Tourism, Al Mufeed Travel & Tourism, Al Mufeed Travel, Al-Hokair Group, Al-Faisal Travel, Al Mufeed Travel Agency, Al Safwa Travel & Tourism, Al Shams Travel & Tourism, and Al Ahlia Travel & Tourism. These companies cater to the tourism needs of GCC nationals by offering international tours, hotel bookings, visa processing, and other travel related services.

The demand for outbound tourism from GCC countries is expected to grow steadily driven by increasing disposable incomes, online booking trends, globalization, and multifaceted tourism promotions by various governments. Young working population and students from the region traveling more frequently will continue to support market demand over the coming years.

Technological advancements in areas of online travel booking, e-visa, blockchain applications for travel documents etc. are slated to make travel more seamless, convenient and secure for GCC residents. Sustained investments by travel agencies towards digitization of services will help enhance customer experience in the outbound tourism market.

Market Trends
Growing medical tourism from GCC countries - Affordable quality healthcare and short waiting periods make countries like Thailand, India and Turkey top destinations for medical travelers from the GCC. Number of GCC residents opting for international healthcare is on the rise.

Adventure tourism gaining traction among younger GCC nationals - Rising interest in nature activities, trekking, camping, water sports etc. is opening new opportunities. Europe, Asia Pacific and parts of Africa catering to this travel trend.

Market Opportunities
MICE tourism from GCC offers large untapped potential - Conferences, exhibitions, incentive travel etc present scope to attract GCC businesses and organizations. Cities in Asia and Europe focusing on this niche.

Niche area of Islamic tourism can be further strengthened - GCC travelers interested in modest accommodations and halal food and beverage options. Southeast Asian countries customizing offerings to attract this segment.

Impact of COVID-19 on GCC Outbound Tourism Market

The COVID-19 pandemic has significantly impacted GCC Outbound Tourism Market Size And Trends  . During the initial phase of the pandemic in 2020, international travel restrictions led to a steep decline in outbound travel from GCC countries. According to estimates, the total outbound trips from GCC countries declined by over 70% in 2020 compared to pre-pandemic levels in 2019 due to the worldwide travel lockdowns. The major destinations for GCC tourists like Europe, Asia, Africa and Americas reported minimal inflow of visitors from Gulf countries during this period. The short-term future outlook also remained uncertain due to the evolving nature of the pandemic situation globally.

However, with the widespread COVID-19 vaccination programs and the gradual lifting of travel curbs since mid-2021, the GCC outbound tourism market has started recovering. The outbound travel is witnessing a strong pent-up demand boost as more GCC residents plan delayed or new trips abroad. The destinations in close proximity like Egypt, Turkey and India have benefited initially due to ease of travel. The long-haul destinations in Europe and Americas are also regaining popularity backed by vaccination-driven confidence. The travel agencies and tour operators are optimizing operations and modifying service offerings to adapt to the new travel norms. The GCC governments continue promoting domestic tourism to sustain the industry until normalcy in international travel is restored fully. Overall, the market is projected to bounce back to pre-pandemic levels by 2024 subject to global containment of the pandemic.

Concentration of GCC Outbound Tourism Market in key destinations

In terms of value, the GCC outbound tourism market remains highly concentrated in a few key destinations that attract the maximum number of travelers from the Gulf region regularly. Europe has traditionally been the dominant destination block for GCC travelers, accounting for over 35% of the total outbound tourism expenditure from GCC countries. Within Europe, United Kingdom and Germany constitute the most popular travel spots for GCC visitors combined. Egypt and Turkey in close proximity also receive significant outbound tourist inflow from GCC and contribute nearly 25% of the total market value. Emerging destinations in Southeast Asia like Thailand, Malaysia and Indonesia have been growing swiftly in recent years due to increased air connectivity and promotions.

Fastest growing region in GCC Outbound Tourism Market

Southeast Asia has emerged as the fastest growing region in the GCC outbound tourism market over the past decade. Majority of GCC countries like Saudi Arabia, UAE and Qatar have strengthened air connectivity and trade links with countries like Indonesia, Thailand and Malaysia. The Southeast Asian destinations offer unique holiday experiences like beaches, cultural attractions, shopping and cuisines to GCC visitors at affordable rates compared to traditional destinations in Europe and Americas. Also, the travel time is comparatively less as against long-haul flights elsewhere. All these factors have contributed to accelerated outbound tourist arrival growth from GCC to Southeast Asia averaging over 12% annually during last 5 years. With continued visa facilitation and marketing initiatives, Southeast Asia is well-poised to sustain this momentum as the fastest growing region in the GCC outbound tourism circuit.

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