Benjamin Parent has worked at Tesla, on ships, and as a part-time tennis coach.
25.08.2023 - 14:39 / skift.com / Richard Clarke / Wouter Geerts
We used to talk in pre-pandemic years about how travel is moving East, with the epicentre and greatest volumes of travel no longer happening in North America or Europe, but in Asia. The pandemic has shifted that momentum back somewhat, and the Middle East has really taken on the role of connecting parts of the world.
The top 10 routes for 2022 compared to 2019 you can see how the Middle is now so relevant: 7 of the top 10 routes originate or arrive in the Middle East, or do both.
At Skift Research we have been tracking the performance of the travel industry since the start of the pandemic. We track demand performance in 22 countries, using data from 20 different data partners from across all travel sectors. We are seeing how the Middle East has recovered, and other regions are also fully or near-completely recovered. There is a real feeling now – with the exception of some parts of Asia – that we have moved beyond the pandemic recovery and start to plan for longterm growth again.
That’s not to say that there aren’t any roadblocks and that it will be smooth sailing from here. Make no mistake about it, we continue to find ourselves in uncertain times. Large parts of the world are on the brink of a recession and inflation is extremely high in all corners of the globe.
The high inflation, as well as returning demand, has resulted in extremely high prices for travel products. The UAE, for example, has had the highest hotel prices compared to pre-pandemic levels of all major travel economies.
While we know that the luxury traveller – which is the UAE’s bread and butter – tends to be more resilient to rate increases (and Richard Clarke of Bernstein will likely talk about this more later today), we are seeing travellers being put off from traveling at all, or finding cheaper alternatives for flights and accommodation.
In this light, with demand coming back but with worries about inflation, recession and high prices, it is interesting to take a closer look at some of the targets set by key destinations in the region for the coming decades.
The Middle East is driving growth in the travel industry, with countries looking to diversify their economic output and looking at tourism as a sustainable way to grow and insulate their economies moving forward.
Dubai International airport has seen major expansion, and the country doesn’t just want to be a hub for connecting flights, but aims to expand hotel stays to 40 million per year in the next 10 years.
Saudi Arabia has also recently announced a massive expansion of its Riyadh International Airport, and wants to attract 100 million travellers by 2030.
Qatar and Oman are also seeing the importance of tourism and have set targets to triple and double visitor numbers in
Benjamin Parent has worked at Tesla, on ships, and as a part-time tennis coach.
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