The Middle East remains one of the most dynamic and rapidly evolving regions in the global tourism landscape, characterized by substantial investments and strategic diversification efforts. The region's tourism sector is projected to contribute approximately $367.3 billion to the economy in 2025, supporting over 7.7 million jobs, with international visitor spending anticipated to reach nearly $194 billion, 24% above 2019 levels.

HVI 2025 covers nine key markets in the Middle East. These markets have demonstrated a robust recovery trajectory, with RevPAR growth averaging 11% from 2019 to full-year 2024, driven by a combination of increased demand and a slowdown in new supply. The UAE, particularly Dubai and Abu Dhabi, has been at the forefront, benefiting from a strong exhibition calendar, the appeal of new leisure attractions, and strategic investments in infrastructure and tourism initiatives.

In tandem with the strong operating recovery, hotel values across the nine major Middle East markets have risen significantly in 2025 compared to 2019, underscoring robust demand growth, expanding infrastructure, and increasing investor confidence, though performance varies across markets.

Gulf hubs continue to lead this upward trajectory. Dubai (+24%) and Abu Dhabi (+24%) remain at the forefront, Dubai driven by sustained international tourism, high-end leisure demand, and vibrant events activity, and Abu Dhabi benefiting from diversification efforts, landmark developments, and expanding corporate travel. Saudi Arabia's key cities have also demonstrated remarkable momentum: Riyadh (+100%) and Makkah (+32%) have seen substantial expansion, supported by strong domestic and religious tourism alongside major infrastructure projects.

Other regional markets show a more mixed picture. Doha (+55%) has recorded impressive growth, reflecting improved air connectivity, continued hospitality investment, and the rise of leisure and MICE segments. Muscat (+25%) and Manama (+9%) have experienced moderate gains but continue to face challenges in sustaining consistent visitor growth, while Kuwait (-10%) and Jeddah (-20%) have underperformed relative to the regional average due to structural constraints and shifting demand patterns.

These trends highlight how leading leisure and event-driven destinations continue to outperform, achieving higher hotel values through occupancy and rate expansion. Saudi cities are rapidly closing the gap with the traditional Gulf hubs, reflecting the transformational impact of large-scale tourism and infrastructure initiatives. Meanwhile, secondary markets face limitations from constrained supply pipelines, economic headwinds, or slower international demand recovery. These dynamics underscore the region's strong resilience and selective growth potential, offering clear opportunities for investors and operators in high-demand leisure hubs and expanding domestic markets.

Saudi Arabia's Vision 2030 has positioned tourism as a central pillar of economic diversification, with landmark developments such as the Red Sea Project and NEOM driving the sector. The Red Sea Project spans pristine islands, deserts, and mountains, aiming to deliver luxury resorts, over 8,000 hotel rooms, and a sustainable, world-class destination by 2030. NEOM, with its futuristic linear city The Line, the mountain resort Trojena, and the luxury island Sindalah, combines innovation, entertainment, and high-end hospitality to attract global visitors. Together, these projects reflect Saudi Arabia's ambition to transform its tourism offering and create iconic destinations that blend luxury, sustainability, and cutting-edge design.

However, challenges persist. Geopolitical tensions and regional conflicts have impacted tourism flows and continue to affect non-GCC countries. Moreover, while investment in tourism infrastructure is robust, there is a need for continued focus on sustainable development and the diversification of tourism products to ensure long-term resilience.

Overall, the Middle East's tourism sector in 2025 is marked by significant growth, strategic investments, and commitment to diversification. While challenges remain, the region's proactive approach and substantial investments position it well for sustained success in the global tourism arena.

FIGURE 1 - Leading and Trailing Markets in Middle East (USD Value Per Key in 2019 & 2025)

FIGURE 2 – Middle East Indexed Markets (2019 & 2025)