The Middle East remains one of the most dynamic and rapidly evolving regions in the global tourism landscape, characterized by substantial investments, strategic diversification efforts and a burgeoning middle class. 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 spend 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 7.8% year-to-date in 2025, 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.

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 a 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.

Hotel values across nine major Middle East markets have increased significantly in 2025 compared to 2019, reflecting robust demand growth, expanding infrastructure and strengthening investor confidence, though performance varies across markets.

Gulf hubs lead the growth:

• Dubai (+24%) remains the regional leader, supported by sustained international tourism, high-end leisure demand and strong events activity.
• Abu Dhabi (+24%) benefits from diversification initiatives, iconic developments and growing corporate travel.
• Riyadh (+100%) and Makkah (+32%) demonstrate strong expansion, driven by domestic tourism, religious demand and ongoing infrastructure development.

Other key markets show mixed performance:

• Doha (+55%) records notable growth, supported by improved connectivity, investments in hospitality, and rising leisure and MICE segments.
• Muscat (+25%) and Manama (+9%) see moderate growth, however, are facing challenges in steady tourism attraction.
• Kuwait (-10%) and Jeddah (-20%) underperform relative to the regional average, highlighting structural constraints and shifting demand patterns.

Key takeaways:

• Leading leisure and event-driven destinations continue to outperform, driving value growth through occupancy and rate expansion.
• Saudi cities are rapidly closing the gap with traditional Gulf hubs, reflecting the impact of large-scale tourism and infrastructure initiatives.
• Secondary markets face constraints from limited supply, economic factors and slower international demand recovery.
• Overall, Middle East hotel markets demonstrate strong resilience and selective growth potential, offering clear opportunities for investors and operators in high-demand leisure hubs and expanding domestic markets.

Historical Trend - Markets in Middle East (USD Value per Key in 2019, 2021 and 2025)

Leading and Trailing Markets in Middle East (USD Value per Key in 2025)

Leading and Trailing Markets in Middle East (% Value Change in 2025 over 2019)