The GCC region is set for substantial growth in the hospitality sector, with nearly 400,000 new hotel rooms planned by 2030. Transitioning from oil dependency, the region is boosting its economy through tourism, showcased by an impressive surge in hotel projects that exceed previous forecasts.
Key factors fueling this growth include strategic government initiatives and large-scale investments as part of long-term plans like Saudi Arabia's Vision 2030. Major projects such as Neom, The Red Sea, Diriyah, and Amaala will contribute thousands of rooms to Saudi Arabia’s inventory. The country leads the expansion, representing 80% of regional growth, with 320,000 new rooms expected by 2030, per Knight Frank’s GCC Hospitality Market Review 2024.
Dubai, a major global tourism center, continues to thrive, being the third most visited city globally in 2023 with 154,000 rooms accommodating 17.2 million visitors. This momentum carried into 2024, with 9.3 million tourists in the first half of the year, marking a 9% increase from H1 2023. Saudi Arabia, meanwhile, drew 27.4 million visitors in 2023, becoming the 13th most visited nation globally.
Knight Frank’s report indicates that the GCC states will collectively add 392,000 hotel rooms by 2030. The region has experienced robust growth in hotel occupancy and average daily rates in recent years. Saudi Arabia is set to deliver 320,000 rooms for $37.8 billion, positioning itself as a top destination for religious and leisure tourism.
In the UAE, an additional 26,832 hotel rooms are planned by 2030, increasing the total to 238,412 rooms—a 12.7% growth from 2024. Dubai alone will contribute 17,750 of these rooms, aligning with its goal to host 40 million tourists by 2030. Abu Dhabi and Ras Al Khaimah will also see significant room additions.
Despite regional growth, disparities exist. The UAE is currently the largest market with 212,000 quality hotel rooms, including 154,000 in Dubai. Saudi Arabia follows with 159,790 rooms and plans for a 29% increase by 2026. Bahrain, Kuwait, and other Gulf states show slower, but steady, growth.
Saudi Arabia’s plans include 362,000 rooms either under construction or in planning stages, driven by Vision 2030’s goal of reaching 150 million annual visitors by the end of the decade. Riyadh's upcoming 2030 World Expo and the 2034 FIFA World Cup are set to further boost tourism, while religious tourism remains pivotal, with 221,000 new rooms planned for Makkah and Madinah.
The UAE’s tourism sector, contributing 11.7% of its GDP, continues to shine with a record $59.8 billion contribution in 2023. Dubai remains a leader in luxury hospitality, with over 52,000 five-star hotel rooms and 14 Michelin-star restaurants.
The report concludes that the strategic visions and development plans in the GCC will continue to transform the region into a global hub for hospitality, with substantial room additions supporting economic growth and tourism goals.
News Source: Gulf Construction
