Fresh insights into the future of travel across the Middle East were revealed this week at Arabian Travel Market (ATM) 2025, offering a detailed view of emerging trends, evolving consumer preferences, and strategic market opportunities in the region’s tourism industry.
On Day 2 of the event, Tourism Economics, part of Oxford Economics, presented the latest findings from its ATM Trends Report: Leisure, Luxury and MICE – Leading Trends for the Middle East. The report provided a deep dive into inbound and outbound travel dynamics, including visit volumes, spending behaviour, and key source markets fueling growth across the Gulf.
Dave Goodger, Managing Director, EMEA at Tourism Economics, commented:
“Global travel is set to reach record levels this year, returning to pre-pandemic trajectories. We’re witnessing strong recovery across all regions, and the Middle East stands out – especially the GCC, where international demand is driving over 85% of the forecasted growth in accommodation demand.”
Also contributing to the discussion, Trip.com Group shared valuable perspectives in a panel titled “Partnering for Progress: Unlocking Tourism Growth Through Innovative Collaborations.” The session highlighted growing segments like entertainment, education, and senior travel, all seen as rising pillars of tourism demand in the Middle East.
Jane Sun, CEO of Trip.com Group, added:
“The Middle East is a strategic hub connecting Europe, Asia, and Africa. Supportive visa policies, expanded flight routes, and robust tourism investments are propelling its growth. By collaborating with regional stakeholders and leveraging our consumer insights and technology, we aim to drive meaningful global engagement.”
In a separate session on ATM’s Future Stage, VIDEC Consultants unveiled findings from its latest study titled “Travel Market Sizing and OTA Benchmarking.” The research focuses on air and hotel sectors across the UAE, Saudi Arabia, and India, mapping opportunities for online travel agencies (OTAs) from 2019 to 2028.
Virendra Jain, Founder and CEO of VIDEC Consultants, said:
“UAE, Saudi Arabia, and India have young, digitally active populations with significant spending power. These countries share cultural ties and enjoy excellent air connectivity. Demand for religious, luxury, wellness, and VFR travel continues to grow, positioning this corridor for sustained expansion.”
Key insights from the VIDEC report include:
- The UAE’s Total Air Market (TAM) is projected to reach USD 5.4 billion by 2028, up from USD 4.2 billion in 2024, growing at a CAGR of 6.9%.
- In 2024, online OTA bookings in the UAE totaled USD 679 million, a 20% increase from 2023.
- Airline websites and apps accounted for 56% of online gross booking value (GBV), or USD 851 million, equating to one-fifth of the country’s TAM.
VIDEC attributes this digital shift to the strength of airline direct channels, including loyalty programs and seamless digital interfaces. Carriers such as Emirates, Etihad, and flydubai are leading the way in customer engagement and personalization, with flydubai also integrated with Emirates Skywards to enhance customer loyalty.
Despite the competitiveness of the UAE’s OTA space, due to its diverse airline network and expatriate population, VIDEC sees vast growth potential. OTA platforms are becoming the go-to choice for travellers, leveraging tech innovation, user-centric design, and fintech solutions to deliver frictionless experiences.
As ATM 2025 draws to a close today at the Dubai World Trade Centre, the event has already welcomed over 55,000 attendees from 166 countries, with 2,800+ exhibitors showcasing cutting-edge solutions. The 32nd edition focuses on the theme “Global Travel: Developing Tomorrow’s Tourism Through Enhanced Connectivity” – emphasising collaboration across borders, sectors, and communities to shape the future of global tourism.
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Written By Queen Diana Story
