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Middle East Emerges as Global Leader in Tourism Recovery Post-Pandemic, HSBC Report Finds

Updated: Oct 1, 2023

The Middle East's tourism sector has taken center stage in the global recovery from the pandemic's impact, showcasing remarkable resilience amid prevailing economic challenges, as highlighted by a recent research report by HSBC Global Research. While many regions worldwide continue to grapple with the far-reaching effects of the COVID-19 pandemic, countries in the Middle East, with Saudi Arabia and the UAE leading the charge, have achieved a remarkable "total recovery" in terms of tourist arrivals during the initial quarter of 2023.


Unprecedented Tourism Rebound in the Middle East


HSBC's groundbreaking report, titled "Jet, Set, Go!", unveils an unparalleled post-pandemic recovery in the Middle East's tourism sector. Throughout the first three months of 2023, tourist arrivals surged by an impressive 15%, surpassing even the levels recorded in 2019. This remarkable recovery stands in stark contrast to Europe, which secured the second spot with a recovery rate reaching 90% of pre-pandemic figures.

Leading the Revival


Prominent Middle Eastern nations, including Saudi Arabia, the UAE, Qatar, and Turkey, have not only witnessed a resurgence in tourist footfalls but have also experienced significant gains in tourism receipts. HSBC's research emphasizes the Middle East's exceptional performance in tourism recovery, positioning it as the first global region to surpass pre-pandemic levels. Notably, Maitreyi Das, HSBC's economist specializing in securities and capital markets, praises Qatar and Saudi Arabia as global leaders in terms of tourist arrivals during the first quarter of 2023.


Tourism as an Economic Driver


The growth and diversification of the tourism sector have emerged as pivotal economic strategies for Middle Eastern nations, particularly within the Gulf Cooperation Council (GCC). These nations are actively working to shift their economies away from traditional oil-centric models.


Saudi Arabia, for instance, has set ambitious targets for its tourism sector, aiming to attract 100 million visitors annually by 2030. The country's commitment is evident through initiatives like the establishment of the Saudi Tourism Investment Company (Asfar), dedicated to supporting the sector's expansion. Similarly, the UAE, the Arab world's second-largest economy, is resolutely focused on enhancing its tourism sector. Sheikh Mohammed bin Rashid's ambitious goal to attract 40 million tourists within seven years reflects the nation's determination to bolster the tourism sector's contribution to GDP.


Global Implications and Economic Prospects


HSBC's findings underscore the Middle East's leading role in the global tourism industry, accounting for the highest share of GDP derived from tourism, standing at an impressive 5%. This emphasis on tourism bodes well for the region's economic future as the global recovery continues to progress. With international tourism receipts reaching a staggering $1 trillion the previous year, the potential for sustained growth is evident.


HSBC's study draws attention to the varying degrees of recovery across different regions. While Europe experienced a substantial rebound at 87% of pre-pandemic levels, Africa, the Middle East, and the Americas closely followed at 75%, 70%, and 68%, respectively. The study also anticipates Asian destinations to experience a sharp increase in 2023 as border restrictions ease.


As the Middle East takes the stage as the global leader in post-pandemic tourism recovery, it stands as a testament to the power of strategic investments, resilience, and adaptability. The region's commitment to diversifying economies and promoting tourism lays a strong foundation for a prosperous future. With Saudi Arabia and the UAE spearheading this transformation, the Middle East emerges as a global role model for revitalizing sectors and economies amid unprecedented challenges.

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