David Scowsill, president and CEO of the World Travel & Tourism Council (WTTC),  has called for continued investment in Travel & Tourism in the Middle East - which generated $194.5 billion or 8.0 per cent of GDP in 2015 - as a means of diversifying economies as oil revenues fall.

According to WTTC research, government spending on travel and tourism in the Middle East is set to grow by 2.6 per cent in 2016, and 3.5 per cent per year over the next 10 years.  Capital investment in the sector is forecast to rise by 5.2 per cent this year and 5.4 per cent per year to 2026.  While these growth levels are slightly higher than the world average, the data shows that they are the minimum that is needed in order for tourism to grow sustainably and to ensure resilience for economies which are oil dependent.  

In his speech at the Arabian Hotel Investment Conference (AHIC) 2016 in Dubai, Scowsill highlighted: “Our research demonstrates that rather than switching off investment in travel and tourism as oil revenues fall, countries dependent on oil income would benefit greatly from investing in the tourism sector, to further diversify their economies and to develop additional income streams.”

“It is critical that the public and private sectors together continue to drive growth through investing in transportation infrastructure, funding new hotels and tourism attractions, increasing destination marketing and continuing to improve visa processes,” Scowsill said.

Despite significant challenges, particularly around safety and security in the region, travel and tourism performance has been strong. In 2015, 11 out of the 13 countries in the region experienced growth in the sector’s contribution to GDP, with Qatar showing the strongest growth at 23.7 per cent, stimulated by tourism investment for the World Cup, followed by Kuwait at 13.4 per cent and Bahrain at 7.6 per cent.

Furthermore AHIC’s host country, the UAE, is one of the leaders when it comes to travel and tourism performance. The sector’s contribution to GDP grew by 4.2 per cent in 2015, well above the world average and reflecting many years of investment by government and private sector in Travel & Tourism. In 2015, government spending on travel and tourism was Dh27.4 billion ($7.4 billion), 5.5 per cent of the total, and capital investment was Dh27.4 billion, 7.3 per cent of the total.  

Investment and funding drives travel and tourism income, and in 2015 the country’s travel and tourism income from visitors grew by 4.3 per cent. The UAE is currently 28th in the world in terms of the size of its travel and tourism economy, with a total contribution of Dh133.8 billion ($36.4 billion) or 8.7 per cent of GDP in 2015. - TradeArabia News Service