MENA Hospitality Market Size, Share, Growth and Industry Analysis By Type & Application, Regional Insights and Forecast, 2024-2032

Growth Factors of Middle East and North Africa (MENA) hospitality Market

The Middle East and North Africa (MENA) hospitality market is undergoing strong expansion, supported by rising tourism inflows, increasing government investments, and the region's growing position as a global travel destination. In 2024, the MENA hospitality market was valued at USD 286.06 billion. The market is projected to grow to USD 310.04 billion in 2025 and further reach USD 487.36 billion by 2032, registering steady growth during the forecast period.

Tourism and hospitality play a vital role in the economic development of the MENA region. According to the World Travel & Tourism Council, the travel and tourism sector generated USD 459.9 billion in 2023, contributing 6.7% to the region's total economy. The hospitality sector relies heavily on consumer spending, and increasing tourist expenditures across the region are strongly supporting market growth. In 2023, international visitor spending exceeded USD 179.8 billion, while domestic visitor spending surpassed USD 205.3 billion across the Middle East, highlighting the sector's economic significance.

Governments across the region are actively implementing initiatives to strengthen tourism and hospitality infrastructure. For instance, in March 2024, Saudi Arabia's Ministry of Tourism announced SAR 42 billion (USD 11 billion) in new hospitality investments, aimed at creating 42,000 new room keys and approximately 120,000 job opportunities. Such large-scale investments are accelerating hotel development, boosting employment, and enhancing service capacity across the region.

The COVID-19 pandemic significantly disrupted the hospitality sector in 2020, particularly due to supply chain interruptions, travel restrictions, and the closure of theme parks and tourist attractions. However, the market has recovered strongly in the post-pandemic period, supported by the reopening of travel destinations, easing of visa policies, and renewed consumer confidence in travel and leisure activities.

Market Trends

A key trend shaping the MENA hospitality market is the launch of attractive discounts and promotional offers to stimulate demand and improve occupancy rates. Hotels are leveraging seasonal events, festivals, and holiday periods to attract budget-conscious travelers. Staycation-focused promotions targeting domestic and regional travelers are also gaining traction. For example, in March 2024, Banyan Tree Dubai introduced an exclusive Eid staycation offer, providing a 20% discount on rooms, dining, and spa services for UAE and GCC residents.

Market Growth Drivers

The increasing popularity of religious tourism is a major growth driver in the region. MENA hosts several globally significant religious sites, including Mecca, Medina, and Sheikh Zayed Grand Mosque, attracting millions of pilgrims annually. Saudi Arabia remains a key hub for religious tourism, particularly during Hajj and Umrah seasons. According to the Ministry of Hajj & Umrah, over 13.55 million pilgrims performed Umrah in 2023, representing a significant increase compared to pre-pandemic levels.

Governments are also promoting halal tourism as part of broader economic diversification strategies. Investments in halal-friendly hotels, restaurants, and entertainment facilities are enhancing the region's appeal to Muslim travelers worldwide, encouraging new hospitality players to enter the market.

Another major growth factor is the rising number of hotels and expanding accommodation capacity. Improved visa policies, better connectivity, and increased global visibility of MENA destinations are driving both international and domestic travel. For example, the number of hotels in the UAE increased from 1,144 in 2021 to 1,189 in 2022, reflecting strong development momentum. Major international events and continuous hotel launches by global brands are further supporting market growth.

Market Restraints

Despite strong growth prospects, the market faces challenges from rising real estate costs, particularly in prime tourist destinations and business hubs. High land acquisition and development costs make market entry difficult for new players. Additionally, regional conflicts and geopolitical instability, including the Israel-Gaza conflict, have negatively affected tourist sentiment and arrivals in some neighboring countries, potentially impacting short-term hotel occupancy rates.

Segmentation Insights

By type, the accommodation segment dominates the market, driven by rising tourist arrivals and hotel expansion. The food and beverage segment is also growing steadily, supported by culinary tourism, food festivals, and the expansion of international restaurant chains. By travel type, the leisure segment led the market in 2024, supported by a wide range of leisure activities such as desert safaris, cruises, and theme parks. Religious tourism continues to show rapid growth across the region.

By traveler type, international travelers dominate the market, supported by initiatives such as the GCC unified tourist visa, while domestic tourism is growing steadily. By price category, the mid-range segment led the market in 2024, driven by an expanding middle-class population. Online travel agencies dominated booking channels due to convenience and flexibility.

Competitive Landscape

Key players in the MENA hospitality market are focusing on new hotel openings, partnerships, and service enhancements to strengthen their regional presence. Major brands such as Marriott International, Accor, Hilton, Hyatt, and Four Seasons continue to expand across key destinations, supporting long-term market growth.

With rising tourism demand, strong government backing, and continuous infrastructure development, the MENA hospitality market is positioned for sustained expansion through 2032.

Segmentation By Type

• Accommodation
• Food & Beverage
• Travel & Tourism
• Entertainment & Recreation

By Traveler Type

• Leisure
• Business
• Religious
• Others

By Traveler

• Domestic
• International

By Price

• Luxury
• Mid-Range
• Economy

By Booking Channel

• Direct Bookings
• Online Travel Agencies
• Tour Operators
• Others

By Country

• Saudi Arabia
• UAE
• Egypt
• Qatar
• Kuwait
• Algeria
• Rest of the Middle East & North Africa