Dubai, UAE – Business tourism and travel within the GCC region have been experiencing a significant upward trend over the last two years, fueled by efforts to bolster the economies of member countries.Â
The GCC has successfully positioned itself as a hub for a diverse range of travelers, including job seekers, investors, artists, and even those merely passing through.
With their rapidly growing economies, strategic geographic location, and ambitious infrastructure development plans, the GCC countries have become magnets for business travelers worldwide.
However, like any other industry, the business tourism landscape in the GCC region is constantly changing, influenced by various factors, such as economic shifts, technological advancements, and global events.
According to Nikhil Bande, Senior Manager at Nomadic Middle East, the factors driving the increasing shifts include a growing recognition of the value of face-to-face interactions in business. In recent years, these interactions seem to foster more meaningful and long-lasting relationships than remote, digital communications. This shift also influences travel trends as more companies prioritize in-person meetings.
Environmental concerns, such as climate change, are also influencing the travel industry. For example, airlines are now offering options with a lower carbon footprint, and there is an increase in sustainable travel options.
Furthermore, technological advancements are making travel processes more efficient. The digitalization of visas, bookings, and travel passes is making travel more efficient and impactful.
Individual GCC countries are also working to make travel and lodging more convenient. Kuwait, for example, recently introduced a new visa category to encourage participation in cultural and sporting events, with a three-month permissible stay that can be extended for up to one year.
Qatar has extended the use of the Hayya card, which was initially issued for the World Cup, to tourism and other major events, such as the AFC Asian Cup and the International Horticultural Expo 2023.
Similarly, Saudi Arabia has introduced an Electronic Visa Waiver for UK nationals and expanded its e-visa program to include more nationalities. The UAE also continues to expand its visa-on-arrival list based on bilateral relations with other countries.
Business travelers to the GCC primarily come from countries with strong business ties and historical connections. India leads the list as the top source of business travelers, followed closely by Pakistan, China, Russia, Ukraine, the UK, and the US.
A key driver of this traffic, particularly to Saudi Arabia, is the country’s shift towards a more diversified economy beyond oil. This shift has spurred various new projects and business opportunities, attracting many business travelers.
Moreover, the UAE’s appeal as a shopping destination, especially for electronics, often attracts travelers from Asian countries. These travelers frequently combine their business trips with personal visits, taking advantage of low-cost, same day return flights or extending their stay for leisure purposes.
Additionally, the GCC is becoming a hub for major cultural and entertainment events, from art exhibitions and live concerts to sports events, which draw business and leisure travelers. While traditional business travel continues, there’s a noticeable trend towards ‘dual intent’ travel—business combined with leisure—which is growing each year.Â
Fahim Jalalli, CEO of Kanoo Travel, told TRENDS that when you combine business and leisure, you get this pleasure activity in which people who are visiting Dubai or Riyadh say, “I’d like to take a day or two off from my business trip to do some of these activities.” This dual appeal adds a dynamic dimension to the travel industry, and I believe the growth trajectory seems promising, with increasing numbers of visitors and investments.
Jalalli said that we’re currently experiencing a positive trajectory, with robust activity observed in both leisure and business travel markets. This affirms that stakeholders are in a favorable position.
“As we move forward, we anticipate further growth in travelers’ numbers, flight frequencies, and connectivity options. Additionally, the expansion of tourist destinations and the increase in hotel capacities will enrich travelers’ experiences. So, I think this is a good time, and we’re going to see promising trends in the future,” he stated.
Major attractions
According to Jalalli, destinations like Dubai, Abu Dhabi, Riyadh, and Bahrain have solidified their positions as prominent hubs with iconic landmarks and cultural experiences. This region has long been considered a hidden gem, offering a distinct blend of Arabic culture and history. It’s a refreshing change from the norm, capturing the interest of visitors from North America and Europe looking for new experiences.
Bande, on the other hand, agrees and adds that business travelers are attracted by the prospect of tapping into new business opportunities and expanding their professional networks. The region is renowned for hosting high-profile cultural events, educational seminars, and international conferences, which are major draws for global attendees.
Additionally, the GCC has become a vibrant hub for the tech industry, frequently organizing conferences focused on advancing AI technologies. It also serves as a dynamic platform for social media influencers, motivational speakers, and content creators who convene to engage with their followers and promote various causes.
However, the top reasons to travel to the GCC remain visiting family and friends, cultural exploration, cruise trips, and beach holidays, visiting religious sites, pilgrimages, engaging in adventure /sports, multi-stop trip holidays, gastronomical experiences, wedding-related travels, desert explorers, etc.
There are also special sites, such as Expo 2020 in Dubai, which has now become a hub for major conferences. The Dubai World Trade Centre also hosts numerous events throughout the year, involving different industries, such as tech, pharma, food, fashion, and entertainment.
The challenges
The region saw a notable 28.1% increase in 2023 in travel activity, affirming its status as one of the fastest-growing travel markets. This growth is supported by government efforts to enhance travel accessibility and simplify visa processes.
However, there are unique challenges and characteristics specific to the GCC. For instance, GCC residents often seek higher job titles to facilitate easier intra-region travel, as travel policies can vary significantly depending on one’s country of origin and job status. This reflects the local emphasis on professional status influencing travel ease within the GCC.
“Additionally, the region adapts to global mobility challenges by hosting various foreign embassies that assist with visa processing. This service is especially beneficial for travelers who lack local embassy access in their home countries; they can instead apply for visas at a nearby GCC country and then return home. This approach underscores the GCC’s role as a critical hub in facilitating international travel and visa processing, reflecting its unique position in the global travel landscape”, Bande explained.
The future of business travel
The future of business travel in the GCC is poised for substantial growth, with projections suggesting that spending will reach nearly US $1.8 trillion by 2027.
Bande stated that Dubai has seen a significant increase in business travel, with over 15 million overnight international visitors recorded in just the first 11 months of 2023, a 20% increase over the previous year.
Furthermore, the introduction of a unified GCC visa, similar to the Schengen visa, is expected to increase travel convenience throughout the region, promoting tourism and trade.
In addition, GCC airports have introduced Connections Kiosks to help passengers connect flights and navigate within the airport. There is also a shift towards ePassports, which reduce the issuance of visa stickers and passport stamps to support GCC sustainability initiatives.
Besides, Saudi Arabia is developing NEOM, a landmark project strategically located at the intersection of three continents, offering access to 40% of the world within a six-hour flight. This ambitious initiative is poised to boost the region’s economy by 2030 and beyond significantly.
He also mentioned that the blending of business and leisure travel, or ‘bleisure,’ is emerging as a key trend, with a notable 62% of business travellers incorporating leisure activities into their trips, and 42% extending their stays for vacations, per a Global Business Travel Association survey. Businesses are responding by adopting more flexible travel policies that accommodate this shift.
Moreover, advancements in travel technology, especially AI, are streamlining processes like visa applications and compliance checks, ensuring travelers stay informed about real-time changes to travel requirements. Looking ahead, the potential development of a high-speed rail network within the GCC could revolutionize regional travel, minimizing passport controls and easing visa procedures, thereby reinforcing the GCC’s position as a leading destination for business travelers.