Travellers extending stays in the Middle East: 2024 insights from Mastercard Economics Institute

The latest global report from the Mastercard Economics Institute reveals a significant trend among travellers extending their stays in the Middle East and Africa. This shift in travel patterns has had a positive impact on local economies and tourism industries, as highlighted in the “Travel Trends 2024” report.

The report shows that tourists across the Middle East and Africa are extending their trips by an average of three days compared to pre-pandemic levels. This extension of stays is providing a substantial economic boost to local businesses and economies, as longer visits typically translate to higher spending.

“The travel sector in the Middle East region is incredibly strong and resilient, supported by consumer demand, an appetite to discover destinations closer to home, while enjoying memorable and authentic experiences. It’s great to see travelers extend their stays, and this is something that’s very positive for the tourism industry at large, as well as local governments building diversified economies,” said Natalia Lechmanova, Chief Economist EEMEA at Mastercard Economics Institute.

International travel has surged globally, with the Middle East experiencing remarkable milestones. For the first time, Saudi Arabia surpassed three million inbound (non-religious) visits per month for three consecutive months from January to March 2024.

Similarly, Egypt saw a 27% year-on-year growth in visitors in 2023, and Morocco welcomed 3.3 million tourists by the end of Q1 2024, marking a 12.8% increase from the previous year.

Dubai also continued its upward trajectory, recording an 11% increase in tourism numbers in Q1 2024, building on a record-setting year in 2023.

Leisure for longer

The Mastercard Economics Institute finds a clear inverse relationship between the price of the destination and the incremental number of days tourists spend while in those destinations. In other words, the cheaper the destination, the longer the stay. And longer stays generally translate to more spend per trip, providing an economic boost for businesses supporting local economies in the travel industry.

Experience economy on the go

Consumers have prioritised meaningful experiences over material goods, even when traveling. Spending on experiences now totals 12% of tourism sales, according to SpendingPulse Destinations which provides worldwide estimates of tourism at a high frequency level across all payment types – the highest point in at least five years as of March 2024.

In the UAE, tourism spending on casual dining has been roughly 21% higher than the same time last year. Memorable events are driving travel trends, whether it is for concerts (like Taylor Swift shows) or sporting events (like the Cricket World Cup). In 2027, all eyes will be on Egypt when a total eclipse happens right above the pyramids. Analysis by the Mastercard Economics Institute of this year’s solar eclipse in the US found a substantial lift in sales in the areas within the path of totality.

Cruising full steam ahead

For many travellers, the widening price difference between cruises and hotels has made cruises a more budget-friendly option for a getaway. Global cruise passenger transactions were roughly 16% above 2019 levels in Q1.

In March, the Cruise Arabia alliance was formed by Dubai, Abu Dhabi, Bahrain and Oman’s maritime and tourism authorities to position the Arabian Gulf as an international cruise destination.

Likewise, Saudi Arabia, with cruise-ready ports located on the coastlines of the Red Sea and the Arabian Gulf, allows tourists to explore Saudi from the sea. Cruise Saudi welcomes cruise lines from around the globe to include Saudi as a port of call on their itineraries and add exciting new destinations across Saudi that boast rich cultural heritage, history, and natural wonders.

Outbound

Japan and the UAE have emerged as top trending destinations globally over the past 12 months for GCC residents. Looking ahead, Munich is anticipated to be the top destination for summer 2024, driven by the European Championship. For travellers from Saudi Arabia, the top three summer destinations are Cairo, Rome, and Cape Town, while those from the UAE prefer London, Athens, and Paris.

The full “Travel Trends 2024: Breaking Boundaries” report is available here. Additional insights from the Mastercard Economics Institute can be found on their website.