GCC ECOTOURISM MARKET ANALYSIS

Definition of Market/Industry:

Ecotourism refers to the holidaying in a natural environment without damaging the environment or disturbing habitats. It is a part of environmental conservation and understanding the needs of people and improve their life of quality. Moreover, ecotourism also involve understanding and learning of the history of the other cities and countries and protecting the historical landmarks.

The Ecotourism in GCC market is estimated to be valued at US$ 519.01 million in 2021 and is expected to exhibit a CAGR of 3.3% % over the forecast period (2021-2028).

Recent Developments:

• In March 2021, Saudi Arabia is launching various ecotourism projects in the near future to become ecotourism paradise. The country also announced to by 2030,  it aims to decrease its oil dependence in part by increasing tourism to account for 10% of Saudi Arabia's gross domestic product by 2030
• In July 2021, Saudi Arabia announced to tourist destination for regional and international visitors. The country aims to bring 100 million visitors annually.
• Dubai launched National Ecotourism Project' strategy. The UAE Ministry of Climate Change and Environment’s (MoCCAE) newly launched plan to position the emirates as a leading global ecotourism destination ranks among the most ambitious of its kind initiated anywhere in the world.

Saudi Arabia held dominant position in the Ecotourism in GCC market in 2020, accounting for 40% share in terms of volume, followed by UAE and Kuwait, respectively. Growing preferences among travel lovers for ecotourism in the country is the major driving force.

Figure 1. Global Ecotourism in GCC Market Value (US$ Mn), by Country, 2020

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Drivers:

Growing preferences among travel lovers for ecotourism in GCC countries is primarily fueling the market growth of ecotourism. According to World Travel and Tourism Council (WTTC), in Saudi Arabia, the total contribution of travel and tourism was 154.1 billion dirhams ($41.95 billion) or 11.3 percent of GDP in 2017. It is forecast to rise by 4.9 percent in 2018. By 2028, the sector will represent 10.6 percent of GDP. Thus, growing ecotourism in the GCC region is expected to propel the market growth.

Many GCC countries are converting their cities into a tourist destination is expected to propel the market growth of ecotourism. Dubai, Doha, and Manama are some of the major countries that are focusing on enhancing the quality of place, diversity, and culture, in order to make it a tourist destination. Thus augmenting these cities as tourist places in order to appeal tourist is expected to foster the market growth of the ecotourism in GCC. 

Market Opportunities

Increasing visiting of tourist from a convenient location such as Europe and the U.S. to GCC region is expected to bring new market opportunities. Increasing focus of GCC government to offer different adventure and wild-life related packages and activities and also enhance the shopping experiences of the consumers is expected to augment the market growth. All these factors are expected to fuel the market growth of ecotourism in GCC.

Increasing hospitality sectors such as hotels and restaurants in the GCC region is projected to provide immense opportunities to the market of ecotourism in GCC. According to the data from Alpen Capital, the GCC hospitality market is projected to reach US$ 32.5 billion in 2022 from an estimated US$ 22.9 billion in 2017. Moreover, between 2017 and 2022, GCC hotel supply is expected to grow at a CAGR of 4.01%.

Market Trends

Changing lifestyle and increasing disposable income of the consumer is increasing their spending on travel activities. This is expected to be a major trend in the market. A growing number of inbound tourist coupled with the growing focus of the government on promoting environmental conservation and nature protection is also expected to bolster the market growth of ecotourism in GCC over the forecast period.

The growing popularity of cruising in the region is expected to be a major trend in ecotourism in GCC. Moreover, the growing focus of the travelers to indulge in adventurous outdoor activities are again expected to foster the market growth of the ecotourism in GCC. In addition to this growing number of golf courses and beach resorts to attract urban tourist attractions is further anticipated to augment the market growth of ecotourism in GCC.

Figure 2. Global Ecotourism in GCC Market Share, By Category, 2020

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Key Takeaways of the Graph:

• The Nature in category type held dominant position in the market and accounted for 48% share in the Ecotourism in GCC market in 2020. The segment is expected to reach US$ 362.76 million in 2028.
• Increasing focus of GCC government to offer different adventure and wild-life related packages and activities and also enhance the shopping experiences of the consumers is expected to augment the market growth.

Market Restraints

The risk associated with the ecotourism while exploring new regions restricts the market growth of the ecotourism in GCC.

The extremely hot condition in the GCC countries up to 9 months out of the year is projected to limit the market growth of the ecotourism in GCC.

Competitive Section:

Hotels

• Ramada Worldwide
• Jumeirah
• Le Meridien

Airlines

• Emirates
• Qatar
• Gulf air

Tour and Travel Operators

• Thomas Cook