Middle East travel: Shaping the future through growth and innovation

Driven by massive public investment and global events, the Middle East’s travel market is in the midst of an unprecedented boom.

In 2024, Dubai saw 18.72 million visitors, up 9% from 2023, and Abu Dhabi welcomed about 4.8 million hotel guests through October 2024—a 26% year-over-year increase. Likewise, Saudi Arabia posted record tourism: roughly 30 million international visitors in 2024, thanks to new visas and mega-projects.

Overall, Middle East tourism now far outpaces local GDP growth. According to Phocuswright's Middle East Travel Market Report 2025, this surge reflects “one of the world’s most ambitious transformations” in travel, with destinations like the UAE, Saudi Arabia, Qatar and Egypt emerging as global tourism powerhouses.

Tech frontiers: AI, biometrics and tokenization

In addition to building islands and hotels, the Middle East is aggressively adopting cutting-edge travel tech.

Generative AI and automation

Artificial intelligence (AI) is reshaping travel planning and operations. Globally, a recent survey found that over one third of leisure travelers have used generative AI for trip planning, and 44% now trust AI recommendations throughout booking.

Middle Eastern travelers are enthusiastic adopters. One study conducted by Wyndham Hotels and Resorts showed that 79% of Gen Z travelers in the UAE already use or want to use AI tools to design trips. Travel companies in the region are piloting AI chatbots, dynamic packaging and even autonomous “travel agents” that can book complex itineraries.

As AI agents become capable of web-browsing and booking (as predicted for 2025), Middle Eastern online travel agencies (OTAs) and airlines see this as an opportunity to personalize service and regain loyalty, given their tech-savvy customer base.

Biometric border control and digital ID

The Gulf is pioneering frictionless travel through biometrics. This year, Dubai International Airport launched an AI-powered immigration corridor that clears eligible passengers in about 14 seconds without showing passports. Flydubai and other carriers have added facial recognition smart gates for crew, reducing paperwork and wait times. These initiatives are part of Dubai’s “Unlimited Smart Travel” vision, moving toward a fully borderless passenger experience.

Similarly, discussions are underway about blockchain digital IDs for travelers (e.g. the World Economic Forum and Accenture’s Known Traveler Digital Identity) that would let passengers share certified identity data instantly at borders.

In short, the Gulf’s airports and tourism authorities are aiming for seamless, app-driven travel where passports and visas become largely digital and biometric.

Tokenization and blockchain

The Middle East is also exploring blockchain for travel assets and payments. Airlines and hotels are experimenting with non-fungible token (NFT)-based tickets and bookings to curb fraud and resale. For example, blockchain startups are issuing NFTs for hotel reservations, creating a secondary marketplace for travelers to resell rooms.

On the payment side, major carriers are embracing crypto: Emirates signed a deal with Crypto.com so that, starting next year, customers can book flights with cryptocurrencies. Air Arabia has similarly announced acceptance of a UAE digital coin for bookings.

In the longer term, analysts envision an era where consumers could declare travel needs on a digital marketplace and have airlines/hotels bid in tokens, fundamentally altering distribution and pricing. (This is consistent with Phocuswright’s vision of a “fully tokenized” travel economy where smart contracts handle refunds and transfers.)

Emerging destinations and new hubs

Beyond the traditional magnets (Dubai, Abu Dhabi, Doha), the region is cultivating new tourism hubs:

Saudi Arabia: Under Vision 2030, Saudi has rapidly transformed. Giga projects like NEOM (including the Trojena ski destination), the Red Sea Project (luxury eco-resorts), Diriyah (historic capital) and Qiddiya are redefining Middle East tourism. These focus on high-end, sustainable tourism; for example, Diriyah alone aims for 27 million visitors annually by 2030. Billions are being poured into hotels and theme parks, and Saudi’s eVisa rollout (for 66 countries) is making travel easier.
Oman: Oman is upgrading its resorts and air links. In a strategic partnership, Oman’s development agency signed on with TUI to build five beach resort hotels in Dhofar (Salalah) by 2028. This cluster, part of Oman Vision 2040, aims to make Oman a year-round beach and cultural destination. Other projects (Muscat Bay, Al Mouj Oman) and improved airports are boosting visitor growth. In fact, Oman welcomed roughly 3.9 million tourists in 2024, with tourism revenues rising by double digits, signaling strong momentum.
Egypt:  Egypt has seen a tourism revival.  It posted about 8.7 million visitors in the first half of 2025 (a 24% jump versus 2024), on track to hit its 18 million annual target. Tourism receipts hit a record $15.3 billion in 2024. The government’s new $1.03 billion hotel expansion plan and mega-projects on the Red Sea and North Coast (e.g. Marassi, Ras el Hekma) are key drivers. As travelers rediscover Egypt’s heritage (pyramids, Nile cruises) and new luxury resorts, tourism is cited as one of the fastest growing markets globally.
Other Highlights: Qatar and Bahrain continue to invest in tourism infrastructure, and Iran has eased visa rules, though its travel is still limited. Within the UAE, Abu Dhabi is also pushing growth (4.8 million hotel guests in 2024 through October) via cultural projects and new air routes. Overall, capital flows are diversifying; investors see big returns in any Gulf country that opens its doors.

A thriving innovation ecosystem

All of these changes have spurred a startup boom in Middle East and North Africa (MENA) travel tech. Funding into regional tech ventures has exploded. For instance, July 2025 saw $783 million raised across MENA startups (a 1,411% surge month-on-month). Saudi Arabia and the UAE led these deals (together raising roughly $755 million in July) as investors poured into sectors like e-commerce, fintech and travel tech.

Governments are actively enabling this: Saudi’s Vision 2030 and UAE’s various accelerators prioritize travel and hospitality tech. As a result, Middle Eastern travel startups today are going beyond booking platforms to offer end-to-end digital experiences—from AI itinerary planners to on-demand wellness travel.

The Middle East’s travel transformation offers both a blueprint and a warning. This region has coupled visionary leadership with bold innovation: modern tourism infrastructure side-by-side with AI-powered service. The Middle East’s rise implies that global travel standards of tomorrow (in convenience, personalization and technology) may well be set there. Stakeholders must pay attention: The strategies playing out under the desert sun—agile tech adoption, immersive cultural product and tokenized commerce—are likely to echo across the world’s travel industry in the years ahead.