Outbound travel trends in the Middle East and Africa
Alysia Cameron-Davies takes a close look at outbound travel patterns in the Middle East and Africa (MEA) and the regional market trends
The Covid-19 pandemic and unpredictable geopolitical issues have caused significant disruptions to the travel industry in recent years. Restricting travel during the pandemic had a huge impact on the tourism sector, but many countries have now regained their pre-pandemic levels of tourism, and some are even experiencing growth. Some commentators have linked surges in travel following the lifting of Covid-19 restrictions to the ‘revenge travel’ phenomenon, where travellers, eager to make up for lost time, take to the skies.
Recovery of the travel market
The UN World Tourism Organization (UN Tourism) identified the Middle East as the only global region to have not only recuperated international inbound traffic levels, but also demonstrated growth of 20% in the first half of 2023 compared with the same period in 2019.
Hosting the FIFA World Cup in Qatar at the end of 2022 was a pivotal event that facilitated the rebound of the tourism sector in the Middle East, bringing an influx of arrivals to the region. In November and December 2022, inbound traffic into Qatar was more than three times higher than in preceding months, according to figures from Qatar Tourism. In Mastercard’s Travel Industry Trends 2023 report, increased air transport networks, simplified visa processes, and marketing initiatives were also highlighted as key factors contributing to the recovery and growth of the international tourism market in the Middle East.
Hosting the FIFA World Cup in Qatar at the end of 2022 was a pivotal event that facilitated the rebound of the tourism sector in the Middle East, bringing an influx of arrivals to the region
Behind the Middle East on the road to recovery were Africa and Europe. While they did not witness growth compared with 2019, international arrivals nearly reached pre-pandemic levels, standing at 92% for Africa and 91% for Europe, as per UN Tourism data.
Although leisure travel has recovered faster, business travel is making a strong comeback in the MEA region. In 2022, MEA business travel reached 86% of levels recorded in 2019, according to data from the Global Business Travel Association.
Outbound travel from Middle East and North Africa
During the initial quarter of 2023, Egypt and the Kingdom of Saudi Arabia (KSA) secured the top two positions on the Wego leadership board of favoured destinations for Middle East and North Africa (MENA) travellers, followed by India and the United Arab Emirates (UAE).
Among the top 16 destinations, India, Pakistan, Thailand, the UK, Indonesia, the US and the Philippines were the only non-MEA destinations. A subsequent Wego report linked the demand for travel to the Philippines, India, and Pakistan with home visits made by individuals from those countries residing in MENA.
The Middle East emerged as the prime destination for MEA travellers in 2023. According to a report from Dentsu, Travel DNA: Motivations & Trends in KSA and UAE 2023, the tourism sector in the Middle East experienced a remarkable growth rate of 132% in the first quarter of 2023.
In the final period of 2023, according to Wego data, the Egyptian capital, Cairo, emerged as the number one destination for MENA travellers. Wego’s report, released in December 2023, attributed the trend to reduced flight prices, noting that inbound flights from the Gulf Cooperation Council (GCC) region to the capital were 35% cheaper than the previous year. In comparison with pre-pandemic figures from 2019, the flight routes to Cairo from Riyadh and Kuwait experienced cost reductions of 112.81% and 62% respectively. Flights to Istanbul, Lahore and London were also highlighted for their reductions, with airfares from Saudi Arabia to Istanbul decreasing by 31.86%.
Additionally, Cairo stood out as the top choice for domestic travellers, based on a Wego study from January to October 2023, with other popular Egyptian destinations including Sharm El Sheikh, Hurghada, Aswan, and Luxor.
Internationally, Wego reported the most sought-after destinations for travellers from Egypt were Kuwait, Dubai, Doha, and Muscat.
Travel patterns in Saudi Arabia and UAE
Alongside Egypt, Saudi Arabia stood out as a favoured destination within the Middle East.
In its 2023 Global Travel Trends report, ForwardKeys explained that Saudi Arabia experiences spikes in inbound traffic during periods of religious celebrations. Juan A Gómez, Head of Market Intelligence at ForwardKeys, identified the Hajj pilgrimage to Mecca and Eid al-Fitr as two key events that drive travel in the region. According to ForwardKeys’ data, inbound traffic during these events originates primarily from other regions in the Middle East but also includes Africa, and the main motive for travel is participating in festivities and visiting friends and family.
Developments in the leisure sector elevate domestic tourism
Dentsu explained that enhanced entertainment and leisure facilities have contributed to growth in the domestic tourism sector in Saudi Arabia. Figures showed a 7% increase in domestic travel bookings in Saudi Arabia during their summer season from June to September in 2023.
During the summer months, a desire to escape the heat and explore cooler climates usually drives international outbound travel in Saudi Arabia and UAE. According to a YouGov study, 71% of residents interviewed in May 2023 intended to spend longer in their respective countries during the summer season. Half of Saudi Arabia and 42% of UAE residents pointed to the improved leisure sector as the main reason for their decision.
Within Saudi Arabia, Jeddah, Riyadh, Dammam, Abha, and Medina emerged as the most popular destinations for domestic travellers in 2023, as per Wego’s findings.
Saudia Arabia’s Vision 2030 strategy includes futuristic projects aimed at developing and enriching the tourism sector to attract even more domestic and international visitors all year round.
Despite the rise in domestic activity, YouGov revealed international breaks were still popular among Saudi Arabia and UAE residents, with 81% expressing the intention to holiday abroad. For those choosing to leave the Middle East, the top international destinations were Asia and Europe. Africa stood in third place with 15% of interviewees planning a vacation there.
Wego named Cairo, Istanbul, Dubai, Jakarta, and Lahore as the top destinations for Saudi travellers venturing abroad between January and October 2023.
YouGov data identified a correlation between age and the duration of holidays, observing that travellers older than 35 were inclined towards longer trips of a month or more, while the younger age bracket (18–24) were planning shorter holidays of a week or less. Additionally, they observed that longer trips were more popular among UAE residents, with Africa being the top destination for extended vacations outside the Middle East.
The tourism sector in the Middle East experienced a remarkable growth rate of 132% in the first quarter of 2023
Dentsu picked out ‘meaningful experiences’ and luxury as key criteria for Saudi residents when booking their trips in 2023. The company found that 66% of travellers engaged in memorable experiences while 50% opted for luxury.
Growth in the South African travel market
According to data from Statistics South Africa, published on the South African government website, between January and July 2023 the country received 4.8 million international tourists.
Of those, 32,016 arrived from the Middle East, marking an increase of 63.6% compared with the previous year. The report highlights the substantial growth rate in tourism from Saudi Arabia and the UAE, with South Africa welcoming a total of 9,425 Saudi and 3,923 UAE residents during the given period in 2023. Residents from elsewhere in Africa made up 75.8% of arrivals.
The government’s report detected a significant rise in inbound tourism from Zimbabwe and Kenya compared with the same period in 2022. Zimbabwe experienced a growth rate of 115.6% with a total of 1.2 million residents arriving in South Africa, whilst Kenya experienced a growth rate of 110.2% with 21,851 arrivals.
Quoted in the report, Patricia de Lille, the Minister of Tourism, attributes the influx of Kenyan tourists to updated visa requirements that came into effect in January. “The rest of the African continent has always been vital to our tourism landscape, and strengthened ties,” she said. “It is clear that more reviews and revisions of the immigration regulations and visa requirements are required as evidenced by the surge in arrivals from Kenya. As of January 1, 2023, Kenyans enjoy visa-free travel to South Africa for a period of 90 days in a year.”
The report indicated a 23.4% increase in domestic travel within South Africa in the first half of 2023 compared with the previous year, with a total of 18.8 million overnight trips taken nationally.
According to a Think Google consumer insight report published in March 2022, income was a factor that affected South African travellers when choosing their destination. The survey found that those earning less than R50,000 a month opted to travel domestically in South Africa or to other countries on the continent, while those earning above R50,000 were more inclined to travel outside of Africa.
A study by Wesgro forecasted that, in 2023, the largest expenditure for South Africans would be leisure travel, exceeding that of business travel, accommodation, and experiences.
ForwardKeys named the US, Canada, and Europe as the top sources of international tourism in sub-Saharan Africa. Specifically, they highlighted the success of Tanzania, Cabo Verde, Rwanda, and Namibia in recovering and expanding the tourism industry between 2019 and 2023, following the pandemic. Two crucial factors aiding tourism recovery in the region were said to be enhanced air connectivity and Safari tourism attracting visitors.
Growth in the travel insurance market in MEA
In recent years the MEA region has seen a rise in demand for comprehensive travel insurance among its residents. BlueWeave Consulting attributed this to various factors, including growth in the international travel market, heightened awareness of the risks of travelling without coverage, government-led campaigns to promote insurance, and increased wealth and expansion of the middle class. Additionally, the company pointed to digital advancements facilitating the purchase of insurance and the growing popularity of adventure tourism, leading to increased demand for extensive coverage. In its report, BlueWeave Consulting stated that in 2022 the value of the MEA travel insurance market was believed to be around US$724.4 million dollars, and that by 2029 it would be worth approximately $3.47 billion.
Based on its findings, BlueWeave Consulting indicated that annual multi-trip policies were the most solicited among MEA customers, underscoring the growing business and leisure travel industry in the region. According to its data, family travel policies were the most sought-after, surpassing those for senior citizens, education travellers, and business travellers. The Gulf countries were identified as market leaders within MEA, showcasing the highest demand for travel insurance. The report attributed this to the growing tourism sector and flourishing economy in the region.
The Hajj pilgrimage to Mecca and Eid al-Fitr are two key events that drive travel in the region
A look to the future
BlueWeave Consulting predicts substantial growth for the travel insurance market as the MEA travel sector expands. The company also draws upon potential challenges ahead for the industry. It outlines economic instability, changing policies, and geopolitical problems as primary obstacles that affect the market, presenting challenges for both providers and consumers. Although the current geopolitical tensions have challenged the market, a surge in demand for comprehensive cover has been seen among MEA clients due to increased awareness of potential risks. In these uncertain times, BlueWeave Consulting emphasises that adaptability is key and something insurers must consider to ensure they continue to meet clients’ needs and provide effective risk assessment, reassurance, and protection.