The latest forecasts show that geopolitical developments have temporarily affected traveller confidence and disrupted aviation and hospitality markets across parts of the region. However, the long-term tourism outlook remains positive as market stability gradually returns.
Destinations with established tourism infrastructure, global connectivity and continued investment are expected to recover quickly. This recovery could create new opportunities for destinations, hospitality providers, airlines and tourism businesses worldwide.
Regional travel spending forecast to rise 47.7%
Euromonitor International’s research, Travel in an Age of Poly-Crisis, forecasts that travel spending across the Middle East and Africa will increase by 47.7% between 2025 and 2030. The projected growth would add more than US$50 billion to the regional travel economy.
The findings show that travellers continue to prioritise experiences despite inflationary pressure. Global travel expenditure has now exceeded pre-pandemic levels and is growing faster than gross domestic product in many markets.
Research from STR and Euromonitor identifies three trends expected to shape the next phase of tourism. The first is that travel demand has evolved rather than weakened.
Instead of cancelling trips, consumers are increasingly adjusting their travel behaviour. They are favouring regional destinations, seeking greater flexibility and placing more value on meaningful experiences.
According to Euromonitor, spending on experiences continues to outperform traditional tourism expenditure. Digital engagement has also become an essential part of the traveller journey.
Traveller confidence to influence hotel recovery
The second trend concerns the role of confidence in determining the speed of recovery. STR’s latest hospitality outlook indicates that hotel performance across key Middle Eastern markets should strengthen steadily as safety perceptions improve.
The return of air connectivity and the resumption of destination marketing at full strength are also expected to support recovery. Markets with diversified demand, established tourism ecosystems and long-term investment are forecast to recover most rapidly as traveller confidence returns.
The third trend focuses on innovation as an increasingly important competitive factor. Euromonitor identifies artificial intelligence-powered customer journeys, predictive support, seamless digital experiences and hyper-personalisation as key differentiators.
Hospitality businesses are also placing greater emphasis on revenue optimisation and experience-led strategies. These approaches aim to address changing traveller expectations and improve commercial resilience.
ATM 2026 to present research findings
The research findings align with the theme of ATM 2026, Travel 2040: Driving New Frontiers Through Innovation and Technology. The theme examines how resilience, innovation and changing traveller expectations are redefining the future of global tourism.
ATM 2026 will take place from 14 to 17 September at the Dubai World Trade Centre. The event will present the exclusive findings from both research organisations as part of its conference programme.
Danielle Curtis, Regional Portfolio Director – UAE at RX Global, said: “Periods of uncertainty often accelerate change, and today’s travel industry is already adapting faster than many anticipated. What is particularly encouraging from the latest research is that traveller confidence has not disappeared; it has evolved. Consumers continue to prioritise travel, destinations are responding with greater agility, and technology is enabling businesses to become more resilient than ever before.”
On the Global Stage, Euromonitor International will present The State of Travel: Inflation, Polycrisis & the New Travel Reality. The session will examine how inflation, geopolitical uncertainty and changing consumer priorities are reshaping travel demand and creating new opportunities for destinations and businesses.
STR will contribute two sessions during ATM 2026. The first, Decoding Hospitality Growth – What Do Today’s Travellers Want?, will take place on the Future Stage and examine evolving traveller expectations.
The session will also consider how hospitality brands can respond through experience-led strategies. STR will additionally host the Hospitality Roundtable: Rebooting Hotel Revenue, Where to Start? in the Experience Hub.
The interactive roundtable will bring together hospitality professionals to discuss practical commercial strategies, operational resilience and revenue recovery.
Curtis added: “At ATM, our role extends beyond bringing the industry together. We are committed to providing the insights, research and strategic conversations that help destinations and businesses navigate change with confidence. By welcoming leading research organisations such as STR and Euromonitor International, alongside thousands of industry decision-makers, ATM creates a platform where the global travel community can move beyond responding to today’s challenges and begin shaping tomorrow’s opportunities,”
Against a backdrop of changing market conditions, ATM 2026 will provide an international forum for destinations, tourism authorities, hotel groups, airlines, technology providers and investors. Participants will examine current research, exchange practical strategies and identify opportunities linked to the next phase of tourism growth.
The event will also position Dubai as a global platform for collaboration, innovation and long-term travel industry resilience.
Tags: Danielle Curtis Arabian Travel Market STR Euromonitor International
