SHIFTING SAND DUNES
there is improved connectivity with the rest of the world throughout the region, coupled with ongoing real estate developments, notably in hospitality, the region captures only five percent of global tourism, which suggests plenty of opportunities for regional tourism growth. Despite the mid-term challenges, increased development and operational costs, reduced profitability, lack of financing, oversupply, terrorism and instability, the long-term outlook remains positive for the region. The economic reforms in Egypt have already shown visible positive results on the economy. The hospitality market in Egypt is making a recovery and attracting more foreign direct investment. The Saudi Arabia Vision 2030 is expected to attract significant investment in a variety of industries, with a focus on improving both religious and conventional tourism. The most recent announcements of mega recreational and hospitality developments are a testament to the planned diversification of the market offering. Expo 2020 and the ongoing commitment of the UAE government to further strengthen the non-oil sector continues to drive growth, albeit at a slower pace. Airport arrivals and hotel guests’ data suggest year on year, growth coupled with solid and varied tourism infrastructure. The remaining cities in the Arab world are also experiencing increased levels of investment, although the growth of the tourism sector has historically been slower than the more established and mature economies. Long-term tourism indicators and forecasts support further investment and development of the hospitality sector. Investors eyeing the hospitality space are being advised to undertake proper financial assessments to evaluate risks associated with such investments and that governments monitor closely the development of this sector in order to ensure a well-balanced offering supported by diversified demand drivers.