Rise in luxury & tourism hospitality

Bringing together top-tier hospitality brands, influential industry figures, and innovative travel destinations, the event will showcase the latest trends shaping the high-end travel segment. According to McKinsey and Company research, luxury tourism and hospitality will reach US$ 391 billion by 2028 with Asia advances in the market segment.

TT Bureau

Demand for luxury tourism and hospitality is likely to grow faster than any other industry. This is mainly due to the rising number of high-net-worth individuals (HNWIs) globally, and a growing segment of aspiring luxury travellers willing to allocate larger proportions of their income to premium experiences, according to McKinsey and Company.

The research suggests luxury tourism and hospitality will reach
US$ 391 billion by 2028, up from US$ 239 billion in 2023, with Asia gaining significant ground in the Middle East luxury market segment. Data recently issued by Statistical Centre for the Cooperation Council for the Arab countries of the Gulf revealed GCC nations earned US$ 110.4 billion in global tourism revenues in 2023. The largest share of tourists came from the Asia-Pacific region (38%), followed by the Middle East (25.1%), Europe (22.9%), Africa (8.8%), and Americas (4.3%).

“The increase in inbound tourism from Asia and the growing wealth in this region created a major opportunity for Middle Eastern tourism, especially in the luxury sector. Asia is among the fastest-growing markets, boasting a 27 per cent increase in exhibitors from the Middle East region this year. NTOs from Japan, Maldives, South Korea, India and Thailand are driving this growth, alongside regional tourist boards such as Rajasthan Tourism, Goa, Phuket, Hong Kong and Jakarta, all contributing to Asia’s expanding presence at ATM 2025 and the growing focus on luxury travel,” said Danielle Curtis, Exhibition Director, Middle East, Arabian Travel Market. The GCC is positioned to cater to high-net-worth travellers seeking leading hotels and exclusive experiences. To meet rising demand, GCC nations are on track to add 400,000 hotel rooms by 2030, following the addition of 35,000 rooms in the last decade.

The travel show will feature top-rated luxury destinations of the world’s, such as the Maldives, Mauritius, and Peru, which will return to the ATM fold after 10 years. Travellers will be able to discover the country’s luxury offerings, including glamping in the Ica Desert and the Sacred Valley, luxury Amazon cruises, and train journeys across the Andes, where beautiful landscapes meet world-class service.

Famous hospitality brands will also be showcased, including Mandarin Oriental, Four Seasons Hotels & Resorts, Jumeirah International, One & Only, Kempinski Hotels, The Address Hotels & Resorts and the leading hotels of the world.

Luxury travel is changing in terms of consumer preferences, with travellers prioritising luxury cultural, artistic, and adventure-driven experiences. Sustainability has become a key focus, particularly in the GCC, where hotels are implementing eco-friendly initiatives to align with the growing preference for responsible and high-end travel.

Accessibility is reshaping luxury travel, with emerging destinations benefitting from improved connectivity and development of boutique hotels, eco resorts and exclusive retreats. This trend is reflected in the theme for ATM 2025: Global Travel: Developing Tomorrow’s Tourism Through Enhanced Connectivity, which focuses on how better connectivity
enables more sustainable, inclusive, and globally integrated travel and tourism industry.

Last year at ATM, Mastercard unveiled its Affluent Travel Report, which highlighted the MENA as the leading market for luxury outbound travel, with KSA and the UAE emerging as the top source markets. Research from Mastercard in 2023 suggests GCC travellers are among the world’s highest spenders, with Kuwaiti travellers to Paris spend five times more than American tourists.

“MENA has set the pace for luxury outbound travel, making it a priority market for high-end travel and tourism providers. ATM 2025 will offer in-depth insights into luxury travel preferences, networking opportunities with stakeholders. For anyone looking to capitalise on this market, ATM 2025 is an unmissable event,” said Curtis. ATM is the leading global event for the inbound and outbound travel industry in the Middle East and is set to host 47,000 attendees this year. Uniting a global experts from leisure, luxury, biz events and corporate travel, the event generates
US$ 2.5 billion in deals annually. For 30 years, ATM has linked products and destinations with buyers and travel trade visitors.