The World Travel & Tourism Council (WTTC) expects the travel and tourism sector's contribution to the Middle East's GDP to fall 14.5% in 2026, from $386 billion in 2025 to $330 billion.
In its latest Economic Impact Trends report, the council said the Middle East will be the only region in the world to record a decline in travel and tourism GDP this year, as conflicts affect airspace and travel, according to a post on the council's website.
The region accounts for about 14% of international passenger traffic worldwide, the equivalent of one in every 7 travelers, given its role as a major aviation hub connecting international markets.
Annual growth of 6.3% expected through 2036
Despite the expected short-term decline, the council expects the Middle East to become the world's fastest-growing region in travel and tourism between 2026 and 2036.
The sector's contribution to the region's GDP is expected to grow at an annual rate of 6.3%, reaching $605 billion by 2036.
Saudi Arabia, the UAE, Oman and Qatar lead the growth forecasts, after travel and tourism's contribution to the four countries' economies combined reached $272 billion in 2025.
The report expects the sector's contribution in these countries to rise to $435 billion by 2036, an increase of more than $163 billion.
Saudi Arabia leads the tourism transformation
Travel and tourism accounts for 14.1% of GDP in Saudi Arabia, and international visitor spending is expected to more than double over the next decade.
Investment in the sector in the Kingdom grew 19.4% in 2025, supported by giga tourism projects, investment reforms and the goals of Saudi Vision 2030.
In the UAE, the sector contributes 11.9% of GDP and supports 13.6% of all jobs, while international visitor spending is approaching $57 billion.
The report expects Oman's travel and tourism economy to grow from $7.9 billion to $12 billion by 2036.
In Qatar, visitor spending accounts for 94.1% of total services exports, one of the highest shares of services exports dependent on tourism in the region.
The council stressed that the sector's recovery requires continued coordination between governments and the private sector, clear policies, effective communication and continued investment in infrastructure, air connectivity and destination development.
To view the post on the World Travel & Tourism Council website, click here.
