During the Arabian Travel Market, VIDEC unveiled a new study projecting that the total air travel market in the UAE will reach $5.4 billion by 2028, up from $4.2 billion in 2024, reflecting a 6.9% compound annual growth rate (CAGR) and a 32% increase compared to 2019. The estimates are based on a demand-side methodology that evaluates market opportunities based on bookings made from local points of sale.
The study, titled “VIDEC Assessment of the Travel Market and Online Travel Agency Standards”, covers the period from 2019 to 2028 and highlights the fastest-growing segments, market forecasts, and key distribution trends shaping each market.
VIDEC’s Founder and CEO, Virendra Jain, noted that the UAE, Saudi Arabia, and India share young, digitally connected populations with strong purchasing power — factors that contribute to the rapid growth of the online travel sector. The UAE’s globalized nature and status as a major shopping hub also make it a preferred destination for both Saudis and Indians. The three countries share cultural and religious ties, and are supported by excellent air connectivity. Religious tourism, luxury travel, scenic flights, and wellness tourism are among the main drivers expected to sustain strong growth in this travel corridor.
The study estimated that online flight bookings through travel agencies in the UAE totaled $679 million in 2024, a 20% increase over the previous year. Meanwhile, direct bookings through airline websites and apps accounted for 56% of total online flight bookings, representing a market worth $851 million, or one-fifth of the UAE’s total air ticket value.
On the second day of the exhibition, Tourism Economics, a subsidiary of Oxford Economics, shared insights from its report titled “Arabian Travel Market Trends: Leisure, Luxury, and MICE – Leading Trends in the Middle East.”
Dave Goodger, Managing Director for Europe, the Middle East, and Africa at Tourism Economics, noted that global travel is set to reach new record levels this year, returning to pre-pandemic growth patterns amid recovering domestic and international demand worldwide. He added that the Middle East is a popular tourism destination, and GCC countries are seeing growth rates above the global average, with over 85% of expected accommodation demand growth in the region coming from international travel.
In a session titled “Partnering for Progress: Unlocking Tourism Growth through Innovative Collaboration,” travel services provider Trip.com Group shared its perspectives on the region’s immense potential. CEO Jane Sun highlighted the Middle East’s strategic position connecting Europe, Africa, and Asia, noting that simplified visa policies, expanded direct flights, and significant tourism investments have fueled its rapid recovery ; especially in leisure, educational, and senior travel segments.