GCC Halal Tourism Market

GCC Halal Tourism Market Overview:

The GCC halal tourism market size reached USD 7.2 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 12.8 Billion by 2033, exhibiting a growth rate (CAGR) of 5.84% during 2025-2033. The growing Muslim population with increasing disposable incomes, favorable government initiatives, and rising focus on providing customized experiences like halal-certified food and culturally appropriate amenities are some of the factors impelling the market growth.

GCC Halal Tourism Market Analysis:

• Major Market Drivers: The market is experiencing moderate growth owing to the inflating disposable income levels of Muslim communities, government backing for tourism projects, and the rising recognition of halal travel criteria. Improved infrastructure and focused marketing campaigns also play a major role in driving the market expansion.
• Key Market Trends: Prominent trends include the rise in halal-friendly hotels and restaurants, the creation of culturally sensitive travel packages, and the utilization of digital platforms to market halal tourism.
• Competitive Landscape: There is fierce competition in the market, with numerous major competitors providing a range of halal-certified services and products. Companies are focusing on differentiating their services by enhancing cultural experiences and ensuring adherence to halal standards.
• Challenges and Opportunities: Challenges consist of maintaining uniform halal standards throughout the region and dealing with cultural sensitivities. Nevertheless, there are many opportunities to diversify halal-certified services, utilizing technology for customized travel experiences and catering to the growing demand from younger Muslim travelers.

GCC Halal Tourism Market Trends:

Demographic and Economic Factors

The market is primarily driven by demographic and economic factors, including a rapidly growing Muslim population with increasing disposable incomes. The young population in the area shows a strong interest in traveling and discovering new places that resonate with their religious and cultural beliefs. Economic expansion in GCC nations is improving the buying power of people, allowing them to allocate more money towards travel and recreational pursuits. Additionally, there is an increase in the need for services and facilities that adhere to halal standards, including lodging, dining, and entertainment options. The strong economy of GCC countries enables notable investments in tourism infrastructure, improving the attractiveness and convenience of halal tourism for tourists from both local and foreign origins. It is anticipated that there will be an increase in economic growth in the GCC region to 2.8% in 2024 and 4.7% in 2025, as per the Spring 2024 Gulf Economic Update (GEU) released by the World Bank.

Favorable Initiatives and Policies

GCC authorities are actively encouraging halal tourism through different strategic initiatives with the goal of expanding the economy and enhancing tourism. These projects involve creating a large amount of halal-friendly infrastructure, such as hotels, resorts, and transportation systems, specifically tailored to meet the needs of Muslim tourists. They are also enforcing strict standards and certifications to guarantee that services and facilities adhere to halal principles, improving the credibility and attractiveness of these destinations. Moreover, money is being assigned for marketing campaigns and participating in international tourism conferences to attract a broader range of Muslim tourists. Policy backing also includes simplifying visa procedures, enhancing travel convenience, and providing financial benefits to promote private sector participation in the halal tourism sector. In December 2023, Red Sea Global announced a new mid-market development project near Jeddah to offer reasonably priced hotel choices for the numerous travelers. The project's goal was to appeal to religious tourists going to Makkah, encouraging them to prolong their visits by offering budget-friendly family holidays. This effort was a component of the wider Red Sea development plan aimed at broadening and enhancing Saudi Arabia's tourism options.

Strategic Expansion and Cultural Adaptation in Tourism

Tourism operators are appealing to a wider range of individuals by providing customized experiences like halal-certified food and culturally appropriate amenities. This method improves the attraction of a location and makes sure travelers feel acknowledged, and their preferences are taken care of. These specific services can result in higher satisfaction and loyalty, which can, in turn, increase tourism and aid in the economic growth of the area. Furthermore, by implementing successful marketing strategies, these services can be promoted to increase visibility and draw in more tourists, resulting in the continuous development of the tourism industry. This emphasis on cultural diversity and personalized services showcases how companies can successfully target specialized markets. For instance, Resorts World Cruises revealed plans to extend its Arabian Gulf presence as Resorts World One will be homeported in Dubai from October 18, 2024, to April 13, 2025. The cruise provided halal-certified food, high-quality facilities, and varied travel plans, with the goal of boosting Gulf tourism through the attraction of 150,000 passengers in half a year. This program aimed to enhance cruise tourism in the region by offering a variety of dining and entertainment choices to cater to all types of travelers.

GCC Halal Tourism Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the regional and country levels for 2025-2033. Our report has categorized the market based on tour type, tourist type, purpose, and budget.

Breakup by Tour Type:

• Domestic Tourism
• International Tourism
   

The report has provided a detailed breakup and analysis of the market based on the tour type. This includes domestic tourism and international tourism.

Domestic tourism is characterized by the growing preference for short, religiously compliant getaways and staycations. This segment is primarily influenced by the local Muslim community searching for places that provide services and amenities certified as halal, including family-oriented resorts, halal dining choices, and prayer areas. Key domestic tourism destinations in Saudi Arabia are religious sites such as Makkah and Madinah, while the UAE and Oman offer culturally vibrant locations. Government efforts to improve domestic tourism, along with the ease of travel in the area, are bolstering the market growth.

International tourism attracts individuals who wants to visit different countries of the GCC region for its rich Islamic heritage and modern amenities. Travel between GCC countries is particularly appealing due to shared cultural and religious values, ease of travel, and the high level of halal tourism infrastructure. Popular intra-GCC destinations include Dubai and Abu Dhabi in the UAE, Doha in Qatar, and Muscat in Oman, each offering a blend of tradition, luxury, and family-friendly activities. Efforts by GCC tourism boards to promote inter-regional travel, combined with visa facilitation and marketing campaigns, enhance the appeal of the GCC as a premier destination for international halal tourism.

Breakup by Tourist Type:

• Independent
• Tour Group
• Package Traveler
   

A detailed breakup and analysis of the market based on the tourist type have also been provided in the report. This includes independent, tour group, and package traveler.

Independent includes individuals or small groups who do not depend on pre-arranged tour packages. This segment favors the ability and independence to tailor their plans to match their tastes and timetables. Independent tourist frequently utilizes online platforms to reserve accommodations, flights, and activities that cater to halal requirements.

Tour group consists of travelers who appreciate the convenience and social aspects of traveling with a group, usually led by a tour guide. This part is for people looking for structured itineraries and the convenience of traveling with others who share similar values, guaranteeing that all their travel plans comply with halal guidelines.

Package traveler choose all-inclusive deals, such as transportation, lodging, meals, and activities, arranged by an agency or tour operator. This segment is attractive to people who desire a smooth experience, guaranteeing that all aspects of their journey follow halal guidelines. Package traveler benefits from the convenience and peace of mind that comes with pre-arranged services, often including certified halal food, prayer facilities, and culturally appropriate activities. In 2024, Qatar Airways Holidays introduced new Stopover packages designed for GCC travelers, which blend airfare and hotel stays to create seamless itineraries for visits of up to four nights in Qatar. These travel packages are designed to make traveling more convenient by combining bookings, providing various hotel options, and including extra features like city tours and desert experiences.

Breakup by Purpose:

• Leisure
• Business
• Ramadan
• Others
   

The report has provided a detailed breakup and analysis of the market based on the purpose. This includes leisure, business, Ramadan, and others.

Leisure is driven by the Muslim tourists looking for relaxation and fun activities while making sure their religious beliefs are respected. This consists of family getaways, seaside hotels, cultural excursions, and adventurous journeys. Destinations within the GCC, such as the UAE and Oman, are popular for their luxurious and halal-friendly resorts, offering amenities like halal food, private family areas, and prayer facilities. The growing popularity of halal-certified leisure activities is leading to the creation of personalized travel experiences that meet the requirements of Muslim travelers, guaranteeing the preservation of their religious and cultural beliefs during their trip.

Business caters to professionals who require halal-compliant services while traveling for work. It comprises of corporate meetings, conferences, and business events that require halal food choices and prayer amenities. Dubai and Riyadh are important business destinations in the region because they are major business hubs. The increasing focus on halal hospitality in the business travel industry guarantees that Muslim business travelers can adhere to their religious practices while meeting their work responsibilities.

Ramadan is a unique segment where Muslim travelers seek destinations that offer a spiritually enriching experience during the holy month of Ramadan. This involves traveling to Saudi Arabia for Umrah, a time when there is a large number of visitors. Destinations in the GCC offer unique Ramadan deals with suhoor and iftar meals, nightly Taraweeh prayers, and religious activities. The emphasis is on establishing a setting that is favorable for worship and contemplation, with hotels and resorts providing specialized services to cater to the fasting and prayer routines of visitors. The segment is growing as more Muslims look to spend Ramadan in spiritually significant locations.

Breakup by Budget:

• Low
• Standard
• Luxury
   

A detailed breakup and analysis of the market based on the budget have also been provided in the report. This includes low, standard, and luxury.

Low serves budget-conscious travelers looking for cost-effective, halal-compliant travel choices. This consists of affordable lodging, budget-friendly travel, and inexpensive dining choices that follow halal guidelines. This group of people tends to favor accommodations like hostels, budget hotels, and guesthouses that offer essential facilities and are halal-certified. Furthermore, budget airlines and group travel plans play a role in decreasing travel costs. This part is essential for attracting young tourists, students, and families seeking budget-friendly options to visit halal-friendly locations without compromising their religious principles.

Standard segment targets travelers who seek a balance between cost and comfort, preferring mid-range accommodations and services that offer good value for money. This segment includes three- and four-star hotels that provide halal-certified food, prayer facilities, and family-friendly environments. Standard budget travelers often look for package deals that include flights, accommodations, and activities at a reasonable price, ensuring a comfortable and halal-compliant travel experience. This segment is popular among middle-income families, business travelers, and couples who prioritize both affordability and quality in their travel arrangements.

Luxury caters to high-income travelers who seek premium, high-end travel experiences with a strong emphasis on halal compliance. This includes five-star hotels, luxury resorts, and exclusive services, such as private villas, gourmet halal dining, and personalized concierge services. Luxury travelers often look for bespoke travel experiences that offer privacy, indulgence, and exceptional service, ensuring their religious and cultural needs are fully met.

Breakup by Country:

• Saudi Arabia
• UAE
• Qatar
• Bahrain
• Kuwait
• Oman
   

The report has also provided a comprehensive analysis of all the major markets in the region, which include Saudi Arabia, the UAE, Qatar, Bahrain, Kuwait, and Oman.

Saudi Arabia is a pivotal market, primarily driven by its status as the birthplace of Islam and home to the two holiest cities, Makkah and Madinah. The country attracts millions of Muslim tourists annually for religious pilgrimages, such as Hajj and Umrah, making it a leading destination for halal tourism. Additionally, the rising investment in expanding tourism infrastructure, including the development of new luxury hotels, halal-friendly resorts, and enhanced transportation networks to cater to the growing number of visitors, is positively influencing the market.

UAE, particularly Dubai and Abu Dhabi, is a major player in the market, known for its luxurious hospitality, world-class infrastructure, and diverse cultural offerings. The country provides a wide range of halal-friendly accommodations, dining options, and recreational activities, making it a favored destination for Muslim travelers. In September 2023, the Department of Islamic Affairs and Charitable Activities (IACAD) in Dubai initiated a Religious Tourism Project aimed at improving Islamic tourism in the area. The project included creative features, such as the first floating mosque in the world, a Quranic Park, and programs like Dubai Iftar and Hala Ramadan to accommodate all visitors regardless of their religious background. These initiatives were intended to strengthen Dubai's position as a worldwide center for religious tourism, drawing more tourists and enriching cultural immersion.

Qatar is emerging as a notable destination, supported by a blend of modern attractions and cultural heritage, with a strong emphasis on halal-certified services and facilities. Doha, the capital, features luxury hotels, halal dining, and numerous cultural landmarks, attracting both leisure and business travelers. As a result, the contribution of Qatar to the GCC halal tourism market share is steadily increasing.

Bahrain is steadily gaining recognition owing to its rich history, cultural sites, and family-friendly attractions. The country offers a variety of halal-certified hotels, restaurants, and recreational facilities, appealing to Muslim travelers seeking a culturally enriching experience.

Kuwait is characterized by its emphasis on family-oriented travel and cultural tourism. The country offers a range of halal-friendly accommodations, dining options, and recreational activities catering to Muslim families and leisure travelers. The rich cultural heritage of Kuwait, including museums, traditional markets (souks), and historical landmarks, provides a unique travel experience.

Oman is known for its stunning natural landscapes, historic sites, and traditional Omani hospitality. The country offers a variety of halal-friendly hotels, resorts, and dining establishments catering to the needs of Muslim travelers. The diverse attractions of Oman, including its pristine beaches, mountains, and cultural heritage sites like the Sultan Qaboos Grand Mosque, make it an attractive destination for both leisure and adventure tourism.

Competitive Landscape:

• The market research report has also provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have been provided.
• Major participants in the market are improving their offerings and facilities to meet the increasing desire for halal vacations. Their concentration is on creating accommodations and dining options that are certified as halal, making sure they adhere to Islamic practices. A top priority is investing in infrastructure enhancements like prayer spaces and halal services. Furthermore, there is a focus on promoting cooperation between the public and private sectors to encourage creativity in travel packages and utilize digital platforms for customized, smooth halal travel adventures. In October 2023, Vietnam and Saudi Arabia signed a tourism cooperation action plan in Riyadh, prioritizing the launch of direct flights and reciprocal visa waivers. The goal of the program was to enhance tourism and create halal tourism offerings.
   

GCC Halal Tourism Market News:

• February 2024: The Bahrain Halal Expo ended, highlighting Brazil's eagerness to expand in the halal food and tourism sectors. Rafael Solimeo of the Arab-Brazilian Chamber of Commerce talked about the Brazil’s position as a major exporter of halal food to Arab nations, including Bahrain.
   

GCC Halal Tourism Market Report Scope:

Key Questions Answered in This Report:

• How has the GCC halal tourism market performed so far, and how will it perform in the coming years?
• What has been the impact of COVID-19 on the market?
• What is the breakup of the market on the basis of tour type?
• What is the breakup of the market on the basis of tourist type?
• What is the breakup of the market on the basis of purpose?
• What is the breakup of the market on the basis of budget?
• What are the various stages in the value chain of the market?
• What are the key driving factors and challenges in the market?
• What is the structure of the market, and who are the key players?
• What is the degree of competition in the GCC halal tourism market?
   

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the market.
• The study maps the leading, as well as the fastest-growing, markets. It further enables stakeholders to identify the key country-level markets within the region.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the market and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the GCC halal tourism industry.