The GCC countries staycation market is witnessing unprecedented growth, driven by evolving travel preferences, increased domestic tourism initiatives, and robust economic recovery post-pandemic. Recent market analysis estimates the GCC staycation industry size at USD 25.2 billion in 2025, with an optimistic forecast projecting its value to surge to USD 63 billion by 2035, reflecting a remarkable compound annual growth rate (CAGR) of 9.6% between 2025 and 2035.
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Strong Market Drivers Fuel Growth of Staycation Tourism in GCC Countries
The GCC region, comprising Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates, is becoming a prime destination for staycation seekers who prefer exploring local luxury resorts, cultural landmarks, and leisure activities without traveling abroad. The rise of value-based travel experiences, government incentives to promote domestic tourism, and enhanced hospitality infrastructure contribute significantly to the expanding GCC staycation market size.
Increasing consumer preference for short, affordable, yet immersive holiday experiences within GCC borders is a key driver behind the rapid market expansion. This trend is further boosted by innovative marketing strategies by hospitality providers and the rise of experiential tourism, encouraging residents and visitors alike to indulge in unique staycation packages and themed resort stays.
Market Outlook: Strategic Investments and Emerging Opportunities in GCC Staycation Sector
With the projected market value expected to more than double over the next decade, reaching USD 63 billion by 2035, industry stakeholders are positioning themselves to capitalize on the burgeoning GCC staycation tourism sector. Hotels, resorts, travel agencies, and leisure service providers are actively innovating to meet the growing demand for customized staycation packages that emphasize wellness, adventure, and cultural experiences.
The 9.6% CAGR reflects the sector’s resilience and adaptability amidst changing global travel dynamics, including restrictions and a renewed focus on local tourism markets. Increasing investments in infrastructure development, coupled with regional governments’ efforts to diversify their economies beyond oil reliance, are propelling the GCC staycation industry toward sustained growth and profitability.
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Consumer Trends Highlight Increased Demand for Domestic Tourism in GCC Countries
The growing appeal of staycations within the GCC can also be attributed to the shifting lifestyles of consumers who value convenience, safety, and personalized travel experiences. Families, millennials, and luxury travelers are increasingly seeking accessible yet high-quality holiday options close to home. This trend has led to the proliferation of boutique hotels, themed resorts, and outdoor recreational facilities tailored to meet diverse preferences.
Moreover, digital transformation in the hospitality sector, including seamless online booking platforms and virtual tours, enhances the overall staycation experience, thereby attracting a broader customer base across the GCC countries.
Challenges Facing the GCC Staycation Market
Despite its promising outlook, the staycation market across GCC countries is not without its challenges. These hurdles must be addressed to sustain long-term growth and ensure consistent value creation for stakeholders:
- Seasonality and Extreme Climate Conditions: One of the most significant challenges is the region’s harsh summer climate, which limits outdoor leisure activities and reduces staycation appeal during peak heat months. This seasonal dependency affects occupancy rates and reduces year-round profitability for resorts and tourism operators.
- Limited Diversity of Attractions in Some Regions: While major cities like Dubai, Abu Dhabi, and Riyadh boast world-class tourism infrastructure, other parts of the GCC still lack diversified entertainment, cultural, and wellness offerings. This creates an uneven distribution of tourism flow and puts pressure on already popular destinations.
- Price Sensitivity Among Local Travelers: As the staycation model grows, price competition intensifies. Many local residents are highly price-sensitive, especially in middle-income segments. Without proper value-added offerings, businesses may struggle to maintain profitability while meeting consumer expectations for affordability.
- Overreliance on Luxury Hospitality Segments: The GCC hospitality market has traditionally leaned toward high-end luxury tourism. However, the evolving staycation trend calls for a broader range of options, including mid-range and boutique experiences. The slow diversification of available accommodations may limit appeal across different income levels.
- Regulatory and Policy Gaps Across GCC Nations: Inconsistencies in tourism-related regulations, licensing, and tourism development policies between GCC countries can hinder cross-border collaboration and standardized promotion of the staycation market. A more harmonized regional strategy is needed to foster seamless domestic travel experiences.
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GCC Countries Staycation Market Segmentation
By Booking Agency:
The industry is segmented into Online Travel Agency, Traditional Travel Agency, Travel Management Companies, and Corporate Buyers.
By Age:
The market is analyzed by age group, including Under 15, 16 – 25, 26 – 35, 36 – 45, 46 – 55, and Over 55.
By Visit Purpose:
Segmentation includes Business Travel, Leisure Travel, Education, Employment, Pilgrimage, and Others.
By Demography:
The industry includes Individual, Couples, Families, and Group.
By Booking Channel:
The market is segmented into Phone Booking, Online Booking, and In-Person Booking.
By Tour Type:
Segmentation includes Independent Traveler, Package Traveler, and Tour Group.
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