Innovation drives regional sustainable tourism growth

Sajjad Ahmad, Deputy Business Editor

The global travel landscape is increasingly complex, influenced by climate change, environmental concerns, and changing traveller expectations. In the Middle East, destinations are proactively adapting their tourism strategies to tackle these challenges by focusing on resilience, innovation, and long-term value. The region is addressing issues such as extreme weather, shifting consumer behaviours, and geopolitical pressures with agility and ambition.

According to UN Tourism, international tourist arrivals reached 1.4 billion in 2024, marking a 99% recovery to pre-pandemic levels and an 11% increase compared to 2023. The Middle East led this rebound, recording arrivals that were 32% higher than in 2019, making it the fastest-recovering region worldwide.

At Arabian Travel Market (ATM) 2025, panellists at the session on “Redefining Tourism Products in Uncertain Times”, held in partnership with the Global Travel & Tourism Resilience Council, discussed how the Middle East is innovating to ensure traveller safety, preserve cultural and environmental assets, and enhance its appeal as a trusted, forward-thinking destination.

Ghada Shalaby, Executive Director, Egyptian Hotel Association, said: “Over the past decade, Egypt has faced several challenges, and we wanted to tailor make our approach to the tour operators and to the end consumer as well... especially during the COVID-19 pandemic when we communicated our health and safety procedures. By the end of 2023, we had reached our big figures for tourist arrivals, which continued into 2024.”

During the high-level session on the ATM 2025 Global Stage, cruise industry experts emphasised the sector’s advancements in sustainability. They noted that modern ships now operate under some of the strictest environmental regulations in tourism, especially in sensitive areas like the Red Sea. The discussion also addressed how perceptions, more generally, influenced by media coverage and travel advisories, can misrepresent conditions on the ground and impact travel decisions.

Ibrahim Osta, Global Tourism Lead, Chemonics International, commented: “So we have travel media, but you also have the general media. What the media reports has an implication on the interest in that market and the willingness for [tourists] to come [and visit]; this makes the job of the tourism authorities much more difficult.”

During the session, delegates heard how perceptions of instability, which are often amplified by social media and outdated advisories, can impact demand for insurance. They emphasised the importance of collaborative storytelling, investing in green infrastructure, and engaging new source markets by offering diverse experiences and cross-border itineraries.

Danielle Curtis, Exhibition Director ME, Arabian Travel Market, said: “ATM serves as an essential platform for cross-sector dialogue, particularly on issues that affect the future of travel in complex environments. By bringing together representatives from insurance, hospitality, development, and the cruise industry, we are contributing to creating a more connected and resilient tourism ecosystem in the Middle East and beyond.”

SLTPB expands partnership: the Sri Lanka Tourism Promotion Bureau (SLTPB) hosted a press conference on the sidelines of Arabian Travel Market (ATM) 2025 in Dubai, reaffirming its commitment to expanding tourism partnerships and boosting arrivals from the Gulf Cooperation Council (GCC), the broader Middle East, and international markets. The conference highlighted key developments across Sri Lanka’s tourism sector, including infrastructure upgrades, market trends, and evolving traveler experiences.

Addressing a packed media room, Sampath Nishshanka, Managing Director of SLTPB, outlined the country’s strategic focus on community-based experiences, wellness and nature travel, and premium hospitality.

“Sri Lanka is not just a destination - it is an experience shaped by warmth, culture, and meaningful connections that today’s discerning travelers seek,” he said. “We take pride in our heritage and the genuine hospitality that defines us. As we present a renewed vision for tourism, we invite the world - here at Arabian Travel Market - to rediscover Sri Lanka with fresh eyes and open hearts.”

The press conference emphasized SLTPB’s collaboration with GCC-based travel agencies and airlines to enhance connectivity and curate personalized experiences for travelers in GCC and the wider region. It also spotlighted efforts to strengthen media and trade engagement through authentic storytelling and by reinforcing confidence in Sri Lanka as the ideal travel destination for GCC and Middle East traveller.

The Sri Lanka Pavilion at ATM 2025 features a mix of co-exhibitors - including boutique hotels, wellness retreats, and destination management companies (DMCs) - keen to forge partnerships across the region and beyond. SLTPB also unveiled initiatives targeting families, spiritual travelers, and adventure seekers, aligning with summer travel trends. Visa-free entry for GCC nationals, direct air links, and attractive luxury packages further reinforce Sri Lanka’s appeal as a premier holiday destination.

Emirates and AEME deal: Emirates and American Express Middle East (AEME) have signed a Memorandum of Understanding (MoU) at Arabian Travel Market (ATM) that intends to expand their collaboration to explore new offerings for small and medium-sized enterprises (SMEs) in select countries across the Middle East and North Africa.

Together, Emirates and American Express Middle East will explore ways to reach and engage with SMEs through differentiated offers and value driven initiatives.

Mazin Khoury, Chief Executive Officer at AEME, noted, “SMEs are the pulse of the economy across the region and at American Express Middle East we are deeply committed to their success. Through this MoU, we aim to expand our collaboration with Emirates to create meaningful value for small businesses.”

Adnan Kazim, Deputy President & Chief Commercial Officer at Emirates, added, “Emirates recognises the pivotal role SMEs play in driving innovation, creating jobs, and fostering economic growth, and we’re committed to providing them with flexible solutions and a unique value proposition for their travel needs. The MoU between Emirates and American Express Middle East brings together two strong brands committed to delivering support to SMEs, empowering them to scale up and thrive in today’s economy. We look forward to a successful collaboration.”

Shaza Hotels debuts in Bahrain: Shaza Hotels, a leading hotel management company, has announced its entry into the Kingdom of Bahrain with the signing of a management agreement for Mysk Al Fateh Bahrain with Nuzul Masaken Real Estate Development Co., a prominent Bahraini investment company. The agreement was formalised between Simon Coombs, President & CEO of Shaza Hotels, and Ghazi Abdulla Nass, Chairman, Nuzul Masaken Real Estate Development Co in Bahrain.

The partnership was unveiled during an exclusive ceremony held at the Shaza Hotels stand at the Arabian Travel Market by Simon Coombs and Faisal Ali Al Farsi, Board Member of Nuzul Holdings. The event was attended by senior leaders from both organisations, including Shaji Abu Salih, Vice President – Business Development and Growth, and Franck Descat, Vice President – Asset Management at Shaza Hotels; as well as Islam Abdelhakim Abo Alam, Board Member of Nuzul Masaken Real Estate Development Co., and Ms Mona Ahmed Al Musallam, Board Member at Nuzul Masaken Real Estate Development Co.

Speaking on the occasion, Simon Coombs, President & CEO of Shaza Hotels, stated: “We are delighted to mark our entry into the Kingdom of Bahrain with such a special property. Mysk Al Fateh Bahrain is a perfect fit for our growing Mysk portfolio – combining contemporary luxury with a sense of place and purpose. Our partnership with Nuzul Holdings reflects a shared vision to bring meaningful hospitality experiences to the region, and we look forward to delivering exceptional value to our guests and stakeholders alike.”

Ghazi Abdulla Nass, Chairman, Nuzul Masaken Real Estate Development Co., commented: “This partnership with Shaza Hotels – a brand known for its cultural depth and operational excellence – reflects our long-term commitment to developing high-quality hospitality assets that meet Bahrain’s evolving tourism demand. Mysk Al Fateh Bahrain is designed to cater to the increasing number of long-stay guests, executives, and families seeking a modern, serviced living environment in one of the most connected and cosmopolitan areas of Manama.”

Mysk Al Fateh Bahrain, the 15-storey twin tower development, features 118 contemporary suites, including elegant one, two and three-bedroom residences and four exclusive penthouses – each thoughtfully designed for business and leisure guests. Mysk Al Fateh Bahrain will officially open its doors to guests on 1st May 2025.

Digital ads: Malika Kennedy, Chief Business Development Officer from Yango Ads said, “At Arabian Travel Market, we’re contributing to the broader conversation around AI and data’s role in shaping the tourism industry’s future. Brands today face a critical challenge: cutting through digital noise to reach consumers with messages that matter. In the travel sector, where, according to our 2025 Tourism Industry Guide, nearly half of emerging market travellers are influenced by targeted digital ads, and 60% plan trips two to three months in advance, timing and relevance are everything. This shift demands smarter, context-driven campaigns that align with user intent, whether they’re actively searching or simply considering a getaway. Travel businesses can tap into advanced advertising tools designed to reach the right audience at the right time.”

Qashio’s solutions: Armin Moradi, Co-Founder and CEO of Qashio said, “The Middle East’s travel sector is rapidly expanding, with international visitor spending expected to reach $194 billion in 2025. As businesses in this fast-moving space scale, they face growing pressure to manage costs, increase transparency, and improve operational efficiency. At Arabian Travel Market 2025, Qashio is highlighting how our spend management solutions help companies overcome these challenges by digitising payments and offering granular control over spend. We enable travel businesses to reduce fraud risk, cut unnecessary fees, and automate time-consuming reconciliation processes. As the region’s travel ecosystem grows more complex, tools like Qashio play a key role in building a scalable, resilient market without slowing down.”

Ascott eyes 20%: The Ascott Limited (Ascott), a leading global hospitality operator, announced plans to achieve a 20% annual growth rate over the next five years in the Middle East, Africa, and Turkey (MEAT) region — setting a bold pace for expansion as the region’s hospitality and tourism sectors undergo rapid transformation.

Unveiled at the Arabian Travel Market 2025, Ascott’s growth ambitions align with the region’s mega-development programmes such as Saudi Vision 2030 and the UAE’s D33 Economic Agenda. The company aims to steadily grow its regional presence toward 15,000 units in operation or under development by 2030, leveraging its flexible living portfolio and experience-led hospitality models.

“We are targeting sustainable, robust growth of 20% year-on-year, guided by a flexible living philosophy and a focus on future-ready cities,” said Vincent Miccolis, Managing Director, Middle East, Africa, and Türkiye, The Ascott Limited. “As tourism, urban living, and work patterns evolve, Ascott is uniquely positioned to meet the region’s demand for hybrid hospitality solutions that blend living, working, and community experiences.”

Ascott’s expansion plans are anchored by strategic growth in Saudi Arabia and the United Arab Emirates. In Saudi Arabia, the company intends scaling operations across Riyadh, Jeddah, Makkah, Madinah, and key secondary cities, supported by upcoming openings such as Ascott Villas Riyadh, an upper-upscale living concept set to launch in Q3 2025 and the recent signing of a The Crest Collection hotel located on King Fahd Road in Riyadh. In the UAE, Ascott is deepening its presence in Dubai and entering Abu Dhabi, targeting both tourism and business demand. New projects include The Crest Collection Ras Al Khaimah on Marjan Island, bringing bespoke, story-driven hospitality to one of the UAE’s fastest-growing leisure destinations.

Looking ahead, Ascott sees a significant opportunity to introduce its highly successful experience-led social living concept, lyf, to the Middle East for the first time. Currently thriving in global cities like Singapore, Bangkok, London, Tokyo, and soon Paris, lyf properties are purposefully designed to foster organic social interactions through shared spaces, community-driven programming, and a tech-enabled, flexible guest experience. From co-working lounges to communal kitchens and curated local collaborations, lyf creates environments that go beyond traditional accommodation — offering a new way of living, working, and connecting.

“The Middle East is undergoing one of the most dynamic urban transformations globally, with young business travelers, digital nomads, and long-stay residents increasingly looking for more than just a place to stay,” said Miccolis. “The lyf concept is a perfect fit for the region’s future cities — blending social living, flexible design, and operational agility in ways that appeal to next-generation travelers and forward-thinking investors alike. The brand has gained a lot of traction in the co-living space over the past three years. We are targeting to sign 150 lyf properties globally by 2030 and we see great potential for many of these to be in the MEAT region.”