_What Impact is Tourism Having on the Food and Beverage Industry in the GCC?

The GCC region has become a hotspot for global tourism, attracting millions of visitors and sparking significant changes in the Food and Beverage industry. Visitor numbers surged by 136.6% last year, reaching 39.8 million, while the F&B sector's value hit US$ 185.9 billion in 2023. This influx of tourists has driven a demand for diverse and high-quality dining experiences, directly impacting the growth of the F&B sector. This growth highlights how tourism is reshaping the food and beverage sector in the region.

September 19, 2024

Each GCC country has ambitious tourism goals, Qatar plans to welcome over 6 million international visitors annually by 2030, while the UAE aims for 40 million arrivals by 2031, and Saudi Arabia targets 150 million tourists by 2030. These goals are backed by considerable investments in infrastructure, and the increasing number of visitors is fuelling the demand for new and varied dining options, encouraging both local and international food businesses to expand their offerings, as the GCC’s luxury resorts, cultural landmarks, and evolving culinary scene are making it a premier destination for travellers.

Several key factors are driving the growth of the F&B sector, and the Gulf region's strategic position as a crossroads for global trade and tourism is crucial. Government initiatives aimed at promoting tourism and supporting local businesses have created a favourable environment for this industry. The region’s affluent population, known for its dining-out culture, further increases industry expansion. The growing tourism industry is enhancing the attractiveness of the region’s food scene by bringing in diverse international culinary influences and increasing consumer interest in unique dining experiences.

Technological advancements have improved access to a wide range of international cuisines, while trends such as sustainability, changing consumer preferences, and digital innovation are pushing the sector forward. The projected GDP growth rates for GCC countries in 2023, between 2.2% and 1.5%, are expected to increase consumer income and spending capacity, enhancing demand for diverse F&B products. Tourism not only drives higher spending but also accelerates the development of new dining concepts and innovations that cater to an increasingly sophisticated audience.

The rapid increase in population is expanding the customer base, which in turn is driving up food consumption and spending. Rising incomes, driven by strong economic growth, are fuelling demand for dining out and high-quality F&B products. The expanding tourism sector is a significant factor in this growth, creating opportunities for both local and international businesses to thrive. The presence of global companies in the region is injecting innovation and healthy competition into the market. Additionally, the tourism sector offers various growth opportunities, especially in hospitality and retail.