Published: May 30, 2024 | Updated: June 05, 2024
Read time: 5 minutes
Introduction
2024 is shaping up to be a strong year for the experience economy, according to The Mastercard Economics Institute’s fifth-annual travel report, Travel Trends 2024: Breaking Boundaries.
Nine out of the last 10 record-setting spending days in the global cruise and airline industry have occurred in 2024, and the Mastercard Economics Institute anticipates this momentum will continue. For the travel industry, tourism and the resilient consumer are the bright spots in the global macroeconomy with more people traveling than ever before.
Top global themes
Top themes in the Middle East & North Africa region
Here’s how the dynamics are playing out in the Middle East and North Africa:
- In 2024, travelers leaving the MENA region are increasingly strategic with where and when they travel.
- The savvy traveler is reallocating their budget as tourism spending shares shift closer to home. The share of outbound lodging sales remaining in MENA has increased by two percentage points in 2024 versus 2019 in the trailing 12 months ending March 2024.
- The region is benefiting from tourists spending roughly three extra days in the destination.
- Travelers are shopping far more for apparel intra-regionally with an approximate 10 percentage point increase in the share of outbound clothing spend remaining within the Middle East and Africa.
Trending destinations for the Middle East and North Africa region
Spending while traveling
Consumer spending on travel remains strong. Some behaviors stand out:
- Experiential oriented spend – like nightlife – continues to gain importance over retail shopping in the priorities of travelers globally.
- The share of total sales attributed to global tourism spending on experiences as of March 2024 is 12% higher than ever before.
- There is much stronger demand for luxury over casual in markets like Japan and United Arab Emirates.
- The picture is mixed for dining out globally. Tourists favor a laid-back experience in countries like Spain and Brazil, whereas the fine dining scene is burgeoning in India.
Leisure for longer
Tourists and leisure travelers are enjoying more time on vacation. Here are some of the impacts:
- Longer trips are translating to an extra boost for destinations.
- Longer stays generally translate to more spend per trip and can translate to an economic boost for local economies.
- There is a clear inverse relationship between price of destination and days. Cheaper destinations = longer stays.
- In addition, the warmer the destination, the more time consumers tend to spend there.
For more insight and market analysis on the global tourism sector, view the Mastercard Economics Institute’s full “Travel Trends 2024: Breaking Boundaries” report.
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