Wyndham exec: Midscale hotels, not luxury, key to Gulf tourism goals
A senior Wyndham executive says midscale and lifestyle properties—not luxury resorts—will drive tourism expansion across the UAE and Saudi Arabia as both countries target domestic and regional visitors.
The future of Gulf hospitality will rest on midscale and lifestyle accommodations rather than luxury properties, according to a market managing director at Wyndham. The executive contends that the UAE and Saudi Arabia's tourism ambitions for the remainder of the decade depend on developers prioritizing affordable, experience-driven hotels over high-end resorts.
The assessment comes as both nations advance Tourism 2030 strategies aimed at dramatically expanding visitor arrivals. Saudi Arabia has set a target of welcoming 150 million tourists annually by decade's end, while the UAE continues positioning itself as a regional hub for business and leisure travel.
According to the Wyndham representative, demand patterns are shifting away from international luxury seekers toward domestic and regional travelers who favor accessibility and value. This demographic prefers properties that deliver authentic local experiences at moderate price points rather than ultra-premium amenities.
The midscale segment has historically been underserved across the Gulf, where development capital has concentrated on five-star resorts catering to long-haul international guests. Industry observers note that filling the gap in three- and four-star inventory could unlock growth among middle-income visitors from neighboring countries and local residents taking domestic trips.
Both Saudi Arabia and the UAE have implemented visa liberalization measures and infrastructure investments to broaden their tourism base beyond traditional luxury markets. The emphasis on accessible hospitality aligns with regional economic diversification efforts that prioritize volume and repeat visitation over high-spending niche segments.