CTN Investigates: is the Middle East poised for cruise domination?
As Saudi Arabia and Qatar undergo billion-pound transformations, the Middle East’s vision for a tourism utopia is steadily becoming a reality. Jack Carter looks at the latest developments across the region’s port destinations and asks whether the investment is enough for it to challenge ocean’s established elite
On a typically hot day in mid-May, a crowd of some 33,000 travel professionals made their way up Sheikh Zayed Road and into the air-conditioned halls of the Dubai World Trade Centre for the 2024 edition of Arabian Travel Market. It was a record attendance for the trade show, which is now in its 31st year, with representatives from more than 150 countries gathering for the four-day event.
During the show, the president of the World Travel and Tourism Council (WTTC), Julia Simpson, was asked by CNN about whether this was a tipping point for the Gulf’s tourism sector.
“The GCC (Gulf Cooperation Council) and Middle East [are] growing faster than any other region,” she told the global news platform. “Revenue numbers [in the United Arab Emirates] have gone up by 50 per cent and the contribution to GDP – in terms of the amount of money that travel and tourism is making and contributing to the economy – has gone up by 25 per cent.”
This should come as no real surprise. After all, Dubai – with its glut of five-star hotels and celebrity-endorsed restaurants – has been a well-established holiday destination for more than a decade. The difference is that there’s now a growing cohort of GCC nations that are ready to compete in the tourism marketplace.
Nations like Saudi Arabia, which earlier this year welcomed its one-millionth visitor. The Kingdom’s ochre-hued deserts, tranquil island lagoons and Unesco‑protected landmarks have been attracting travellers far and wide ever since it launched its first tourist eVisa back in 2019. Getting to explore one of the few remaining destinations untouched by tourism is undoubtedly part of the attraction.
However, with 13 immensely ambitious tourism giga-projects currently underway, it’s unlikely to remain untouched for long.
One of those projects is Neom: a $500 billion (£380 billion) renewable energy-powered destination on the northwest coast. Combining island destinations to rival the South Pacific, luxury mountain lodges and wildlife reserves, Neom will be hoping to attract the growing brigade of affluent travellers when work is completed in 2029.
Then there’s The Line, a 106-mile-long mirror-clad “city” carving through the desert from the foot of the Trojena mountains all the way to the Red Sea. Once complete, it’ll accommodate nine million residents and tourists (although recent reports suggest construction plans are being scaled back).
Qatar is another GCC country with serious ambitions. Audiences around the globe became acquainted with Doha’s beatific shoreline and futuristic skyscrapers when it became the first Middle East nation to host the FIFA World Cup in 2022.
Staging the world’s most-watched sporting event came at a heavy cost, however, with the 2023 Skift Advisory Thought Leadership Report revealing that the amount spent on stadiums, infrastructure and all else that came with it exceeded every other World Cup combined. With plans to triple its visitor numbers to six million a year by 2030, the Qatari government will argue it was money well spent.
Making waves
Now that infrastructure has been laid and ambitious tourism targets are locked in, it’s the cruise industry’s turn to get in on the action.
“Cruise Saudi’s goal is to welcome 1.3 million cruise passengers annually by 2035, in line with Saudi’s objective to attract 150 million local and international visitors by 2030,” says the organisation’s chief strategy officer, Ghassan Khan. “We’re working closely with our cruise line partners and global organisations, such as CLIA, MedCruise and WTTC, to develop Saudi as a leading cruise destination.”
“Saudi has never been accessible to international tourists until 2019, so we recognise the unique opportunity we have to showcase a previously unexplored part of the globe to a watching international audience”
Cruise Saudi officially launched in 2021 to facilitate the Kingdom’s entry into the market. The country currently has three ports – Jeddah Islamic Port and Yanbu Commercial Port, both on the Red Sea, and King Abdulaziz Port in Dammam on the Arabian Gulf – with a further seven expected to be operational by 2035.
Among the cruise lines homeporting in Saudi will be Aroya Cruises, the first-ever Arabian operator, with onboard features tailored to the preferences of Middle Eastern passengers.
“People are excited to explore new places,” Khan explains. “Saudi has never been accessible to international tourists until 2019, so we recognise the unique opportunity we have to showcase a previously unexplored part of the globe to a watching international audience.”
Ripping up the rulebook
Convincing travellers to choose the Middle East over tried-and-tested destinations like the Mediterranean is the next challenge for the GCC. Coming late to the market has been fortuitous, though, with the region able to learn from existing destinations to build modern, fit-for-purpose ports that serve the local area.
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This was the case when Qatar unveiled its brand-new terminal in November 2022. Estimated to have cost around $500 million (£380 million), the Doha Grand Cruise Terminal can accommodate two megaships at a time and up to 12,000 people a day. It hosts year‑round events and art exhibitions and boasts its own rooftop terrace. There’s even a wraparound aquarium guiding passengers from the ship to the customs desk.
The port also sits at the end of Doha’s seven-kilometre Corniche, meaning locals aren’t bothered by crowds of cruise travellers while tourists can reach attractions like the National Museum of Qatar and the Souq Waqif either on foot or by using the new metro system.
“The global spotlight on Arabian culture, highlighted by events such as the FIFA World Cup Qatar 2022, has increased interest in the region, making destinations such as Dubai, Abu Dhabi and Oman more appealing for cruise travellers”
“I visited the port with the Celestyal team earlier in the year and I was blown away by the terminal,” says Janet Parton, VP of business development for the challenger line. “It’s a space where you want to spend time, and it reflects the destination’s investment and commitment to making themselves a true player in the cruising space.
“You are welcomed by the region, as well as being welcomed by our Celestyal team when you step on board. Warm hospitality and a sense of comfort is synonymous with our brand, and we actively seek out ways to extend this across our customer journey.”
The terminal’s façade, which consists of 1,154 arches, was designed by architects Hassell Studios, who won the bid in autumn 2018. “The client brief asked for lots of arches as this is a traditional architectural device across the region,” says Ashley Munday, principal and head of design at the company.
“We wanted to create a filigree of arches that could be backlit to give the terminal a real presence at night. Often, port buildings are relegated to background infrastructure, but we feel that terminals especially are both civic buildings as well as ‘front doors’ to the cities where they are located.”
Qatar’s investment is paying off. During the 2023-24 cruise season, the country welcomed a record-breaking 73 cruise ships and more than 378,000 passengers, up from 251,191 passengers the previous season.
“The global spotlight on Arabian culture, highlighted by events such as the FIFA World Cup Qatar 2022, has increased interest in the region, making destinations such as Dubai, Abu Dhabi and Oman more appealing for cruise travellers,” says Maryam Saoud, head of tourism product support at Qatar Tourism.
The destination’s cruise offering has been buoyed by the recent partnership with Celestyal, with the 1,260-guest Celestyal Journey set to homeport in Doha this winter. Saoud says Visit Qatar plans to forge more partnerships in the near future and add to the growing roster of international cruise lines currently sailing in the Gulf.
“These strategic alliances are essential for driving growth in Qatar’s cruise and tourism industry, supporting the country’s strategic tourism goals of welcoming six million annual visitors by 2030, and establishing Qatar as one of the fastest-growing destinations in the region.”
Safety concerns
Billions of pounds have already been spent bringing the Middle East’s utopic tourism vision to life. However, the region still has some serious and concerning obstacles to overcome if it’s to make good on its lofty ambitions.
Of course, there are the issues surrounding human rights, which continue to divide travellers. These are compounded by the intensifying conflicts in the Red Sea and between Israel and Palestine.
Virgin Voyages, MSC Cruises and Holland America Line have all been forced to cancel sailings that were transiting through the nearby Red Sea area. Even Celestyal, which has aspirations of becoming the region’s ‘go-to’ cruise operator, has been forced to pull its inaugural Arabian Gulf sailing.
“We need peace out there to help facilitate the growth and investment the destinations are pouring into tourism”
Khan admits Saudi Arabia has been impacted by the conflict but says demand and appetite from international travellers continue to grow.
According to Phil Nuttall, CEO of The Travel Village Group, the conflict needs to be resolved before the Middle East can become a genuine player in the cruise market. “It’s a concern,” he says. “You’re not going to get buy-in from the general public while a war is happening nearby. We need peace out there to help facilitate the growth and investment the destinations are pouring into tourism.”
The conflict is also causing a headache for cruise lines who are eager to increase their tonnage in the region, with the conflict blocking essential sailing routes like the Suez Canal. “A lot of winter business comes from ships sailing around that part of the world,” Nuttall explains. “Until we get stability, it’s going to be nigh-on impossible for cruise ships to get around.”
However, none of these factors will stop agents like Nuttall from pitching the GCC destinations to clients this upcoming winter sun period. “I’m very confident we’ll get passengers onto ships this winter,” he adds. “The food and hospitality are out of this world. In fact, you could compare the service levels in Qatar with what you get on a cruise ship, so it’s a perfect fit.
“You look at the price for hotels in Tenerife and the issues locals are having with overtourism and you realise you could do a lot worse than fly six hours to Dubai and spend a week on a cruise ship.”
