The GCC hospitality market is experiencing a significant shortage of skilled professionals, with the region projected to need over 90,000 workers by 2026. This critical issue was highlighted in the recently released GCC Hospitality Industry Report by Alpen Capital.
According to the report, the UAE and Saudi Arabia will be the primary markets driving this demand, requiring 82,000 skilled hospitality professionals by 2026. Lokesh Singhania, Director at Alpen Capital, emphasized the urgent need for proactive measures, including investment in training, education, and development programs, to address the shortfall.
Speaking at the launch of the report, Rohit Walia, Executive Chairman and CEO of Alpen Capital, underscored the sector’s struggle to recruit and retain adequately trained professionals for various roles, ranging from management to service staff. He noted that the increasing competition within the industry is exerting pressure on existing infrastructure and resources.
The Alpen Capital report also pointed out that the sector’s growth trajectory is being hindered by the shortage of skilled workers. Despite this challenge, the GCC countries are set to host major international events, such as the Formula One Saudi Arabia Grand Prix 2024, the Olympic Asian Winter Games 2029, Riyadh Expo 2030, and the FIFA World Cup 2034. These events, alongside significant investments in infrastructure, luxury hotels, resorts, and cultural events, are expected to drive the region’s ambitious vision for a thriving hospitality sector.
The report projects that the GCC hospitality market will grow at a rate of 7.5% between 2023 and 2028, reaching an estimated $48.1 billion by 2028. This growth is fueled by the concerted efforts of all GCC countries.
UAE Hospitality Market Growth
Specifically, the UAE’s hospitality market is expected to rise at 6.9% per annum, reaching $10 billion by 2028, up from $7.1 billion in 2023. The UAE’s appeal as a leisure and business hub, bolstered by a well-developed tourism infrastructure, plays a significant role in this growth. The country aims to attract around 40 million hotel guests annually and increase the tourism sector’s contribution to the GDP to $122.6 billion (Dh450 billion) by 2031.
The report also highlights the positive impact of multiple-entry visas for Indians and the MICE (Meetings, Incentives, Conferences, and Exhibitions) industry on the UAE’s travel, tourism, and hospitality sectors. International tourist arrivals in the UAE are forecasted to increase by 5% over the next four years, reaching 30.4 million by 2028.
Additionally, the UAE is expected to see a rise in its occupancy rate by 400 basis points to 78.7% between 2023 and 2028. Consequently, the average daily rate (ADR) is projected to grow by 2.2% to $161.1 by 2028, up from $144.5 in 2023.
Addressing the Skills Gap
To tackle the shortage of skilled workers, industry leaders stress the importance of investing in training and education. Creating programs that equip individuals with the necessary skills for various hospitality roles is crucial for sustaining growth and maintaining the high standards expected in the industry.
By addressing these workforce challenges and leveraging upcoming international events, the GCC hospitality sector is poised for significant growth, driving economic diversification and positioning the region as a global hub for tourism and hospitality.
