GCC is Turning Sports Tourism into a Billion-Dollar Industry to Fuel Economic Growth Beyond Oil

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The GCC’s interconnectedness in sports and tourism will contribute to the expansion of the non-oil sectors and promote long-term financial diversification beyond hydrocarbons.

Gulf Cooperation Council (GCC) is aware of sports tourism’s potential as a significant driver of economic growth.

The region has hosted important international sporting events to diversify its economy away from its oil dependence and draw tourists from outside.

Sports tourism involves traveling to watch or join in sporting events, and it has become rather popular in the GCC, especially in Saudi Arabia, Qatar, and the United Arab Emirates (UAE).

These countries are branding themselves as top locations by investing in sports infrastructure for major international sporting events. Events like the FIFA World Cup in Qatar, the UFC events in Abu Dhabi, and the Formula 1 Grand Prix in Bahrain and Saudi Arabia show the success of this initiative.

Sports tourism has a significant impact on the GCC economy. Hosting big athletic events draws many tourists from abroad who spend money on lodging, food, travel, and shopping.

For example, more than a million people visited Qatar for the FIFA World Cup 2022, increasing the revenue for local businesses.

Many tourists visit the United Arab Emirates, especially Dubai, to attend the Formula 1 Grand Prix. It improves the global image and achieves its objective of becoming a tourist hub.

The GCC’s interconnectedness in sports and tourism will contribute to the expansion of the non-oil sectors and promote long-term financial diversification beyond hydrocarbons.

GCC countries developed stadiums, transport systems, and hospitality venues to prepare for these sporting events. These investments will benefit locals and visitors.

For instance, Qatar‘s investment in the metro system before the World Cup benefitted the country long after the competition.

Sports tourism has also brought in foreign investment. Global businesses are taking advantage of the expanding sports landscape, where they take part through partnerships to expand their product offerings.

The UAE has been the significant hub for international cricket competitions and UFC Fight Night. These occasions bring in income and demonstrate its ability to hold major global events.

The first FIFA World Cup was held in Qatar, Middle East, establishing Qatar’s reputation in international sports. The World Cup brought in almost $6 billion (Dh22 billion) for the Qatari economy.

Similarly, Abu Dhabi’s UFC events have established the emirate as a key player in combat sports.

The UFC has committed to hosting more sporting events in the United Arab Emirates, which would increase the region’s economy through sponsorship, travel, and retail sales.

The revenue from sporting events in Saudi Arabia will reach a market volume of US$272.6 million (Dh1 billion) by 2028, as per international statistics tracker Statista.

GCC offers many potential for sports tourism, but the warm weather can discourage travelers, particularly in the summer. However, this problem can be avoided by planning events for the cooler months and by building indoor venues.

Even if significant events draw attention, the GCC should ensure that tourism offers holistic packages like recreational opportunities, historical places, and cultural activities, which will help keep guests interested even after the event has ended. Many countries have recognized this and made The National Museum of Qatar and the Louvre Abu Dhabi in the UAE essential parts of their tourism packages.

Sports events boost the economy and promote tourism by showcasing cultural and natural resources. Having sports events makes a place associated with sports while keeping it a top travel destination. Visitors who come for an athletic event frequently extend their stay to take advantage of the cultural and recreational offerings and vice versa.

In 2020, Abu Dhabi was awarded the top sports tourist destination in the world for eight consecutive years by the World Travel Awards for hosting the UFC’s Fight Island and the Abu Dhabi Grand Prix since 2009.

The Gulf Cooperation Council (GCC) countries are successfully diversifying their economies and attracting high-end foreign tourists and business professionals by promoting sports tourism and famous events like the World Cup.

The region’s tourist environment evolves as the GCC continues to invest in sports tourism. They are planning to have more sports complexes, academies, and training facilities to nurture local talent and encourage participation in sports.

The GCC will become the go-to location for upcoming international events, like the Asian Games and World Championships, as international athletic organizations want to broaden their reach.

GCC is planning to leverage major athletic events to attract tourism from abroad, support local economies, and create a strong sports culture. The future of sports tourism in the GCC has to significantly impact the economic environment in the years to come as long as the member states keep innovating and improving their tourism offers.