Luxury Travel Boom: Market to Hit $391 Billion by 2028 – What’s Driving Growth?

The global luxury tourism sector is on a rapid growth trajectory. With market projections indicating it will reach $391 billion by 2028, a significant jump from $239 billion in 2023. This surge is fueled by an increasing number of high-net-worth individuals (HNWIs). And a growing trend of travellers allocating more of their income toward premium experiences. Companies like Farepayer Travels are playing a key role in offering exclusive international tour packages tailored for luxury travellers.

Luxury Tourism’s Growth & Regional Trends

Recent industry research highlights that luxury tourism is expected to expand at a faster rate than any other travel segment. A key driver of this growth is the Asia-Pacific (APAC) region. Which is making notable strides in the market. The region’s affluent travellers are actively seeking exclusive, high-end experiences. Positioning Asia as a major contributor to the luxury travel boom.

The Gulf Cooperation Council (GCC) region is also a significant player in the luxury travel landscape. According to data from the Statistical Centre for the Cooperation Council for the Arab Countries of the Gulf. International tourism revenues in the GCC hit $110.4 billion in 2023, with 38% of tourists originating from the APAC region. This increasing demand has led to a 27% rise in exhibitors from Asia at upcoming travel industry events.

Arabian Travel Market 2025 to Showcase Luxury Travel Trends

The Arabian Travel Market (ATM) 2025, set to take place at the Dubai World Trade Centre from April 28 to May 1, will place a strong emphasis on luxury tourism. The event will feature:

• Leading hospitality brands, including Mandarin Oriental, Four Seasons Hotels & Resorts, and One & Only.
• Luxury destinations such as the Maldives, Mauritius, and Peru.
• Industry insights on hyper-personalisation, sustainability, and retaining high-net-worth travellers.
• Networking opportunities for key players in leisure, luxury, and corporate travel sectors.

Danielle Curtis, Exhibition Director ME at ATM, noted, “The increase in inbound tourism from Asia and the growing wealth in this region create a major opportunity for Middle Eastern tourism, especially in the luxury sector.”

GCC’s Investment in Luxury Tourism Infrastructure

To meet the rising demand for premium travel experiences, GCC countries are investing heavily in their hospitality infrastructure. The region is set to add 400,000 hotel rooms by 2030, catering to luxury travellers seeking bespoke, cultural, and adventure-driven experiences.

Sustainability is also becoming a core focus, with luxury hotels in the GCC increasingly adopting eco-friendly practices. Travellers are now prioritising responsible tourism, influencing hotels and resorts to implement green initiatives in their operations.

MENA’s Position in the Global Luxury Travel Market

The Middle East and North Africa (MENA) region continues to establish itself as a key market for outbound luxury travel. Research from Mastercard’s Affluent Travel Report revealed that Saudi Arabia and the UAE are among the world’s top source markets for high-end travel experiences.

Additionally, GCC travellers are recognized for higher spending power. Reports indicate that Kuwaiti tourists in Paris spend five times more than their American counterparts, highlighting the region’s significance in the luxury tourism industry.

Companies like Farepayer Travels are capitalizing on this trend by offering customized international tour packages, catering to high-net-worth travellers who seek luxury, exclusivity, and immersive experiences in destinations worldwide.

Conclusion

With the global luxury travel sector projected to hit $391 billion by 2028, destinations and hospitality brands are adapting to meet the needs of high-spending travellers. The upcoming Arabian Travel Market 2025 will serve as a key platform for industry leaders to explore the latest trends, ensuring that luxury tourism remains a thriving and evolving sector in the years to come. Farepayer Travels and other leading agencies continue to provide premium international tour packages, meeting the demands of elite travellers seeking unparalleled experiences.