- Panellists offered various insights into the Middle East’s travel investment ecosystem at ATM 2024, which concludes today, Thursday 9 May
- The Middle East’s contribution to global travel revenues is equivalent to its share of international startup funding at roughly 5%, according to McKinsey & Company
- While funding for regional travel entrepreneurs and startups has risen since Covid, experts say a shift in investors’ expectations is needed to fuel growth
Dubai, United Arab Emirates, 9 May 2024: Experts shone a spotlight on the Middle East’s travel investment ecosystem at Arabian Travel Market (ATM) 2024, which concludes today, Thursday 9 May at Dubai World Trade Centre (DWTC) until Thursday 9 May. Panellists speaking during the exhibition’s entrepreneurship summit said levels of industry funding are growing in the region but that more needs to be done to support travel startups.
The Middle East’s contribution to global travel revenues currently stands at approximately 5%, which is comparable to the proportion of international startup funding it is attracting, according to data from McKinsey & Company. While levels of investment have increased significantly in the wake of the global Covid-19 pandemic, speakers noted that funding for regional travel entrepreneurs is growing from a relatively low base.
Panellists participating in the Nurturing Travel and Tourism Entrepreneurship to Drive Economic Growth summit included Margaux Constantin, Partner at McKinsey & Company; Danny Cohanpour, CEO of Trove Tourism Development Advisors; Charaf El Mansouri, Co-Founder and CEO of Dharma; Mona Faraj, Co-Founder and CEO of ExploreTECH; and Amna Al Redha, Manager of AviationXLab, which is part of the Emirates Group Future Technology and Innovations team.
Danielle Curtis, Exhibition Director ME, Arabian Travel Market, said: “It is encouraging to hear that travel investment is increasing in the Middle East, but it’s clear that more can be done to nurture entrepreneurs and startups operating in the region. While panellists acknowledged that there are various challenges facing those looking for funding, there is also significant potential for growth in this space and plenty of room for disruption.”
Summit speakers noted that various hurdles must be overcome by travel and startup entrepreneurs seeking investment, such as perceived levels of risk and long wait times on returns. Nevertheless, panellists argued that companies with genuine value propositions are well-placed to identify and attract the right backers.
Participants also highlighted the growing importance of technologies such as artificial intelligence (AI), Web3 and cryptocurrency in securing financial backing. Although these elements represent secondary focuses for the majority of travel entrepreneurs, panel members emphasised the importance of incorporating the latest innovations in business strategies when pitching to investors.
Commenting on the need for a shift in mindset from funders, McKinsey’s Margaux Constantin said: “If I look at our clients who are interested in investing in travel and tourism in the Middle East, 90% come with the same three parameters for investment, which are asset-light, EBITDA-positive and minimum-ticket-size [companies]. The reality is that this intersection is incredibly thin, so investors are going after the same very small pool of companies. We need a change in expectations and interests from investors to fuel entrepreneurship in [the region’s travel] sector.”
The largest edition of ATM to date will close today following four days of impactful industry discussions and unrivalled networking opportunities across the MICE, leisure, luxury and corporate travel sectors. Today’s sessions will focus on the next generation of travel and tourism talent with the Educating Young Entrepreneurs: Building a Career in Travel session and the Network with Future Leaders event.
The latest ATM news stories are available at https://hub.wtm.com/category/press/atm-press-releases/.
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Photo Caption: L-R: Gavin Gibbon, Senior Editor, Arabian Gulf Business Insight (AGBI); Amna Al Redha, Manager, Aviation X Lab; Mona Faraj, Co-Founder and CEO, ExploreTECH; Danny Cohanpour, CEO of Trove Tourism Development Advisors; Charaf El Mansouri, Co-Founder and CEO of Dharma; and Margaux Constantin, Partner at McKinsey & Company, at the Entrepreneurship Summit at ATM 2024.
For more information, log on to wtm.com/atm/en-gb.html.
Arabian Travel Market (ATM), now in its 31st year, is the leading international travel and tourism event in the Middle East for inbound and outbound tourism professionals. ATM 2023 welcomed over 40,000 attendees and hosted over 30,000 visitors, including more than 2,100 exhibitors and representatives from over 150 countries, across 10 halls at Dubai World Trade Centre. Arabian Travel Market is part of Arabian Travel Week. #ATMDubai
Next in-person event: 6 to 9 May 2024, Dubai World Trade Centre, Dubai.
https://www.wtm.com/atm/en-gb.html
Arabian Travel Week is a festival of events taking place from 6 to 12 May, within and alongside Arabian Travel Market 2024. Providing a renewed focus for the Middle East’s travel and tourism sector, it includes Influencers’ events, GBTA Business Travel Forums, as well as ATM Travel Tech. It also features the ATM Buyer Forums, as well as a series of country forums.
https://www.wtm.com/arabian-travel-week/en-gb.html
About RX
RX is a global leader in events and exhibitions, leveraging industry expertise, data, and technology to build businesses for individuals, communities, and organisations. With a presence in 25 countries across 42 industry sectors, RX hosts approximately 350 events annually. RX is committed to creating an inclusive work environment for all our people. RX empowers businesses to thrive by leveraging data-driven insights and digital solutions. RX is part of RELX, a global provider of information-based analytics and decision tools for professional and business customers. For more information, visit www.rxglobal.com.
About RELX
RELX is a global provider of information-based analytics and decision tools for professional and business customers. RELX serves customers in more than 180 countries and has offices in about 40 countries. It employs more than 36,000 people over 40% of whom are in North America. The shares of RELX PLC, the parent company, are traded on the London, Amsterdam and New York stock exchanges using the following ticker symbols: London: REL; Amsterdam: REN; New York: RELX. *Note: Current market capitalisation can be found at http://www.relx.com/investors
World Travel Market (WTM) portfolio comprises leading travel events and online portals across four continents. The events are:
WTM London is the world’s most influential travel & tourism event for the global travel community. The show is the ultimate destination for those seeking a macro view of the travel industry and a deeper understanding of the forces shaping it. WTM London is where influential travel leaders, buyers and high-profile travel companies gather to exchange ideas, drive innovation, and accelerate business outcomes.
Next event: 5 to 7 November 2024 at ExCel London.
WTM Latin America takes place annually in the city of São Paulo and attracts around 20,000 tourism professionals during the three-day event. The event offers qualified content together with networking and business opportunities. In this its ninth edition – there have been eight face-to-face events along with a 100% virtual one, which was held in 2021 – WTM Latin America continued to focus on effective business generation, and achieved the advance booking of six thousand meetings that were held between buyers, travel agents and exhibitors in 2022.
Next event: 14 to 16 April 2025 – Expo Center Norte, SP, Brazil.
WTM Africa launched in 2014 in Cape Town, South Africa. In 2022, WTM Africa facilitated more than 7 thousand unique pre-scheduled appointments, an increase of more than 7% compared to 2019 and welcomed more than 6 thousand visitors (unaudited), the same number as in 2019.
Next event: 9 to 11 April 2025 – Cape Town International Convention Centre, Cape Town http://africa.wtm.com/
About ATW Connect: Africa Travel Week’s digital arm, is a virtual hub packed to the seams with interesting content, industry news and insights, and the opportunity to hear from experts on a variety of topics in our new monthly webinar series. All with the aim to keep all of us in the travel and tourism industry connected. ATW Connect focuses on inbound and outbound markets for general leisure tourism, luxury travel and the MICE/business travel sector as well as travel technology.
WTM Global Hub, is the WTM Portfolio online portal created to connect and support travel industry professionals around the world. The resource hub offers the latest guidance and knowledge to help exhibitors, buyers and others in the travel industry face the challenges of the global coronavirus pandemic. WTM Portfolio is tapping into its global network of experts to create content for the hub. https://hub.wtm.com/