Matthew Green, head of research at CBRE, notes that as the tourism industry continues to flourish, Bahrain’s hospitality sector is benefiting significantly, indicating strong future growth potential.  

Growth in international arrivals and tourism

The hospitality sector in Bahrain has experienced remarkable growth in recent years, driven by a steady rise in international arrivals. According to the Bahrain Tourism and Exhibitions Authority (BTEA), visitation in 2023 exceeded pre-pandemic levels, with inbound tourism surpassing 12.4 million passengers across land, air and sea. This impressive figure represents a 24.7 percent increase year-on-year, further confirming the ongoing expansion of Bahrain’s tourism sector. Notably, the majority of arrivals continue to enter via the King Fahd Causeway from Saudi Arabia, contributing to 90.0 percent of total arrivals. This growth reflects a 24.9 percent rise compared to 2022, highlighting the increasing significance of this key route. Moreover, other travel channels, such as the Bahrain International Airport and the seaport, also showed remarkable growth in arrivals. This underscores Bahrain’s appeal as a regional tourism and travel hub, attracting diverse visitors from across the globe.

Hospitality sector performance metrics

This positive trend in tourism visitation has been mirrored in the performance of Bahrain’s hospitality sector, showing significant growth. Key indicators, such as hotel occupancy rates, average daily rates (ADRs) and revenue per available room (RevPAR), all showed substantial improvements in H1 2024. Specifically, Bahrain’s hotel occupancy rates rose by 7.0 percent compared to the same period in 2023, highlighting the sector’s recovery. Additionally, ADRs increased by 2.6 percent, further reflecting a positive trend in pricing strategies across hotels. Meanwhile, RevPARs saw an impressive 9.8 percent increase, demonstrating the continued strength of Bahrain’s hospitality industry. These strong performance metrics indicate the sector’s resilience, as it continues to grow and thrive.

New developments and regional collaborations

The review also highlights ongoing developments in Bahrain’s hospitality landscape, such as the opening of Conrad Bahrain Financial Harbour in May 2024. This new addition to the market brings a luxurious offering, catering to both business and leisure travelers. Additionally, the introduction of the Cruise Arabia Alliance, involving Bahrain, Dubai, Abu Dhabi and Oman, enhances the region’s appeal as a multi-country cruise destination. Bahrain’s continued focus on MICE tourism, alongside strong collaborations with neighboring countries, solidifies its position as a growing hub for both tourism and business conferences. These efforts further diversify Bahrain’s hospitality offerings, making it an even more attractive destination for both international tourists and investors.

Bahrain’s growing hospitality sector and economic impact

As Bahrain’s hospitality sector continues to thrive, it remains an essential driver of the kingdom’s economic growth. The sector not only attracts international visitors but also boosts investment opportunities in the tourism and real estate markets. By diversifying its offerings and improving infrastructure, Bahrain is set to maintain its position as a leading hospitality destination in the region. The growth of the sector contributes to the broader economic development and highlights Bahrain’s growing significance in the global tourism and hospitality industries.