There is a high probability you will spend your next vacation in one of the several desert Sheikhdoms on the edges of the Persian Gulf that are rapidly emerging as hot destination spots for leisure travelers from across the world. The Middle East is the fourth most visited place in the world, its air passenger traffic is outpacing the global average, and regional powerhouses like Dubai are among the fastest-growing cities on the planet.

Throughout the Middle East, tourism is being used as a catalyst for broader economic growth. According to Oxford Economic Forecasting, the tourism sector provided 2.6 percent of the gross domestic product of Middle Eastern countries in 2006, and predicted a rise to 3.1 per cent by 2016. It also indicated that nearly one in every 10 jobs is now being provided by the tourism and travel industry in the region. An array of investments and developments are underway in countries of the region.

In Jordan, tourism and real estate developments valued at $8.5 billion are expected to blossom in the following years, while Egypt positions itself to attract up to 16 million visitors by 2016 nearly twice the number of current visitors. Even Libya is vying for a piece of the pie. As the country emerges from nearly three decades of isolation it is moving to team up with foreign companies to develop joint projects. Yet, it is the Persian Gulf countries that are setting the pace of the region’s tourism bonanza.

As figures from the United Nations World Tourism Organization (UNWTO) show, international tourist arrivals in the region grew from 9.6 million in 1990 to 39 million in 2005, indicating a nearly 10 percent annual growth which is in stark contrast to the global average of 4 per cent annual growth. The UNWTO expects the region to draw nearly 65 million international travelers by 2020. Naturally, this tourism boost is having a positive impact on regional economic development.

To quote Jean-Claude Baumgarten, President of the World Travel and Tourism Council, Persian Gulf countries "have realized how the direct impact of international visitors and resident travel and tourism percolates throughout their economies and have made strategic decisions from the highest levels to focus attention, resources, and effort to achieve the potential."

In order to keep up with the pace of development and to ensure future investment, regional tourism boards have focused on participating at global trade events such as the World Travel Market (WTM) in London. The region had a strong presence at the recent WTM meeting with representation from 15 regional tourism bodies and hundreds of companies from the Middle East moving to expand the tourism sector and showcasing the region’s multi-billion dollar buffet of attractions and amenities.

Aiming to brandish Dubai as a year-round business and tourism destination, the Dubai Department of Tourism and Commerce Marketing plans to attend nearly 28 overseas travel exhibitions in 2007. Once only a transit city for travelers en route to Asia or the Antipodes, Dubai has transformed itself into an undisputable destination city in the region. The emirate saw a seven per cent increase in arrivals in the last year and aims to attract 15 million visitors by 2010 and an amazing 40 million visitors by 2015. It holds the leading position in the region’s events market hosting more than two thousand corporate meeting, exhibitions, and conventions in 2005 which generated $3.3 billion. Dubai’s famous man-made islands, the Palms and World projects, are finally taking shape extending the city’s beachfront by 400 kilometers and providing space for new residential projects and hotels.

Only a decade ago the city’s desert coastline was barely developed. Today, travelers can choose from a rotating indoor ski mountain, an under-water luxury hotel, what will soon be the world’s largest shopping mall and the world’s tallest building. Three years ago the emirate launched its pivotal family-oriented tourism project, Dubailand. Larger than Liechtenstein, Dubailand will be the Middle East’s answer to Disneyland and will have 12 entertainment theme parks, including the largest water parks in the world and a dinosaur theme park being developed by London’s Natural History Museum. The city is also developing a complete Sports City and the Great Dubai Ferris Wheel which will be larger than the London eye. Groundwork has also started for the Snowdome, a one billion dollar winter wonderland project complete with snow and ice leisure parks and hotels which will be completed by 2008.

Abu Dhabi has also been moving towards expanding its tourism portfolio. The Abu Dhabi Tourism Authority is also moving to launch the emirate as an attractive target place for tour groups and has moved to reinforce its offices in Western Europe. It plans to increase the number of visitors to the emirate from the current level of one million to three million by 2015. The emirate is also developing the Sadiyaat Island which is half the size of Bermuda. The development will include 19 kilometers of white-sand beaches and 29 hotels, golf courses and marinas. Moreover, the emirate has the advantage of having hundreds of kilometers of natural coastline as well as more than 200 natural islands that are attractive to eco-tourists.

Along with the UAE, other Persian Gulf countries are also vying to attract tourists. Oman is arguably the most naturally-endowed country in the region. Unlike Dubai or Abu Dhabi, Oman provides the "authentic Arabian" experience with a perfect blend of the ancient and the modern. The country has successfully marketed itself as an alternative tourism spot and has kept a solid grip on its heritage and culture. Moreover, tourism in the country has been described as more relax than that of the neighboring emirates. Muscat is also following its neighbors in investing in man-made Island resorts. The Wave will include an 18-hole golf course designed by Greg Norman, a marina and luxury hotels. Oman is also busy creating other amenities that will attract tourists. It is building a 6,000-seat convention center in the center of Muscat and hopes to attract international conventions and exhibitions in the near future.

Bahrain also has a number of projects under development including the Amwaj Islands, Durrat Al Bahrain, the Two Seas, as well as waterside developments in Bahrain Bay and Lulu Island. The small sheikhdom is also planning the $15 billion Blue City which has both hotel and real estate components. It is also hoping to launch a specialized promotional development plan which will highlight the country’s unique assets and help it attract its share of tourists. It is setting up an independent tourism board and will be taking part in international forums and exhibitions in the coming year.

Mohammad Abdul Gaffar, Bahrain’s Information Minister, believes that "tourism has become a specialized industry, and every country needs to improve its promotional programs to keep up with the latest developments." The Kingdom hopes that in ten years, tourism’s share of the gross domestic product will reach thirty percent. In 2004, Bahrain was also included in the Formula One Grand Prix circuit which also gave its tourism industry new life.

Bahrain’s neighbor Qatar is also moving strongly ahead with its tourism development plans. The gas-rich kingdom wishes to promote itself as the "Monaco of the Middle East" offering a high-end luxurious stay that rivals that of "Las Vegas-style" Dubai. At the heart of the country’s development plan rests the multi-billion dollar Pearl project which is a combination of residential and hotel amenities and will give the country a firm foot within the regional tourism market. Qatar has also moved to attract tourists by hosting sports events like the 15th Asian Olympic Games, a first in the region.

In the UAE alone nearly 55,000 additional hotel rooms in the five and four star category will be entering the market in the next five years. Dubai, often described as the regional nucleus of regional tourism, is expected to nearly triple its number of five star hotels from 48 at the end of 2006 to 130 by 2010. Moreover, the city is moving to diversify its hotel capacity as it strives to not only cater to the super-rich but also to the mid-market and budget traveler.

Other countries in the Persian Gulf region are also moving ahead with plans to increase their hotel capacity. Oman is focusing on both mid and up-market hotel rooms and is expected to reach a room capacity between 10,000 and 12,000 by 2010, up from the current supply of nearly 7,000 rooms.