Middle East travel spending set to soar 50% by 2030, driven by inbound tourism, luxury, and business travel boom
Travel spending in the Middle East is on course to surge by 50% by the end of the decade, reaching nearly USD 350 billion by 2030, according to the newly released ATM Travel Trends Report 2025. The report, developed by Arabian Travel Market (ATM) in partnership with Tourism Economics, highlights that the inbound travel to the Middle East is forecast to rise by 13% annually between 2025 and 2030, with Asia and Africa emerging as key source markets and outbound business travel forecast to surge at 9% per year. Danielle Curtis, Exhibition Director ME, Arabian Travel Market, said: 'The report's findings confirm that travel growth in the Middle East is incredibly strong, with annual growth averaging more than 7% through 2030. Bold national visions, game-changing developments, and enhanced connectivity are some of the key factors driving this momentum.' Leisure travel from Europe continues to dominate, accounting for half of all visitors, with India and the UK leading as top international source markets. China is also a rising force, with Chinese leisure spending projected to increase by an impressive 130% by 2030.
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Gulf Today
2 hours ago
- Gulf Today
Vietnam aims to become the next Asian tiger economy
Beneath red banners and a gold bust of revolutionary leader Ho Chi Minh in Hanoi's central party school, Communist Party chief To Lam declared the arrival of "a new era of development" late last year. The speech was more than symbolic- it signaled the launch of what could be Vietnam's most ambitious economic overhaul in decades. Vietnam aims to get rich by 2045 and become Asia's next "tiger economy" — a term used to describe the earlier ascent of countries like South Korea and Taiwan. The challenge ahead is steep: Reconciling growth with overdue reforms, an aging population, climate risks and creaking institutions. There's added pressure from President Donald Trump over Vietnam's trade surplus with the US, a reflection of its astounding economic trajectory. In 1990, the average Vietnamese could afford about $1,200 worth of goods and services a year, adjusted for local prices. Today, that figure has risen by more than 13 times to $16,385. Vietnam's transformation into a global manufacturing hub with shiny new highways, high-rise skylines and a booming middle class has lifted millions of its people from poverty, similar to China. But its low-cost, export-led boom is slowing, while the proposed reforms — expanding private industries, strengthening social protections, and investing in tech, green energy. It faces a growing obstacle in climate change. "It's all hands on can't waste time anymore," said Mimi Vu of the consultancy Raise Partners. Investment has soared, driven partly by US-China trade tensions, and the US is now Vietnam's biggest export market. Once-quiet suburbs have been replaced with industrial parks where trucks rumble through sprawling logistics hubs that serve global brands. Vietnam ran a $123.5 billion trade surplus with the US trade in 2024, angering Trump, who threatened a 46% US import tax on Vietnamese goods. The two sides appear to have settled on a 20% levy, and twice that for goods suspected of being transshipped, or routed through Vietnam to avoid US trade restrictions. During negotiations with the Trump administration, Vietnam's focus was on its tariffs compared to those of its neighbors and competitors, said Daniel Kritenbrink, a former US ambassador to Vietnam. "As long as they're in the same zone, in the same ballpark, I think Vietnam can live with that outcome," he said. But he added questions remain over how much Chinese content in those exports might be too much and how such goods will be taxed. Vietnam was preparing to shift its economic policies even before Trump's tariffs threatened its model of churning out low-cost exports for the world, aware of what economists call the "middle-income trap," when economies tend to plateau without major reforms. To move beyond that, South Korea bet on electronics, Taiwan on semiconductors, and Singapore on finance, said Richard McClellan, founder of the consultancy RMAC Advisory. But Vietnam's economy today is more diverse and complex than those countries were at the time and it can't rely on just one winning sector to drive long-term growth and stay competitive as wages rise and cheap labor is no longer its main advantage. It needs to make "multiple big bets," McClellan said. Following China's lead, Vietnam is counting on high-tech sectors like computer chips, artificial intelligence and renewable energy, providing strategic tax breaks and research support in cities like Hanoi, Ho Chi Minh City, and Danang. It's also investing heavily in infrastructure, including civilian nuclear plants and a $67 billion North-South high-speed railway, that will cut travel time from Hanoi to Ho Chi Minh City to eight hours. Vietnam also aspires to become a global financial center. The government plans two special financial centers, in bustling Ho Chi Minh City and in the seaside resort city of Danang, with simplified rules to attract foreign investors, tax breaks, support for financial tech startups, and easier ways to settle business disputes. Underpinning all of this is institutional reform. Ministries are being merged, low-level bureaucracies have been eliminated and Vietnam's 63 provinces will be consolidated into 34 to build regional centers with deeper talent pools. Vietnam is counting on private businesses to lead its new economic push — a seismic shift from the past. In May, the Communist Party passed Resolution 68. It calls private businesses the "most important force" in the economy, pledging to break away from domination by state-owned and foreign companies. So far, large multinationals have powered Vietnam's exports, using imported materials and parts and low cost local labor. Local companies are stuck at the low-end of supply chains, struggling to access loans and markets that favored the 700-odd state-owned giants, from colonial-era beer factories with arched windows to unfashionable state-run shops that few customers bother to enter. "The private sector remains heavily constrained," said Nguyen Khac Giang of Singapore's ISEAS-Yusof Ishak Institute. Again emulating China, Vietnam wants "national champions" to drive innovation and compete globally, not by picking winners, but by letting markets decide. The policy includes easier loans for companies investing in new technology, priority in government contracts for those meeting innovation goals, and help for firms looking to expand overseas. Even mega-projects like the North-South High-Speed Rail, once reserved for state-run giants, are now open to private bidding. By 2030, Vietnam hopes to elevate at least 20 private firms to a global scale. But Giang warned that there will be pushback from conservatives in the Communist Party and from those who benefit from state-owned firms. Even as political resistance threatens to stall reforms, climate threats require urgent action. After losing a major investor over flood risks, Bruno Jaspaert knew something had to change. His firm, DEEP C Industrial Zones, houses more than 150 factories across northern Vietnam. So it hired a consultancy to redesign flood resilience plans. Climate risk is becoming its own kind of market regulation, forcing businesses to plan better, build smarter, and adapt faster. "If the whole world will decide it's a can go very fast," said Jaspaert. When Typhoon Yagi hit last year, causing $1.6 billion in damage, knocking 0.15% off Vietnam's GDP and battering factories that produce nearly half the country's economic output, roads in DEEP C industrial parks stayed dry. Climate risks are no longer theoretical: If Vietnam doesn't take strong action to adapt to and reduce climate change, the country could lose 12-14.5% of its GDP each year by 2050, and up to one million people could fall into extreme poverty by 2030, according to the World Bank. Meanwhile, Vietnam is growing old before it gets rich. The country's "golden population" window — when working-age people outnumber dependents — will close by 2039 and the labor force is projected to peak just three years later. That could shrink productivity and strain social services, especially since families — and women in particular — are the default caregivers, said Teerawichitchainan Bussarawan of the Centre for Family and Population Research at the National University of Singapore. Vietnam is racing to pre-empt the fallout by expanding access to preventive healthcare so older adults remain healthier and more independent. Gradually raising the retirement age and drawing more women into the formal workforce would help offset labor gaps and promote "healthy aging," Bussarawan said. Associated Press
Arabian Post
2 hours ago
- Arabian Post
Trump's AI Chip Deal Could Open China Market to Downgraded Blackwell
President Donald Trump has authorised Nvidia and AMD to resume limited sales of artificial intelligence chips to China, marking a significant shift in U. S. trade policy. The agreement allows the companies to sell specific AI chips in exchange for a 15% revenue share paid to the U. S. government. This move deviates from previous strategies aimed at restricting China's access to advanced semiconductors due to national security concerns. The deal includes Nvidia's H20 chip and AMD's MI308, both intentionally downgraded for export. However, the Trump administration is considering extending this arrangement to Nvidia's more advanced Blackwell chips, albeit in a scaled-down form. Even with a 30%–50% performance reduction, these chips would still outperform China's domestic alternatives, potentially giving Nvidia and AMD a competitive edge in the Chinese market. Chinese authorities have responded cautiously to the deal. The Cyberspace Administration of China has cautioned major domestic tech firms, including Tencent, ByteDance, and Baidu, over their purchases of Nvidia's H20 AI chips, expressing concerns about national security and data privacy. The government has advised against using these chips in government-related projects and, in some cases, ordered a suspension of purchases. ADVERTISEMENT Despite these concerns, demand for the chips remains high due to their superior performance. Nvidia has emphasized that the H20 is not a military or government-focused product, noting that China does not rely on U. S. chips for official uses. The company is also preparing to launch a new artificial intelligence chip for the Chinese market at a significantly reduced price compared to its previously restricted H20 model. The upcoming GPU, part of Nvidia's latest Blackwell-architecture AI chips, is expected to cost between $6,500 and $8,000, making it substantially lower than the H20's price tag of $10,000 to $12,000. The Trump administration's decision to allow the sale of these downgraded chips represents a significant shift from the previous administration's approach to semiconductor exports. While the move has been welcomed by Nvidia and AMD, it has raised concerns among some lawmakers and analysts about the potential erosion of national security safeguards and the risks of enabling Chinese progress in AI.
Campaign ME
5 hours ago
- Campaign ME
Marketers react to American Eagle's Sydney Sweeney ad: Virality vs. value
If there's one topic that absolutely every marketer seems to have an opinion on at the moment – whether spoken out loud, or silently in coffee huddles, or not verbalised but constantly thought about – it's New York Stock Exchange-listed American Eagle Outfitters' Sydney Sweeney campaign. The discussions brought back the age-old debate about how marketing campaigns ought to be judged and measured – whether success is purely based on business outcomes, brand sentiment and brand lift studies, or its social impact and effectiveness in terms of moving the needle on purpose-led conversations? At the time of writing, American Eagle shares had climbed 17 per cent since the July 23 launch of the Sydney Sweeney ad campaign, raising the apparel retailer's stock to $12.58, marking a 23.94 per cent lift month on month and sending the brand's market capitalisation soaring to $2.2bn. However, data that drives past financial milestones shows a potential reputational and brand hit, with foot traffic falling 9 per cent year-on-year for the week of August 3 to August 9, a considerable drop considering a 4 per cent decline in foot traffic the previous week, according to data shared by retail market intelligence company pass_by. Although American Eagle's mention volume rose 18 times higher following the campaign launch, according to Signal AI data, its sentiment toward the brand plummeted from +50 to -31. Meanwhile, data and insights company Consumer Edge reported that traffic to American Eagle's US website bumped up more than 60 per cent on July 28, compared with the same day the previous year, closing off the first week of the campaign's launch on a high, although several other reports indicate that sales haven't risen considerably year on year, the brand has reportedly recorded more than $2mn in sales already. Campaign Middle East kept a close eye on how brand and marketing leaders in the region have reacted, sharing their opinions on various social media channels. Here's a brief compilation of some of their thoughts: Hubert Boulos, Founder of Das Kapital, said: (sic) 'Ok loads of interpretations, like ' is this the end of woke-ism?' etc.. in the end it's just a funny clever idea that built business beyond imagination: genes sound like Jeans , a celebrity and boom… sales through the roof ( it increased the market capitalization of the brand by 400 Million USD in one day!)That's why the algorithm hates advertising… it beats it anytime and it's not even close. This is clever and light yet it did wonders. Just imagine campaigns with a little bit more creativity and depth… Ideas do actually work!' Marwa Kaabour, Group Marketing and Corporate Communications Director, Al Masaood, said: 'We've seen this before. Brands chasing attention, not intention. Provocation over purpose. And it shows. Advertising can be funny. Yet, it can even be polarising. But it must, at the very least, be aware. Aware of timing. Aware of tone. Aware of the cultural moment we're all living in. Not this jeans, not for me, not for many. There's something profoundly unsettling about American Eagle's latest campaign featuring Sydney Sweeney — and no, it's not just the awkward wordplay. Let's forget the controversy for just a second. Strip it back to the core idea. Even then — it doesn't hold. It's not that the campaign is offensive by design. It's that it's creatively thin. A hollow concept dressed up in celebrity gloss. A tagline that leans on legacy ideals of beauty and genetics. And a moment of silence where cultural insight should've been.' Mazen Hayek, an advisor to senior officials and C-suite executives in the region, pointed out how American Eagle 'doubled down on its controversial ad campaign'. He said, 'American Eagle's ad featuring actress Sydney Sweeney has ignited a new brand-driven culture war about beauty standards, race and representation. While the campaign first went viral on social media, it also garnered coverage in roughly 3,000 news articles. Those generated more than 50 million readers, according to Memo readership data shared with Axios.' Fatima Shaikh, Director – Strategy, Content and Innovation – AI, Radix Media MENA, highlighted viewpoints of many others who sat on the fence, saying, 'For once, I don't seem to have an opinion. Not sure if it was good or bad. Well intended or cheeky. Smart or just bizarre.' Globally, Chelsea Burns, CEO, The Marketing Psychologist, shared, 'The campaign was engineered for outrage. Not resonance. Not representation. But reactivity. And that's exactly what happened. Over 200 million impressions in 48 hours. A dopamine spike for the brand. A cortisol crash for the audience. But here's the thing: 📉 Attention doesn't equal alignment. 📉 Nostalgia doesn't equal trust. 📉 And virality doesn't equal value.' Sharing a directly opposing viewpoint to 'virality doesn't equal value', Rhonda Swan, CEO, The Unstoppable Branding Agency, said, 'Virality beats vanilla. Was it controversial? Absolutely. Was it intentional? No question. Was it genius? 100 per cent. American Eagle didn't just drop a campaign … they dropped a cultural bomb. And it worked: ✅ $2M+ in sales ✅ Thousands of shares, stitches, and headlines ✅ Everyone talking…whether they loved it or hated it They didn't sell jeans. They sold attention. They sold a moment. They sold emotion …and the world clicked, commented and converted.' The jury's still out on whether the marketing world is going to reach a consensus. If you've got an opinion and would like it to be added into this article, drop us an email.
