dubai tourism
The entertainment industry in the MENA region offers a wide range of opportunities, especially in light of the widespread interest in the industry and its related sectors by many governments in the region, as well as the innovative ideas provided by new technologies to enhance the vitality of the sector and its presence in various fields, levels The structure and mechanism of rapid development.
The media and entertainment industry in the MENA region is estimated to grow at a CAGR of 7.4% between 2021 and 2026, reaching USD 47 billion. The sector and its objectives, including economic conditions. Due to the development of world geopolitics and the long-term crisis it caused, especially the economies of emerging countries.
The impact of these challenges varies according to the economic capabilities of countries in the region. While some countries continue to struggle to grow the industry, in addition to public demand for a variety of entertainment channels, there are others that still face difficulties in directing wider appropriations to enhance the industry and realize added value from it, given that many households (especially individuals in low-income countries), forcing them to cut back on spending beyond basic needs.
Basic department
Economist Dr Syed Khader said in an exclusive statement to Sky News Arab Economics:
- The degree of vulnerability of the entertainment industry in the Arab region to economic conditions varies from country to country, depending on the standard of living and GDP per capita of different countries and the consequent increase in entertainment without compromising fundamentals and priorities. of spending ability to live on.
- Government and private spending on entertainment is not a luxury, nor is it a major priority that can be overlooked in difficult economic times.
- “Given the various geopolitical developments, the development of the situation at the global economic level has led to tense economic conditions in many Arab countries, and while it has affected spending priorities, entertainment-related sectors, most importantly tourism, fall under these investment priorities One, because it’s one of those things, it’s going to help the flow of hard money.”
- There are countries facing economic difficulties where one of the main sources of income is tourism revenue, therefore, in view of these circumstances, the development and promotion of the entertainment industry as a means of supporting the economy is important and necessary.
“The development of the entertainment industry attracts foreign tourists and attracts domestic and foreign investment, so other priority sectors can be activated through these revenues to fill the current deficit,” he added, stressing the importance of a balance reached on sectors that constitute an important source of income Consistent, especially for countries heavily dependent on tourism, such as Tunisia and Egypt, its impact on tourism revenue streams.
In this regard, Khader referred to the experience of the Kingdom of Saudi Arabia and the United Arab Emirates, and the prosperity of their entertainment industries, the establishment of special entertainment zones, taking into account the enthusiasm and economic resources of diversification of income sources, “noting the difference The Arab countries – including Egypt – are full of exceptional tourism potential – and it has many opportunities for the sector to prosper by explicitly promoting the sector and allocating investment for its development.
Prosperity in the Bay Area
He explained that Saudi Arabia, for example, has been able to achieve great success in this regard, through the General Directorate of Entertainment and the events and special projects it hosts, which has made it a destination for many celebrities from around the world. This is a way of strengthening the kingdom’s capabilities in the sector and tourism, which is no longer only relevant to religious tourism.
In this context, a recent report by the global “Fiver” platform specialized in live entertainment monitors the most prominent factors supporting the development of the entertainment industry, especially in the Gulf countries, especially in the wake of the COVID-19 pandemic, highlighting that some goals in this regard.
- The Kingdom of Saudi Arabia plans to inject an estimated US$69 billion into the industry by 2030, which will provide more than 200,000 jobs.
- The UAE leisure and entertainment industry is expected to grow by 10% by 2027 and attract 25 million tourists by 2025.
- Qatar’s tourism contribution grew by 12% due to the hosting of the World Cup and strengthening of its status as a tourist destination. The country strives to attract 6 million tourists a year.
However, in the face of the wide-ranging opportunities this industry offers to attract foreign tourism, some low- and middle-income Arab countries face many obstacles at home, especially in terms of the impact of economic factors and declining purchasing power, whether it is the new crown epidemic, the war in Ukraine and the crisis s consequence. Energy and supply chains, and the crisis that some of these countries are suffering from, and what factors are casting a shadow over the global economy. The entertainment sector, both in terms of its development expenditures and the interest of the citizens of these countries in recreational activities and various activities.
economic pressure
Expressing the scenario in an exclusive statement to the Sky News Arab Economist website, Jordanian economist Hussam Ayesh refers to the economic pressures faced by citizens of many Arab countries, which have reduced opportunities for them to engage in entertainment-related industries in exchange for spending income. Meet basic needs.
He said that due to high inflation and related economic factors, prices continue to rise, but household income may decrease or remain flat, and purchasing power will decline or decline, so it is necessary to prioritize and redistribute expenditures. And entertainment is usually the final consumption, for families that meet basic needs such as food, clothing, housing and transportation.
At the same time, the Jordanian economist pointed out that “the entertainment industry is one of the factors driving inflation in the Arab countries, especially after recovering from the impact of the COVID-19 pandemic and after the shutdown period that the industry suffered. “After huge losses, the industry resumed activity but at higher costs. “Notably, this puts an additional burden on households, which pushes up inflation.
IMF forecasts point to a sharp slowdown in growth in the MENA region this year, to 3.1% next year and 3.4% next year, compared with 5.3% growth in 2022, for the following reasons, most notably as countries struggle to cope with inflation. Restrictive measures to fuel inflation, including unprecedented interest rate hikes and the lingering fallout from the Ukraine crisis.
“Increased costs and higher prices have affected people’s spending on entertainment and their ability to enjoy the tourism and leisure activities that summer brings,” Ayesh added, citing the situation in Jordan, where entertainment for some families is usually done through Moved to carry out. In the summer, Jordanians travel back and forth (daily) between regions, while few Jordanians enjoy extended vacations, and some are forced into debt.
The scenario reflects some of the challenges facing the entertainment industry, including government and private sector spending on entertainment development and public demand for entertainment amid widespread pressure from economic conditions to force rescheduling. Given the high costs and prices associated with entertainment, we have prioritized a variety of priorities including: This includes arts and cultural events, as well as concerts and even summer trips.
In addition, under the pressure of these economic conditions in some countries, a series of other challenges related to the entertainment industry escalated, including illegal access to entertainment products (visual content, ball games, parties, games, etc.), among other challenges.