
Table of contents 01Executivesummary &keyfindings 02Asectorintransformation–challengesandopportunities 03Surveyfindings:Aneedforbetterintegration04Avoidingthepitfalls:WhatnottodowhenimplementingAI05Whatdoleadersintourismandhospitalityneedtothinkabout?18 ReferencesAboutus 01 Executive Asartificialintelligence(AI)movesfromexperimentationtonecessity,itisredefininghowthetourismandhospitalityindustrycompetes,operatesand Astrategicenablerofcompetitiveness,AIisdrivingefficiency,sustainabilityandinnovationacrossthesector–transforminglegacysystems,anticipating Asthetechnologyadvances,itwillpowersmarter,moreresponsivedestinationsthatadaptdynamicallytovisitorneeds,enhanceresourcemanagementanddeliverseamless,intuitiveandmemorableexperiences. AcrosstheMiddleEast,countriesarerapidlydeployingAIandsmartdigitaltechnologiestoelevatevisitorexperiencesandstrengthentourismand InSaudiArabia,AIiscentraltoVision2030’sambitionofwelcoming150mannualvisitorsandincreasingtourismandhospitality’sshareofGDPfrom3% Similarly,theUAEispositioningitselfasagloballeaderinAI-poweredtourismandhospitality,usingdataanddigitaltoolstoenhancethetourismandhospitalityexperience,supportsecuredataexchange,providereal-time Tobetterunderstandthepaceanddirectionofthistransformation,PwCMiddleEastconductedasurveyofC-suiteandseniorleadersfromleadingtourismandhospitalityorganisationsacrosstheregion–representinghotel ThisreportexaminesthecurrentstateofAIadoptionintourismandhospitality,theoperationalchallengesbusinessesareaimingtosolve,thebarrierstoscaling The main obstacles Acrossthetourismandhospitalityecosystem,AI’simpactspansfourcriticalareas:Guestexperience,operationsanddatainfrastructure,humanresourcesand Dataprivacyconcerns64% AItalentshortages73% The insights from this study form the basis of a clearand actionable roadmap for AI adoption acrossthree key stakeholder groups: Policy and destination stewardship Governments,regulatorsandDMOsshapingnationaltourismstrategies. Operators Hotels,investorsandmanagementcompaniesleadingon-the-ground Intermediaries and enablers Travelagenciesanddigitalplatformsconnectingserviceprovidersand Asthetravelandtourismandhospitalitysectorheadstoward2030,AIstandsatthecoreofitsevolution,makingjourneyssmarter,experiencesricheranddestinationsmorecompetitive.ThefutureofAIintourismliesnotin Key findings Widespread adoption,limited scale Provenimpact reportmeasurableimprovementsin85% 91% ofsurveyrespondentsarepilotingoralreadyusingAI,yetonly3%haveachievedfullenterprise-wideimplementation–highlighting Skillsgap Infrastructurechallenges 85% citeashortageofemployeeswithAIexpertiseorexperienceinmanaging73% Data and complianceconcerns expressongoingchallengesrelatedto64% Focusedinvestment74% oforganisationsnowhavededicatedAIbudgets,signallingashiftfromexperimentationto 02 A sector in transformation– challenges and Tourismandhospitalityfaceaperfectstormofdisruption.GlobalinstitutionssuchastheOECD3highlightheadwindssuchasrisingcostsandinflation,geopoliticaluncertaintyandenvironmentalpressuresaskeyconstraintsforthesector.Whiletheseforcescreatecomplexity,theyalsoacceleratetheneedforinnovationandresilience.Inthisenvironment, PwC’s analysis has revealed that the greatestopportunities for AI adoption cluster around fourinterconnected focus areas that shape the Guestexperience Channelmanagement Humanresources Thesectorcontinuestofaceaglobaltalentcrunch.Labourshortages,highturnoverandwideningskillgapsarestretchingservicequalitymargins.AIpresentsapowerfulopportunitytoempowerpeople,notreplacethem.Fromadaptivelearningplatformsthattailortrainingtoeachemployee,topredictiveschedulingandworkforceanalytics,AIhelpsorganisationsbuildresilient, Today’stravellersarenolongersatisfiedwithstandardisedofferings.Theyexpectseamless,hyper-personalisedandauthenticexperiencesdesignedaroundtheirpreferences.Yetmanytourismandhospitalitybrandsstruggletokeepup.Rapiddigitalevolutionhaswidenedthegapbetweenwhatguestswantandwhatmanyoperatorscandeliver.AIbridgesthisgapbyanalysingreal-timedatato Meeting rising expectations Rebuilding the workforce for the future Humanresources Channelmanagement Competing in the age of AI agents Acrossallfourfocusareas,reputationemergesastheconnectiveforce–theultimatereflectionofhowwellorganisationsmeetexpectations,delivervalueandbuildtrust.Itisboththeoutcomeandtheamplifierofsuccess–shapedbyeveryguestinteraction,employeeengagementandoperationaldecision.AIenhancesthis TorealiseAI’spromise,theindustrymustmovebeyondpilotsandproofsofconcept.Trueimpactcomeswhenintelligenceiswovenintoeverydecision–empoweringteams, Moussa BeidasAIGo-to-MarketLead&FutureImpactCenterCo-SponsorPwCMiddleEast 03 Survey findings:a need for better 3.1 not yet fully scaled Oursurveyfindingsrevealthatasignificant94%ofregionaltourismandhospitalityleadersarealreadyexperimentingwithAI,pilotingspecificusecases.Thismarksadecisiveshiftfromexplorationtoearlyimplementation.However,surveydataalsoindicatesthat71%ofrespondentshave