Is there hope for startups in the tourism sector?

Is there hope for startups in the tourism sector?

The accelerating pace of vaccination efforts worldwide has led to encouraging signs of recovery in the tourism industry, but as the virus continues to mutate, the fear of infection is still palpable, forcing travel operators and hospitality professionals to embrace physical-digital tourism, one that guarantees holidaymakers an enjoyable in-person and digital experience.

In that regard, leveraging technology in terms of improving operational efficiency and customer experience has become paramount to salvage the ailing industry and bring it back on its feet, especially in our region, where tourism is largely tied to the growing gig economy. 

While tourism constitutes the biggest source of income for most Arab countries, the startup ecosystem in that space has been widely underserved with minimal VC activity. So far this year only four tourism and travel-related startups managed to raise a total investment of $8.7 million of which $6 million was invested in Saudi Arabia-based vacation rental platform Gathern. 

But several new initiatives aimed at startups working in the tourism, hospitality and travel sector across the Middle East are attempting to change this and invigorate the space. 

In the wake of the pandemic, Jordan-based venture capital firm VentureX has launched an industry-focused accelerator programme, including