He discussed how Middle East hospitality is evolving through resilience, digital transformation, and sustainable growth strategies.

The Middle East’s travel and hospitality industry undergoes rapid transformation as tourism demand rebounds, large-scale developments accelerate, and governments continue investing in economic diversification initiatives. Destinations in the region are going beyond luxury offerings and infrastructure expansion, as they now compete through digital innovation and sustainability-focused tourism strategies.

Hospitality businesses are also navigating a more dynamic environment that is heavily influenced by evolving traveller expectations, rising cost pressures, and increasing investor scrutiny around governance and sustainability. Hence, operators are placing greater emphasis on future-ready business models that can respond to changing market conditions.

Providing insight into this evolving landscape is Walid Daoud, Partner at KPMG Lower Gulf. He has more than two decades of experience across audit, tax, and advisory services in the MENA region and has worked with clients in hospitality, transportation, logistics, family businesses, and government-owned entities. He currently leads the audit of several major clients within these sectors whilst also heading the French Desk and Free Zones Desk for KPMG UAE.

As a judge for the TDM Travel Trade Excellence Awards 2026 - Middle East, Daoud discussed hospitality resilience, tourism investment, ESG integration, operational transformation, and the strategies that will equip organisations for sustainable growth in the region.

As a Partner at KPMG Lower Gulf, how has your role evolved alongside the region’s rapidly changing tourism landscape? 

We have worked closely with our hospitality clients as they navigated challenges and continuously updated their forecasts during periods of uncertainty. It is essential for businesses in this sector to have clear plans that ultimately impact their bottom-line performance, going concern assessment, and the preparation of their financial reports. This requires a deeper understanding of each client’s strategy and how it responds to market shifts. 

As an audit partner, my responsibilities have increased significantly, particularly in addressing key accounting and auditing considerations within our audit strategy. We have also exercised greater professional judgement in adapting our audit approach to evolving market conditions. 

How has the post-pandemic recovery reshaped financial strategies for hotels and leisure operators in the Middle East? 

Hotels and hospitality businesses have developed a strong sense of adaptability following  COVID-19, continuously readjusting to market conditions when needed. They have also accelerated the use of digital tools and automation, including self-check-in technologies, to improve operational efficiency, optimize resources, and enhance the guest experience. We also witnessed the rise of the domestic market post-pandemic. In addition, hospitality players shifted their focus toward regional customers who have easier access to key destinations such as Dubai.

What role do data and financial transparency play in attracting global tourism investments to the region?

The availability of data and financial transparency published by the Dubai Department of Economy and Tourism allows investors to better assess risk and performance, ultimately enhancing decision-making. 

Confidence in government initiatives across the United Arab Emirates has played a significant role in attracting global tourism investments. Trust in long-term development plans and economic diversification strategies has strengthened investor sentiment in the hospitality sector. This was particularly evident during COVID-19, when strong governance supported a faster recovery. 

How prepared are Middle East hospitality businesses for ESG reporting and compliance, and what influences their readiness? 

Middle East hospitality businesses are increasingly advancing their ESG practices, driven by the rapid growth of tourism and hospitality across the region, particularly in GCC countries. Easier travel access, major international events, and government-led tourism strategies have accelerated sector development and increased the focus on sustainable practices. 

Governments and developers now recognise hospitality and tourism as key contributors to economic diversification, GDP growth, and job creation. As a result, sustainability considerations are being integrated into hotel design, construction, and operations through initiatives such as green finance, green building standards, renewable energy adoption, water management, waste recycling, and carbon reduction programmes. 

The region has also seen the emergence of large-scale sustainable tourism projects led by major hospitality players, helping to establish higher ESG benchmarks for the industry. 

In addition, financial institutions are supporting the sector through green bonds and sustainability-linked financing, positioning the Middle East as an increasingly attractive and sustainability-focused hospitality destination.

What advice would you give to emerging hospitality businesses seeking to scale in the  Middle East?

The future remains promising in the UAE, as challenges within the hospitality industry are often temporary. As demonstrated during COVID-19, the sector showed strong resilience, rebounding quickly and even exceeding pre-pandemic performance levels. 

Cost optimisation is a natural response during periods of low occupancy, whilst strategic investments typically follow during recovery phases. For example, Burj Al Arab and Armani  Hotel Dubai have undergone renovations to further enhance the guest experience. 

Emerging businesses should focus on long-term value creation, operational efficiency, and customer experience. Building flexibility into their business models will be key to sustaining growth in a dynamic market. 

Having assessed the submissions to the TDM Travel Trade Excellence Awards last year, how should this year’s nominees position themselves in the market to ensure sustainable growth? 

Nominees this year should position themselves not only as high performers but also as forward-thinking organisations built for long-term resilience. Sustainable growth in the travel industry requires a clear strategic vision that balances innovation with consistency, ensuring that success is not dependent on short-term trends alone. 

This includes investing in digital transformation, strengthening customer relationships, and building adaptable business models that can respond to shifting market dynamics. Companies should also demonstrate a commitment to sustainability — both environmental and economic — as well as the ability to build strong partnerships across the travel ecosystem. 

Ultimately, nominees that can clearly demonstrate how their strategies deliver ongoing value, maintain competitiveness, and evolve alongside industry changes will stand out as leaders capable of sustaining growth well into the future.