UAE tourism sector booming with $12 billion in hotel revenue last year

Hotels in the UAE recorded a 3 per cent annual rise in revenue to Dh45 billion ($12.3 billion) last year, reflecting a robust uplift in the country's tourism sector, according to the Minister of Economy.

The hotel occupancy rate hit 78 per cent during the period, ranking among the highest both regionally and globally. The number of hotel guests in the Emirates reached 30.8 million last year, up 9.5 per cent from the same period in 2023, Abdulla bin Touq, Minister of Economy, said on Monday.

This represents 77 per cent of the hotel guest target set by the National Tourism Strategy 2031, said Mr bin Touq, who is also chairman of the UAE Tourism Council.

“With the current growth trajectory, we are well on track to achieving the strategy’s ambitious goal of attracting 40 million hotel guests,” he said.

“This growth was supported by the opening of 16 new hotels across the seven emirates, taking the total number of hotels in the country to 1,251 by the end of the year. In addition, the number of hotel rooms also grew, reaching 216,966 by the end of 2024, up 3 per cent.”

Tourism is considered one of the strategic pillars towards transitioning towards a new economic model.

The National Tourism Strategy 2031, launched in November 2022, aims to attract 40 million hotel guests by 2031 and Dh100 billion in tourism investment to the UAE.

The strategy should push the tourism sector's contribution to gross domestic product to Dh450 billion by 2031, increasing each year by Dh27 billion, Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, said in 2022.

The strategy includes 25 initiatives and policies to support the development of the tourism sector in the country. It will also encourage investment in travel, aviation and hospitality, create new investment opportunities, and attract more international companies to the local market.

“The UAE continues to advance its national efforts to develop innovative tourism initiatives and projects, while strengthening collaboration with all relevant local and international tourism bodies,” Mr bin Touq said.

“These efforts aim to elevate the UAE’s status as the best tourism identity globally by the next decade. We are also focused on diversifying special interest tourism offerings, building the sector’s capacities, fostering the participation of Emirati talent, and driving greater investment across all areas of the tourism ecosystem.”

Dubai tourist attractions - in pictures

Dubai International Airport (DXB) handled a record 92.3 million passengers last year, an annual increase of nearly 6 per cent.

The world's busiest airport by international traffic beat its November forecast of 91.9 million annual passengers last year, up from 87 million in 2023 and exceeding its pre-Covid record of 89.1 million in 2018.

Dubai welcomed nearly 17 million international visitors in the first 11 months of last year, the Dubai Department of Economy and Tourism's latest data shows.

Abu Dhabi added 37,000 jobs to its tourism sector last year as more visitors flocked to the emirate's hotels, restaurants and attractions amid increased investments in promotional campaigns globally. The tourism industry is expected to reach a total of 225,000 jobs last year, up from 188,000 in 2023.

Abu Dhabi's tourism sector is expected to have contributed Dh55 billion to the emirate's GDP in 2024, up from Dh46 billion the previous year, with a “north star” target of more than Dh90 billion by 2030, Saood Al Hosani, undersecretary of the Department of Culture and Tourism – Abu Dhabi (DCT Abu Dhabi), told The National last year.