UAE hotels record 24% increase in revenue to over $7bn in first seven months

Hotels in the UAE recorded a 24 per cent annual increase in revenues to Dh26 billion ($7.1 billion) in the first seven months of the year during a rebound by the country’s tourism sector , state news agency Wam reported, quoting the Minister of Economy. The h otels hosted 16 million guests in that time, growth of more than 15 per cent compared with the same period in 2022, according to Abdulla bin Touq, who is also head of the Emirates Tourism Council. A total of 56 million hotel nights were booked, while the occupancy rate increased by 5 per cent annually to 75 per cent from January to July, he said during a meeting of the Council. The minister added that the number of hotels in the UAE reached 1,224. “These indexes contribute to increase the UAE’s competitiveness in the international tourism landscape and fulfil the national target of raising the tourism sector’s contribution to the gross domestic product to Dh450 billion by the next decade under the We The UAE 2031 vision,” Mr bin Touq said. The travel and tourism sector is projected to contribute Dh180.6 billion to the UAE’s economy this year, representing nearly 10 per cent of the total, the World Travel and Tourism Council said in a May report. The estimate for 2023 is only 1.6 per cent lower than the 2019 high of Dh183.4 billion, the global tourism body said. Last year, the travel and tourism sector ’s contribution to the UAE’s GDP grew by more than 60 per cent to reach nearly Dh167 billion, representing 9 per cent of the country’s economy, the WTTC said. The number of international visitors to Dubai exceeded pre-coronavirus levels in the first half of this year as the emirate's hospitality and tourism sector posted a record performance. International visits to Dubai rose 20 per cent on an annual basis in the January to June period, the Dubai Media Office said in August, citing data from Dubai’s Department of Economy and Tourism. The emirate welcomed 8.55 million international visitors during the period, the best first-half performance yet, exceeding the pre-pandemic figure of 8.36 million tourists in the first half of 2019. Abu Dhabi aims to attract more visitors and is “on track” to meet its target of 24 million visitors this year , up from 18 million last year, Saood Al Hosani, undersecretary of the emirate's Department of Culture and Tourism, told The National in June. The UAE capital plans to increase the tourism sector's contribution to its GDP to 12 per cent by 2030, up from 5 per cent this year, he said at the time. The Emirates Tourism Council discussed a range of topics, including the latest developments in the implementation of the National Tourism Strategy 2031 , and mechanisms for enhancing co-operation between the government and private sector to achieve its goals, Wam reported. The strategy was launched last November and aims to attract 40 million hotel guests by 2031 and Dh100 billion in tourism investment to the UAE. It should push the tourism sector’s contribution to GDP to Dh450 billion by 2031, increasing each year by Dh27 billion, Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, said at the time. The strategy includes 25 initiatives and policies to support the development of the tourism sector in the country. It is based on strengthening the national tourism identity, developing and diversifying specialised products, building capabilities, encouraging Emiratis to become involved in the sector, and increasing investments. The strategy will also encourage investment in travel, aviation and hospitality, create new investment opportunities, and attract more international companies to the local market. The Emirates Tourism Council also reviewed the world’s coolest winter campaign , the UAE’s first federal domestic tourism initiative, according to Wam. The campaign helped hotels achieve a 20 per cent annual increase in revenues to Dh1.8 billion, compared with Dh1.5 billion the winter before. In the current campaign, the number of domestic tourists increased to 1.4 million, an increase of 8 per cent over last time. The council’s meeting also recorded the formation of a hospitality advisory committee, which aims to stimulate growth, increase competitiveness and make the sector more diversified in line with international best practice, Mr bin Touq said. The committee will also seek to improve the UAE’s appeal for tourism investments, create tourism initiatives, and encourage communication with private sector institutions and companies operating in the hospitality sector, Wam reported.

UAE hotels record 24% increase in revenue to over $7bn in first seven months

Establishments hosted 16 million guests from January to July at 75% occupancy, Minister of Economy says