UAE Hotel Industry Achieves AED37.1 Billion Revenue Amid Tourism Surge

Hotel establishments across the United Arab Emirates reported revenues of approximately AED37.1 billion from January to October 2024, reflecting a 4% increase compared to the same period in 2023. The hotel occupancy rate also experienced growth, reaching nearly 78%, up 2.7% from the corresponding period last year. Abdulla bin Touq Al Marri, Minister of Economy and Chairman of the UAE Tourism Council, highlighted that these figures underscore the expanding growth of Emirati tourism across various sectors, supporting the National Tourism Strategy 2031, which aims to boost the tourism sector's GDP contribution to AED450 billion by 2031.

Dubai, as a significant contributor to the UAE's tourism sector, delivered over 2,700 new hotel rooms in the first half of 2024, bringing the total number of hospitality establishments to 716, with almost 149,750 rooms. Occupancy in Dubai remained stable at 78%, surpassing pre-Covid levels of 2019. The luxury and upper mid-scale segments saw the highest gains, with increases of two percent and 1.6 percent, respectively. Average Daily Rates in Dubai stood at around AED720, the highest in six years and an increase of 4.6% on H1 2023. Upper and upper mid-scale hotels experienced the most significant ADR growth, at 10% and 7%, respectively.

The UAE's commitment to enhancing its tourism infrastructure is evident in its ambitious plans to attract over AED450 billion in hotel industry investments over the next seven years. This strategy includes diversifying offerings by making substantial inroads into wellness and medical tourism and enhancing tourism initiatives in the Northern Emirates, including Sharjah, Fujairah, Ajman, and Ras Al Khaimah. Abdulla bin Touq Al Marri outlined these targets at the Future Hospitality Summit in Dubai, stating that the UAE is on track to achieve them.

The strong performance of the UAE's hotel industry is further demonstrated by the 9.31 million international visitors to Dubai in the first six months of 2024, a nine percent increase compared to the same period in 2023. The GCC and wider Middle East and North Africa region provided a quarter of the visitors, totaling 2.26 million people. Western Europe accounted for 20%, or 1.89 million visitors, while South Asia contributed 1.62 million, and Central Asia/Eastern Europe accounted for 1.37 million travelers.

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