Luxury Travel In The UAE Isn't Just Growing - It's Evolving

There's a quiet revolution in the UAE tourism space - and it's happening at the very top. Luxury travel, which was once a subset of the broader tourism sector, is rapidly becoming one of its fastest-growing and most dynamic segments. The entry of ultra-high-net-worth (UHNW) individuals in the UAE is not only changing our economy - it's also changing the way travel is being experienced, crafted, and serviced across the region.

In recent years, there has been a significant increase in UHNW migration to the UAE, with Dubai and Abu Dhabi being the primary destinations. These are not tourists or expats, but entrepreneurs, investors, celebrities, family offices, and industry heads who are moving their lifestyle, business, and life to this part of the world. What's attracting them? It's a combination of political stability, world-class infrastructure, favourable tax conditions, and a forward-thinking government committed to innovation.

Over the past two years, the UAE has transformed from a regional luxury destination into a global powerhouse in ultra-high-end tourism. The numbers don't lie: the UAE's luxury travel market generated $16.66 billion in 2024 and is forecast to reach nearly $29.6 billion by 2030, growing at a 10.4 per cent CAGR from 2025–2030 according to the latest industry data. Meanwhile, across the Middle East and Africa, luxury travel is projected to surge from $95.7 billion in 2023 to $167.4 billion by 2030, at an 8.3 per cent CAGR.

This flight of elites dovetails with a broader migration of wealth. A report published by Henley & Partners projects that the UAE will see a record 6,700 millionaires relocate in 2024 - nearly double that of the US. These UHNWIs bring global spending habits and sky-high expectations that are reshaping luxury travel in the Emirates.

Driving forces behind the boom

1. Wealth migration: With nearly 6,700 millionaires arriving in 2024, the UAE isn't just a lifestyle magnet - it's rewriting its luxury ecosystem.

2. Skyrocketing spend: The GCC's luxury goods market hit $12.5 billion in 2023, growing at twice the global rate. Nearly 60 per cent of the UAE's luxury travel market growth stems from these high-net-worth tourists.

This new wave of residents comes with expectations. They don't just want a holiday - they want seamless, tailored, and often discreet travel experiences that match their lifestyles. For them, travel is not tourism - it's identity, status, privacy, and experience, and that has huge implications for the UAE's travel and tourism sector.

At musafir, we've seen this shift firsthand as a distinct rise in premium-tier bookings - our ultra-luxury segment bookings have climbed nearly 40 per cent in the last year. There's a growing appetite for bespoke itineraries, private jet bookings, luxury cruises, ultra-premium resorts, and even curated experiences that defy the ordinary - think glamping in the Rub' al Khali under Michelin-starred catering, or a last-minute ski trip to Courchevel with private instructors and chalet chefs. These aren't outliers anymore. They're the new baseline for a small but influential segment of our clientele.

The UAE is uniquely positioned to meet this demand. Not only do we have the supply - luxury resorts, exclusive desert retreats, premium airlines like Emirates and Etihad - but we also have the ambition to address this demand. Hoteliers, tourism boards, and developers are doubling down on the luxury segment. In 2024, Dubai welcomed 18.72 million overnight visitors, a 9 per cent increase year-on-year, with five-star average hotel occupancy hitting roughly 77–78 per cent.

Meanwhile, over 150 luxury hotels were in operation, accounting for nearly half of the Gulf's upscale room stock. Abu Dhabi too is registering a 26 per cent surge in international hotel stays Jan–Oct 2024, compared to pre-pandemic norms. The Dubai Department of Economy and Tourism (DET) and the Department of Culture and Tourism – Abu Dhabi (DCT) are both supporting initiatives to upscale high-end products, from customized cultural tourism to luxury wellness escapes. Year on year, there is an increasing interest shown by local tourism boards, such as Sharjah Tourism, Ras Al Khaimah & Fujairah, to attract tourists as well as UAE residents in booking hotel stays, exclusive experiences, niche activities & more.

To be fair - it's not just domestic demand. The UAE is increasingly becoming a luxury travel hub for the wider region. We're seeing more clients use Dubai as a base for onward travel to the Maldives, the Seychelles, the Swiss Alps, or even bespoke safari experiences in Africa. The connectivity from the UAE is unmatched due to Dubai and Abu Dhabi airports being central hubs for Asia, and for UHNW individuals, time is the ultimate currency.

Technology is playing a major role in enabling this shift. We're now leveraging AI to better anticipate travel preferences, customize experiences down to the last detail, and deliver hyper-personalised itineraries. We're deploying AI-driven personalisation - from predictive guest preferences to real-time digital concierges. These tools let us offer private chauffeur pickups, room scent customisations, tailored wellness alerts efficiently and at scale. What used to require a luxury concierge team can now be offered digitally - but with a human touch layered in. From private airport transfers to in-room pillow preferences, technology is letting us scale exclusivity without diluting it.

We're also seeing new luxury travel trends emerge. Multi-generational family travel is big - especially post-Covid, with families looking to reconnect in meaningful, immersive ways. Wellness tourism is another booming sector, with UHNW travelers prioritizing longevity, mindfulness, and recovery. Gastronomy-driven itineraries are also on the rise, with travellers planning entire trips around culinary experiences.

As UHNW tastes and wants evolve, the world of travel must evolve with them. The five-star bar has moved. Now it is all about one-of-a-kind access, privacy, and personalization. That could be a private museum tour with the curator, a helicopter drop onto a glacier for a gourmet lunch, or getting tickets to sold-out Paris week fashion shows. The travel industry needs to think bigger, move faster, and operate with the same precision as the clientele it's serving.

There's also a talent challenge ahead. White-glove service is not just about training - it's about mindset. As an industry, we need more people who understand the subtle art of serving without intruding, anticipating without overpromising. The demand for luxury-literate, culturally fluent, tech-savvy professionals is only going to grow.

And yet, amidst all this opulence, I believe there's a growing consciousness emerging. According to Mastercard, 38 per cent of luxury seekers in MENA are willing to pay 30–50 per cent more for sustainable features, and over 50 per cent prioritize meaningful local experiences. Sustainability is becoming increasingly important - even among the wealthiest travelers. They want their experiences to have a lower footprint, to support local communities, to give back in some way. This is not just a passing trend; it's becoming part of the luxury code. At musafir, we are currently witnessing a rise in demand for eco-luxury safaris, carbon-offset private flights, and wellness retreats.

Looking ahead, I believe the UAE is just getting started. We're not only going to cater to luxury travelers - we're going to shape the future of luxury travel globally. With bold vision and relentless innovation, we can create experiences that are not only world-class - but world-defining.

Luxury travel is no longer a fringe category - it's a driving force for both travelers who seek the exclusive, as well as for operators who want to be the top pick for UHNW customers. The UAE, with its unique blend of ambition, connectivity, and creativity, is perfectly positioned to lead this new era.

The writer is CEO & Co-founder, musafir.

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