UAE Tourism Growth Lifts Occupancy And Revenues

(MENAFN- The Arabian Post) Arabian Post Staff -Dubai

Hotel occupancy across the UAE climbed to 79.3 per cent during the first ten months of 2025, underlining the sector's sustained momentum as visitor flows, air connectivity and investment continue to reinforce the country's position as a global tourism hub. The figure marks an increase from 78 per cent a year earlier and places the UAE among the strongest performers both regionally and internationally.

Speaking on the sidelines of the launch of the sixth edition of the World's Coolest Winter campaign, Abdulla bin Touq Al Marri, Minister of Economy & Tourism, said the rise in occupancy was accompanied by a sharp increase in earnings, with hotel revenues reaching AED89 billion over the same period. The country now hosts 1,243 hotel establishments offering more than 216,000 rooms nationwide, reflecting steady expansion across established cities and emerging destinations.

Tourism momentum strengthens the UAE economy, the minister said, highlighting the sector's growing role as a pillar of diversification. Tourism accounted for 13 per cent of national GDP last year, equivalent to AED257.3 billion, and supports more than 920,000 jobs across hospitality, transport, retail, culture and related services. Official plans aim to lift the sector's contribution to 17 per cent within five years, a target backed by rising private investment, infrastructure spending and aviation growth.

Industry executives say the higher occupancy rate reflects a combination of factors rather than a single driver. A diversified source mix of visitors, expanded air routes, visa facilitation measures and a packed calendar of leisure, business and cultural events have helped smooth seasonality and sustain demand across the year. The UAE's ability to attract both high-spending leisure travellers and large volumes of business visitors has also insulated the sector from volatility seen in some competing markets.

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Hotel operators report that performance gains have been broad-based, spanning luxury resorts, city business hotels and mid-market properties. While premium beachfront and desert resorts continue to benefit from strong international demand, urban centres such as Dubai and Abu Dhabi have seen solid weekday occupancy supported by conferences, exhibitions and corporate travel. Secondary destinations have also recorded gains as domestic tourism and regional short breaks expand.

Aviation remains central to the growth story. Continued capacity expansion by major carriers, combined with route additions by international airlines, has widened access from Europe, Asia, Africa and the Americas. Sector analysts note that seat capacity growth has kept pace with rising visitor numbers, helping prevent bottlenecks during peak travel periods while supporting competitive pricing.

Investment trends point to further capacity growth over the medium term. Developers are advancing new hotel projects alongside mixed-use tourism districts, while operators are refurbishing existing properties to meet evolving traveller preferences. Sustainability features, wellness offerings and technology-enabled services are increasingly shaping new developments as guests demand higher standards and personalised experiences.

The World's Coolest Winter campaign, now in its sixth edition, has become a flagship initiative to promote the country's diverse attractions during the cooler months. Officials say the campaign aligns marketing, events and private-sector participation to encourage longer stays and repeat visits. Retail festivals, outdoor activities and cultural programming have played a role in spreading visitor spending beyond traditional hotspots.

Employment impacts remain a key policy focus. With tourism already supporting more than 920,000 jobs, expansion plans are expected to generate further opportunities across hospitality operations, food services, entertainment, logistics and creative industries. Training programmes and partnerships with educational institutions aim to equip the workforce with skills needed for a more service-intensive, digitally enabled sector.

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Economists view the tourism push as integral to broader economic strategy. By increasing the sector's GDP share to 17 per cent within five years, policymakers aim to deepen non-oil revenue streams and enhance resilience against external shocks. Strong linkages with aviation, real estate, retail and financial services amplify the multiplier effects of tourism spending across the economy.

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