UAE Leisure Travel Bounces Back Domestic, Asian Markets Lead, Say Top Hoteliers

(MENAFN- Khaleej Times) Leisure travel demand is returning strongly across Dubai and the wider UAE, according to senior hospitality executives, with domestic, GCC and South Asian markets driving the recovery even as some Western European source markets lag behind.

Philip M Barnes, CEO of Rotana, said the group's recovery since the crisis began at the end of February had been driven largely by domestic and GCC tourism.

Recommended For You

“Performance dipped sharply in March and April but improved from May onwards, with August results reaching 90 per cent of the same month last year – itself a record year for the group.”

Stay up to date with the latest news. Follow KT on WhatsApp Channels.

Hospitality, tourism and aviation sectors were hit after the Middle East war broke out on February 28. After the US-Israel attacks, Tehran targetted the Gulf countries with drones and missiles.

He added that early signs of leisure demand returning from Russia and Germany were emerging, though the UK, France and other Western European markets had yet to recover fully.

Barnes said full-year performance was now forecast at around 80 per cent of last year's record results, with 75 per cent of Rotana's hotels ranked first or second within their competitive sets.

With roughly half its hotel portfolio spread across the UAE and Saudi Arabia, Rotana pivoted quickly, refocusing sales and marketing on meetings, corporate, government and group segments while launching a staycation campaign targeting UAE and Saudi nationals within two weeks of the crisis breaking out.

Dubai's hotel sector delivered its strongest monthly performance in six months in August, with occupancy reaching 66 per cent, according to the latest figures released by the Dubai Department of Economy and Tourism (DET).

The occupancy rate represented 89 per cent of the levels recorded in August 2025 and marked a steep climb from the 36 per cent occupancy seen in March this year, signalling a sustained recovery in underlying demand.

Diversified demand

Manish Ahluwalia, group CEO of Phoenix Hospitality Group, also confirme that the UAE leisure tourism demand is returning after the conflict.

He pointed to strong connectivity, safety, world-class infrastructure and a diverse tourism offering as key factors reinforcing traveller confidence, with demand across the group's hotels, restaurants, nightlife and lifestyle concepts.

Ahluwalia said source markets remained well diversified, with India and South Asia, the GCC, Europe, CIS markets and the wider Mena region all continuing to contribute, a diversity he described as one of the UAE's greatest strengths.

Looking ahead, he said experiences would increasingly drive travel, with visitors seeking dining, entertainment, shopping, culture, wellness and social experiences beyond accommodation alone.

He added that both leisure and business tourism would remain important growth drivers, with Dubai's ability to combine a major leisure destination with a global business and events hub, and with“bleisure” travel – where business visitors extend stays for leisure – creating further opportunities.

Experience-led travel to drive growth

Ahmed Ben Zaied, general manager of Sharjah Collection, said the UAE's tourism sector continued to demonstrate strong potential, supported by its cultural heritage, diverse landscapes and growing destination appeal.

He said leisure tourism would increasingly be driven by demand for authentic, experience-led travel, supported by destination development, connectivity, diverse accommodation, cultural and nature-based attractions, wellness, family travel and year-round events.

Ben Zaied added tgat Sharjah's growth was underpinned by a diverse mix of domestic, regional and international source markets, with strong potential across the GCC, South Asia, Europe, CIS and Asian long-haul markets.

He said both leisure and business tourism would remain important going forward, with leisure expected to continue playing a significant role in overall growth, while business travel, MICE and corporate tourism remained key contributors – with the two segments increasingly overlapping through bleisure and experience-led business travel.

ALSO READ

GCC travel bookings rebound towards pre-war levels as confidence returns UAE tourism preparing to 'take-off' in months ahead, says minister Dubai hotels record 66% occupancy in August, highest in 6 months

MENAFN15092026000049011007ID1111669638