Though the United Arab Emirates is a major oil-producing country, the Emirati government has a clear vision to diversify its economy and balance its dependency on different sectors. The tourism industry has established itself as a major amplifier of economic divergence. It has been projected that the
about 62.8 billion U.S. dollars to the UAE’s GDP by 2028.
UAE tourism overview
The UAE has already established itself as a
leading tourist destination in the Middle Eastern region, exceeding 25 million international tourist arrivals at its peak in 2019 before the COVID-19 outbreak. In the UAE, the tourism and hospitality sector has established itself as a significant source of employment. Employment in the travel and tourism industry in the UAE was projected to reach nearly 400 thousand by 2028.
Prior to the pandemic, the share of Dubai’s
contribution to the country’s tourism GDP was the highest among all Middle East and North African cities.
Inbound tourism expenditure as a share of outbound tourism expenditure in the UAE fell after the COVID-19 outbreak by almost 50 percent. However, strong signs of recovery in the UAE’s tourism industry are evident in its improving hospitality indicators. The
occupancy rate of hotel rooms in the UAE in 2022 were returning to pre-pandemic benchmarks.
Luxury leading UAE’s tourism
One of the main development focus areas for the travel and tourism industry in the UAE is the hotel sector. With more than 150 luxury hotels, the UAE is home to more than 46 percent of the
Gulf Cooperation Council (GCC) region’s luxury hotel supply. The emirate of Dubai is specifically known for its luxury hotels, upscale buildings, and resorts. The
occupancy rate of five-star hotels in Dubai in 2022 stood at 70 percent. With about 83 percent of the
room supply of the UAE’s pipeline hotel projects between 2023 and 2028 categorized as luxury, upper-upscale, and upscale hotels, the UAE is expected to sustain the growth of its luxury tourism sector.
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