UAE hotels generate record $7.1 billion in revenue in 7 Months
The UAE has been a tourism hot spot, buzzing with allure and luxury living. One key industry to note would be the hotel industry that has been buzzing with activity, with hotel establishments generating a whopping AED 26 billion (approximately $7.1 billion) in revenue during the first seven months of the year.
Yes, AED 26 billion in just seven months! This impressive figure represents a remarkable 24% increase compared to the same period last year, according to Abdullah bin Touq Al Marri, Minister of Economy and Head of the Emirates Tourism Council.
Here’s everything you need to know…
A flourishing sector
In 2023, after the real estate market flourished and many new foreign investors came to town, the UAE's hospitality sector saw a surge in visitors, hosting a staggering 16 million guests during the period under review.
This marked a remarkable growth of over 15% when compared to the number of guests in the same timeframe in 2022.
Boost in hotel rates and demand!
During these seven months, travellers booked a total of 56 million hotel nights, underlining the thriving tourism industry. Furthermore, the hotel occupancy rate reached an impressive 75% from January to July, representing a rise of 5% compared to the same period last year.
A rise in hotel establishments
The UAE has been expanding its portfolio of hotel establishments, as everyone wants to capitalise on the growing sector's demand. With the number of new hotels now reaching 1,224. This growing inventory is contributing significantly to the country's competitiveness in the international tourism landscape.
The 2031 vision
These remarkable statistics align with the national objective of increasing the tourism sector's contribution to the GDP to AED 450 billion (approximately $123 billion) by the next decade under the 'We the UAE 2031' vision.
This vision is aimed at positioning the UAE as a premier global tourism destination and encouraging a sustainable lifestyle amongst residents, with greener spaces, and sustainably built hotels.
The world’s coolest winter campaign
The Emirates Tourism Council also discussed the 'World's Coolest Winter' campaign, which has successfully promoted tourism, natural sites, and entertainment experiences across the UAE.
This campaign led to a boost in domestic tourism, with hotel establishment revenues surging to AED 1.8 billion (approximately $490 million), a 20% increase compared to its previous edition. In seven months!
Further growth and diversification
In line with international best practices, the council announced the formation of a hospitality advisory committee. This committee's purpose is to stimulate growth and enhance competitiveness in the vital hospitality sector, diversifying it and making it more appealing to investors. The committee aims to create tourism initiatives, encourage collaboration with private sector entities, and further elevate the UAE's status as a global tourism hotspot.
These achievements not only reflect the resilience of the UAE's tourism sector but also its commitment to becoming a top-tier global destination for travellers from around the world.
Curious to know more about UAE’s growing wealth?
Check out our blog on wealth predictions in the UAE here.
And until then, if you are planning to capitalise on Dubai’s incredible tourism sector boom, why not consider setting up a short-term rental home?
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Source: Arabian Business