UAE travel and tourism industry is projected to rebound to pre-pandemic levels this year, as per the 2023 Economic Impact Research by the World Travel and Tourism Council (WTTC).
The UAE travel sector is expected to contribute approximately AED 180.6B ($49B) to the UAE economy by the end of 2023, coming close to the previous high of AED 183.4B ($50B) recorded in 2019, representing a mere 1.5 percent decline from pre-pandemic levels. This robust performance accounts for nearly 10 percent of the total UAE economy.
Furthermore, the WTTC predicts a tourism boom in the UAE, with the sector creating over 7,000 jobs this year. This would surpass the pre-pandemic peak of 745,100 jobs, reaching a total employment figure of over 758,000 in various travel and tourism roles.
In 2022, the travel and tourism industry’s contribution to GDP witnessed significant growth, surpassing 60 percent to reach nearly AED 167B, constituting 9 percent of the country’s overall economy.
Moreover, the sector generated more than 89,000 additional jobs compared to the previous year, surpassing 2019 levels by an additional 6,000 jobs, and reaching a national total of over 751,000 jobs.
In 2022, the UAE witnessed a resurgence of international travelers, with key markets including India (13%), Oman (8%), Saudi Arabia (8%), and the UK (7%) leading the way in terms of visitor arrivals.
According to the available data, international visitors made a significant contribution of AED 117.6B to the national economy in 2022. This marked a notable year-on-year growth of 65.3 percent. However, despite the positive growth, the figure remained 19 percent below the levels seen in 2019, before the pandemic took hold.
Regarding domestic spending, 2022 experienced a substantial increase of 35.7 percent compared to the previous year. Domestic expenditure reached AED 46.9 billion, surpassing its pre-pandemic equivalent by 10.6 percent.
Julia Simpson, WTTC President and CEO, said: “The national Travel and Tourism sector is recovering at a rapid pace, proving the UAE continues to grow in popularity among international travellers. The UAE is home to one of the world’s busiest and successful airports, Dubai International, which acts as a gateway to the Middle East.”
“The future for the sector looks positive. By the end of this year, the sector’s contribution will level that of 2019, and over the next decade, growth will outstrip the national GDP and create more than 114,000 new jobs, representing one in nine jobs.”
“Our recent Cities EIR Report highlighted the appeal tourist destinations across the country, such as Dubai and Abu Dhabi, continue to hold for international travellers. These cities have shown an incredible resilience and strong leadership.”
The World Travel and Tourism Council (WTTC) predicts that the UAE’s travel and tourism sector will witness substantial growth, with its GDP contribution projected to reach AED 235.5B ($64B) by 2033. This would represent 10.2 percent of the UAE’s total economy.
Over the next ten years, the travel and tourism industry is expected to employ over 872,000 individuals across the country, accounting for nearly 12 percent of all jobs.
In 2022, the Middle East’s travel and tourism sector contributed over AED 1.2T ($327B) to the regional economy. Although this figure is 25.3 percent lower than the peak recorded in 2019, WTTC forecasts that by the end of this year, the sector’s GDP contribution will exceed AED 1.5T ($413.2B), coming close to the 2019 high.
According to WTTC’s Economic Impact Report, the travel and tourism sector employed over 6.8 million people in the region last year, representing an increase of 865,000 compared to the previous year. However, this figure still remained 8.7 percent lower than the peak observed in 2019.
The sector is expected to recover most of the jobs lost during the pandemic by the end of this year, with only a 2 percent gap from pre-pandemic levels.
Over the next decade, the travel and tourism industry is projected to make a substantial contribution of nearly AED 2.5T ($681B) and provide employment opportunities for more than 9.8 million people.
