Hotels in the UAE have seen a 24% yearly rise in revenue, reaching AED 26B ($7.1B) in the first seven months of the year as the country’s tourism sector experiences a revival, as reported by the state news agency Wam, quoting the Minister of Economy.
During this period, these hotels accommodated 16 million guests, marking an increase of over 15% compared to the same period in 2022, according to Abdulla bin Touq, who also serves as the head of the Emirates Tourism Council.
A total of 56 million hotel nights were booked, and the occupancy rate increased by 5% annually to 75% from January to July, as mentioned during a Council meeting.
“These indexes contribute to increase the UAE’s competitiveness in the international tourism landscape and fulfil the national target of raising the tourism sector’s contribution to the gross domestic product to AED 450B by the next decade under the We The UAE 2031 vision,” Mr bin Touq said.
UAE Travel and Tourism to Contribute AED 180.6B in 2023
According to a report from the World Travel and Tourism Council in May, the travel and tourism industry is expected to make a contribution of AED 180.6B to the UAE’s economy this year, accounting for nearly 10% of the total.
The projection for 2023 is just 1.6% lower than the peak of AED 183.4B in 2019, as stated by the Global Tourism Organization.
In the previous year, the travel and tourism sector’s contribution to the UAE’s GDP surged by over 60%, reaching almost AED 167B, constituting 9% of the country’s economy, according to the WTTC.
In the first half of this year, Dubai’s hospitality and tourism sector achieved a record performance, surpassing pre-coronavirus levels as the number of international visitors surged.
Data from Dubai’s Department of Economy and Tourism, cited by the Dubai Media Office, revealed a 20% year-on-year increase in international visits during the January to June period.
Dubai welcomed 8.55 million international visitors, marking its best first-half performance to date and surpassing the pre-pandemic figure of 8.36 million tourists in the first half of 2019.
Abu Dhabi also has ambitious tourism goals, aiming to attract 24 million visitors in 2023, up from 18 million the previous year. The capital plans to increase the tourism sector’s contribution to its GDP from 5% to 12% by 2030.
“Emirates Tourism Council’s Vision: Driving Growth and Investment in the Tourism Sector”
The Emirates Tourism Council discussed various topics, including the implementation of the National Tourism Strategy 2031, which seeks to attract 40 million hotel guests and AED 100B in tourism investment by 2031.
It aims to boost the tourism sector’s GDP contribution to AED 450 billion by 2031 and includes initiatives to strengthen the national tourism identity, diversify products, encourage Emirati involvement, and promote investment in travel, aviation, and hospitality.
The strategy has already had a positive impact, with the “world’s coolest winter campaign” leading to a 20% annual increase in hotel revenues.
Additionally, the council formed a hospitality advisory committee to stimulate growth, enhance competitiveness, and diversify the sector.
This committee will focus on improving the UAE’s appeal for tourism investments, creating tourism initiatives, and fostering collaboration with private sector entities and hospitality companies.