In 2025, the UAE’s tourism industry recorded its strongest economic performance to date, contributing about $70bn to the economy and making up roughly 14 per cent of GDP, reinforcing its position as a core pillar of national growth and diversification.
Tourism demand remained resilient throughout the year, with hotel guest numbers increasing by nearly 5 per cent year on year to around 23 million in the first nine months of 2025, a new record. Occupancy levels stayed close to 80 per cent despite ongoing global economic pressures.
Farhan Badami, market analyst at eToro, said the sustained momentum in tourism is having far-reaching effects on both domestic and international markets.
He noted that tourism is not only driving economic expansion in the UAE but also underpinning a wide range of industries and listed companies, with airlines, hotel operators and travel platforms all benefiting from rising visitor numbers.
Globally, this strength is already visible in travel and leisure stocks, with companies such as Expedia, Booking.com, Trip.com and Hilton reporting solid gains as international travel demand continues to hold firm.
Within the UAE, tourism is also acting as a powerful economic multiplier. Growth in visitor numbers is supporting activity across sectors including retail, transportation and real estate, improving earnings prospects and overall market sentiment.
Badami added that tourism plays a crucial role in advancing the UAE’s long-term diversification goals, helping to reduce reliance on hydrocarbons while boosting consumer spending and property markets, supported by world-class infrastructure and the country’s role as a global aviation hub.
Despite concerns that tighter global economic conditions could dampen discretionary travel, the UAE’s ability to attract record visitor numbers highlights its competitive strength as both a leisure and business destination.
Locally listed companies are also benefiting, with developers such as Emaar and Aldar seeing higher footfall across malls, hotels and lifestyle assets, while airlines including Air Arabia gain from expanding regional connectivity and growing travel demand.
Looking ahead, Badami said tourism is expected to remain a key engine of growth, with the sector likely to continue generating investment opportunities locally and globally as the UAE moves into 2026, supporting confidence in the country’s economic outlook.
