Dubai: The UAE’s travel and tourism sector is gearing up for another bumper year, driven by growing demand among tourists for longer stays and more immersive experiences – all of which the UAE is well placed to provide, according to industry experts.
Buoyed by investments in the hospitality sector and the opening of several new hotels and attractions, experts have said the UAE is also well-placed to achieve its strategic goal of welcoming 40 million hotel guests by 2031.
“Many travellers are now choosing longer seven to ten-day holidays. Inbound visitors are staying in the UAE longer as well. This is more so the case because business travellers are combining their work trips with leisure holidays,” according to Raheesh Babu, COO of Musafir.com, an online travel agency. “Moreover, travellers are booking for their summer holidays months in advance. The frequency of travel has also witnessed a significant uptick, with travellers opting for multiple trips annually.” This goes for both inbound and outbound travel.
New hotels
On the hospitality front, at least 14 new hotel openings are expected to take place this year, from Jumeirah Marsa Al Arab to Five Luxe. According to the Hotel Monitor, 2024 report by American Express Global Business Travel (Amex GBT), hotel room rates are expected to increase by 10 percent in Dubai.
Dubai is at the forefront of the regional hospitality market with a robust outlook for 2024. The city now surpasses major capitals like London, New York City, and Bangkok in hotel room availability, boasting over 150,000 hotel rooms as of this month, according to Danielle Curtis, Exhibition Director ME, Arabian Travel Market (ATM)
The optimism from hospitality leaders comes ahead of the 30th edition of the ATM, set to begin on Monday, May 6. Over 41,000 visitors are expected to participate this year.
Demand to remain robust
Dubai Airports CEO Paul Griffiths predicts that travel demand will remain robust for the foreseeable future. “I am very optimistic that passenger demand will continue to surprise us every time we revise the forecast. It is always in the upward direction. So, I think that is going to be a phenomenon that we will have to live with for quite a long time,” said Griffiths.
In 2023, Dubai International Airport (DXB) remained the busiest international hub for passengers for the 10th year in a row, according to preliminary data from the Airports Council International (ACI). DXB saw a surge in long-distance travel demand, handling 86.9 million passengers, marking a 31.7 per cent increase from the year before.
Major contributor to GDP
“Last year, the UAE exceeded the 2019 numbers (contribution to GDP) by a quarter. It was 25 per cent bigger than in 2019. That is a massive leap and probably one of the biggest in the world. This year, in 2024, we predict that travel and tourism will represent 12 percent of UAE’s GDP, and it is going to be worth Dh236.4 billion,” said Julia Simpson, President and CEO of the World Travel and Tourism Council.
She said, “The sector will employ 832,900 people this year. That means over 12 percent of the employable population will be in travel and tourism. In 10 years, there will be a million jobs in travel and tourism, and the sector is likely to be worth Dh275 billion.”
The WTTC chief said international visitors account for nearly 75 per cent, or three-quarters, of all spending within the sector.
“If you look at leisure versus business spending, you can see that leisure is very strong. About 83 per cent of all spending comes from leisure visitors,” she explained.
International visitor spending is forecasted to grow by nearly 10 per cent, reaching Dh192 billion, while domestic visitor spending is expected to increase by 4.3 per cent to reach almost Dh58 billion. Julia explained, “The UAE's travel and tourism sector has not only recovered; it soared to new heights, establishing itself as a cornerstone of the nation's economic landscape.”
UAE’s strategy also aims to raise the tourism sector’s contribution to the GDP to Dh450 billion, with an annual increase of Dh27 billion, and attract new investments of Dh100 billion to the sector in the country.
FAQs
Dubai: The UAE's travel and tourism sector is gearing up for another bumper year, driven by growing demand among tourists for longer stays and more immersive experiences – all of which the UAE is well placed to provide, according to industry experts.
What is ATM 2024? ›
ATM 2024 is part of Arabian Travel Week, a ten-day-long festival of travel and tourism events that take place in Dubai. In addition to ATM, other events that are part of Arabian Travel Week are the ATM Start-up competition, ATM Travel Tech, GBTA Business Travel Forums and Buyer Networking.
What is the contribution of the travel and tourism sector to the UAE's GDP? ›
The Contribution of the Travel and Tourism Sector to the UAE's GDP. In 2022 , the contribution of the travel and tourism sector to the UAE's GDP was nearly AED 167 billion which is equivalent to 9% of the total GDP.
What is the tourism forecast for the UAE? ›
It is forecast to rise by 5.1% per annum from 2017 to 2027 to AED 116.1 billion (USD 31.6 billion), which would be equivalent to 5.4% of the total GDP in 2027. The total contribution of the travel and tourism sector to the UAE's GDP was AED 159.1 billion (USD 43.3 billion), which is 12.1% of its GDP.
What percentage of the UAE's economy is tourism? ›
“According to the World Travel & Tourism Council (WTTC), our tourism sector has been a dynamic force within our economy, contributing an impressive 11.7 percent to GDP (in 2023), amounting to AED220 billion,” Al Marri said.
What is the new ATM rule? ›
As per the updated regulations from the RBI (Reserve Bank of India), with effect from 1st January 2022, users of most banks can withdraw cash from ATM five times per month. These five transactions are inclusive of both financial and non-financial (balance inquiry, mini statements etc.) services at any ATM.
What will be the future of ATM? ›
Increasingly ATM manufacturers are developing multi-functional ATMs that can help patrons pay bills, fund transfers, exchange currencies – even charge a mobile phone – and video conference with a live teller as needed. Such ATMs are future driven and transformational for both banks and customers.
Why is UAE good for tourism? ›
Rich Cultural Heritage:
The UAE is a melting pot of cultures and traditions, with a rich history and heritage. Tourists can visit historical sites, museums, and cultural festivals to learn more about the country's past and present.
How does the UAE promote tourism? ›
supporting the growth of tourism industries. attracting tourism investments. suggesting economic incentives to encourage the growth of the sector. establishing a comprehensive national tourism information database.
Is Dubai making money from tourism? ›
The Importance of Oil and Tourism
The city has cleverly used its oil wealth to strengthen other sectors of its economy, such as trade and tourism. Today, an astounding 95% of Dubai's GDP isn't oil-based. Tourism alone generates 20% of the GDP. Trade continues to be a crucial part of Dubai's economy.
The travel trends of 2024 in the UAE reflect a blend of sustainability, wellness, culture, and adventure. Whether you're a foodie, a thrill-seeker, or a culture enthusiast, the UAE offers something unique for every traveller.
Is Dubai named as the world's most popular travel destination for 2024? ›
Dubai has secured the top spot as the No. 1 global destination in the Tripadvisor Travellers' Choice Best of the Best Destinations Awards 2024 for the third consecutive year, making it the first city to achieve this remarkable milestone in succession.
When did tourism become more popular in UAE? ›
Since 1982, Dubai continued to be one of the fastest growing destinations for tourists. In 2002, visitors were mainly from other Gulf Cooperation Council members which accounted for 34% of tourists, South Asia accounted for 25%, other Arab states 16%, Europe 15%, and Africa 9%.
What is the poverty rate in Dubai? ›
STAR RATINGS
The poverty rate, defined as a daily income of less than 80 dirhams ($22) is 19.5%. 98.13% (95.8% for women, 92.56% for men). Unlike Emirati citizens, children of expats are not entitled to free schooling.
Does Dubai make more money from tourism than oil? ›
So far, oil has accounted for less than 1% of Dubai's GDP and tourism to produce 20% of the GDP. These figures explain why Dubai has become a more dynamic and diversified economy to survive the decline of fossil fuels.
What is the main source of income in the UAE? ›
The UAE economy is heavily reliant on revenues from petroleum and natural gas, especially in Abu Dhabi.
What is ATM in aviation terms? ›
Air Traffic Management (ATM)
What else can ATM stand for? ›
ATM in English has two very common meanings. The first meaning of ATM shorthand is "At The Moment". This is used in informal writing, such as instant messaging online or text messaging. The second common meaning of ATM is "Automated Teller Machine".
What does ATM mean in aviation? ›
'Air traffic management (ATM)' means the aggregation of the airborne and ground-based functions (air traffic services, airspace management and air traffic flow management) required to ensure the safe and efficient movement of aircraft during all phases of operations; Last updated.
What does ATM stand for in real estate? ›
An at-the-market (ATM) offering is a type of follow-on offering of stock utilized by publicly traded companies in order to raise capital over time.
