Hospitality in the UAE Continues Steady Growth Through 2025
The hospitality sector in the UAE is experiencing steady growth in 2025, reinforcing the country’s position as a global destination for visitors. This sector is characterized by a coordinated economic and tourism vision, achieving exceptional revenues while providing a high-quality tourism experience. In the first quarter of 2025, hotel establishments recorded revenues of approximately 13.5 billion dirhams, welcoming over 8.4 million guests, reflecting balanced growth in hospitality in the UAE alongside qualitative innovation.
Sector Performance in the First Quarter of 2025
In the first quarter of 2025, the UAE attracted more than 6.7 million international visitors, with Dubai alone recording 5.31 million visitors, a 3% increase compared to the same period last year. Abu Dhabi welcomed 1.4 million international visitors. This strong performance reflects the government’s efforts in implementing the “Tourism Strategy 2031,” which aims to attract 40 million hotel guests annually and increase the tourism sector’s contribution to GDP.
Deliberate Expansion of Hotel Establishments
The hospitality sector in the UAE continues to make significant progress, with the number of hotel establishments reaching approximately 1,251 by the end of 2024, totaling 216,966 hotel rooms. This expansion achieved a growth rate of nearly 3% compared to 2023, indicating a balance in supply and demand without affecting occupancy rates. In 2024, the hospitality sector generated revenues of 45 billion dirhams, with an impressive average occupancy rate of 78%. These figures indicate the market’s maturity and its ability to manage expansion effectively.
New Innovations in Hospitality
As development continues, the UAE is currently witnessing the creation of over 15,900 new hotel rooms, most of which are expected to be operational between 2025 and 2026. This expansion focuses on hotel concepts that combine luxury, sustainability, and modern technologies. The number of hotels in the country is expected to reach between 1,280 and 1,300 by the end of 2025, increasing the total number of rooms to around 221,000. Dubai is set to lead in this area, with the number of rooms projected to be around 156,000 by the end of 2025.
Today, the hospitality sector in the UAE is supported by several advantages, including the country’s development as a global business hub and a diverse range of events, enhancing its appeal as a global hospitality center. This dynamic fosters innovation and offers unforgettable tourism experiences, positioning the UAE’s hospitality sector prominently on both regional and global levels.