Dubai’s economy is demonstrating remarkable resilience and recovery, buoyed significantly by its thriving tourism sector. A new report released on Thursday by Cavendish Maxwell underscores the city’s exceptional rebound. In 2023, Dubai welcomed a record-breaking 17.15 million overnight visitors, surpassing its previous peak of 16.73 million in 2019 and 14.36 million in 2022. Furthermore, the sector’s contribution to Dubai’s GDP is anticipated to nearly double from 2021, reaching 36.1 percent this year and is expected to return to its 2019 peak by 2024.
These developments are in line with the ambitious goals set in the UAE’s National Tourism Strategy 2031, which aims to establish the nation as a top global tourism destination by 2031. The strategy envisages boosting the tourism sector’s GDP contribution by Dh450 billion, attracting investments of Dh100 billion, and annually hosting 40 million hotel guests by 2031. This strategic vision is harmoniously integrated into Dubai’s broader economic blueprint, the D33 Economic Agenda, which seeks to double the city’s economy over the next decade, enhancing its global standing in travel and business.
Dubai’s recent tourism achievements have garnered international acclaim, with the city being ranked the No. 1 global destination in the TripAdvisor Travellers’ Choice Awards 2024 for the third consecutive year. Additionally, Dubai leads regionally and places sixth globally in the World’s Best Cities Report 2024. These accolades highlight Dubai’s unwavering commitment to tourism excellence and its stature as a premier global destination. The surge in tourism has also positively impacted the city’s hospitality and real estate sectors.
Dubai’s airports continue to play a pivotal role in the city’s tourism success. Dubai International Airport (DXB) and Al Maktoum International Airport (DWC) collectively managed to surpass pre-pandemic passenger traffic levels in 2023, with DXB handling 86.9 million passengers. This figure is projected to near the 2018 record high of 89.1 million by the end of 2024.
India remained Dubai’s largest source market for overnight visitors in Q3 2023, followed by Saudi Arabia, the UK, and Russia. The city saw significant increases from China, Russia, and Germany, although visitor numbers from Saudi Arabia and Oman declined.
The hospitality industry in Dubai has been adept at adjusting supply to meet the rising demand. The first half of 2023 saw the total number of hospitality establishments in Dubai reach 813, with 148,711 keys. By year-end, this number rose to 820 establishments with 149,685 keys. The expansion continues, with 31 new hotels expected to open in 2024 and an additional 16 in 2025, bringing the total to 867 by the end of 2025.
Overall, the Dubai market has witnessed a robust recovery, with an average growth of 6.6 percent in Revenue Per Available Room (RevPAR) compared to 2022. The upscale sector enjoyed the largest average growth, around 13 percent in RevPAR.
These trends underscore Dubai’s dynamic and resilient tourism industry, playing a critical role in the city’s economic revival and setting new benchmarks in the global tourism landscape.
