Hospitality Industry in UAE Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

Hospitality Industry in UAE Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)
The UAE Hospitality Market size is expected to grow from USD 470.50 million in 2023 to USD 499.42 million by 2028, at a CAGR of 1.20% during the forecast period (2023-2028). The United Arab Emirates is one of the key countries in the Gulf region which has been contributing a major share to the hospitality industry. The closure of the international borders due to the COVID-19 pandemic for a longer period resulted in a sudden drop in the number of revenues generated from the industry. However, the country's strategic location, fast-growing world-class airlines, improved transportation infrastructure have helped the country to grow fastly during the study period(except 2020 due to pandemic). Two-thirds of the world's population lives within an 8-hour flight distance from the United Arab Emirates and International airlines like Emirates and Etihad Airways which are offering best-in-class international travel are becoming major drivers for the growth of the tourism sector in the country. Over the past decade, through strengthening these sectors the country experienced rapid and sustained growth. The Leisure facilities have become a key component of the United Arab Emirate's economic diversification strategy and helped the country to attract international hospitality giants like Marriott International, Hyatt, and Hilton. Meanwhile, the domestic brands DAMAC, Emaar, Jumeirah hospitality groups expanded rapidly in the country. During the 2007 – 2017 decade, the tourism and hospitality sector experienced strong growth and its direct contribution was increased by 138% to the country's gross domestic product with sectoral employment growing by 119% over the same period. Dubai Expo which was primarily scheduled for 2020 was postponed to 2021 due to COVID – 19 pandemic is expected to bring even more investors to the country.UAE Hospitality Market TrendsHigh ADR Value is Attracting More Investments With the government’s initiatives in implementing proactive policies to stimulate demand for the region and to increase the growth of visitors by relaxing its visa regulations for key source markets have benefited the region to record growing key performance indicators. The hotels of different segments from budget and economy class to luxury have registered around 70% occupancy rates during 2015 – 2018 in the United Arab Emirates followed by an average 10-year revenue per available room at USD 97 during the past four years. The average revenue of hotels in Dubai registered USD 201 during the past decade followed by Abu Dhabi with USD 165 and the Northern Emirates with USD 114 making the country average revenue USD 137.Increasing Leisure Tourism to the Country is Driving the Hospitality Industry Dubai Tourism Commerce & Marketing (DTCM), announced that Dubai welcomed 15.92 million overnight visitors during 2018. Mastercard Global Destination Cities Index revealed that Dubai recorded the highest spend per visitor globally during 2018. With the increasing global tourism, the great shopping experience and entertainment facilities that the United Arab Emirates offers has created its own significance as a premier tourism and leisure destination in the world. Recently opened Warner Bro’s World in Abu Dhabi, Sea World, Guggenheim, the under-construction Six Flags Dubai are a few to name that are forecasted to attract a large number of visitors to the country.UAE Hospitality Industry Overview The hospitality industry in the United Arab Emirates holds a great scope for newcomers to enter. One of the American hospitality giant Marriott established a strong base in the country with more than 55 hotels that are spread across all the major cities of the region and are offering around 16,000 rooms/keys to the supply. The market is also dominated by many domestic hospitality groups like Jumeirah Group, DAMAC Group, Emmar Hospitality which are spread across Dubai, Abu Dhabi, Fujairah, Ras Al Khaimah, Sharjah, and Ajman.Additional Benefits: The market estimate (ME) sheet in Excel format 3 months of analyst support