Today's Edition
MAYS IBRAHIM (ABU DHABI)
As of mid-2024, the UAE stands as the largest hospitality market within the Gulf Cooperation Council (GCC), boasting an impressive inventory of 212,000 quality hotel rooms, according to the GCC Hospitality Market Review – 2024 by Knight Frank. Dubai boasts a substantial share of this total, with 154,000 rooms. The report projects a 10% increase in the hotel room supply in the UAE by 2026, with the total expected to reach 232,000 keys, provided that ongoing construction projects are completed as planned.
UAE: Highest Occupancy Rate in Region
The report indicates that the GCC's hospitality landscape is thriving, with 2023 marking significant contributions from the travel and tourism sector to the region's economy and employment rates.
The travel and tourism sector added approximately $223.4 billion to the GCC's GDP in 2023, reflecting a robust recovery from the pandemic, according to the World Travel and Tourism Council (WTTC). During the same period, tourist spending in the GCC reached $135.5 billion, and the region welcomed 76.2 million tourists.
"These figures demonstrate the resilience and significance of the tourism sector in the GCC, driven by strategic government initiatives and investments aimed at boosting tourism and enhancing the region's appeal as a premier global destination," the report stated.
Between January and May 2024, the UAE emerged as a standout performer in the GCC's hospitality sector, with an average hotel occupancy rate of 80%, the highest in the region.
This figure was matched by Revenue Per Available Room (RevPAR) levels of $155, according to the report. "These results highlight the UAE's continued dominance and attractiveness as a premier destination for both leisure and business travellers."
Tourist arrivals across the GCC continued trending upward in 2023. The UAE and Saudi Arabia emerged as the 12th and 13th most visited countries globally, attracting 28 million and 27.4 million visitors, respectively. Qatar also saw a notable increase in tourist arrivals, from 2.6 million in 2022 to over 4 million in 2023.
The GCC's hotel stock stood at 464,465 quality rooms by the end of June 2024, with the UAE holding 46% of this total and Saudi Arabia 34%. With ongoing projects, the GCC's hotel supply is expected to expand by 17% to 544,250 rooms by 2026.
Exceptional Growth Supported by Government Initiatives
The report noted that the UAE's hospitality sector showed exceptional growth in 2023, contributing a record-breaking Dh219 billion to the country's GDP, or 11.7% of economic output.
Additionally, the number of jobs supported by the sector increased by 41,000, reaching over 809,000 jobs, up by 5.3% compared to 2022 and accounting for one in nine jobs in the country. International visitor spending surged by nearly 40%, exceeding Dh175 billion, highlighting the UAE's growing status as a premier global tourism destination.
According to Knight Frank, government initiatives have played a crucial role in this growth, with long-term residency visas for investors and skilled professionals, expanded tourism infrastructure, and a strategic promotion of the UAE as a world-class destination.
Its report pointed out that this appeal is bolstered by the UAE's robust airline industry, including major carriers such as Emirates, Etihad, and Air Arabia, alongside low-cost carrier Fly Dubai.
