UAE tourism sector eyes 40m guests, Dh100b new investments by 2031

The UAE seeks to attract new investment to the tune of Dh100 billion to the tourism sector and welcome 40 million guests to the country's hotels by 2031, a senior government official has said.

Khaled Al Midfa, chairman of Sharjah Commerce and Tourism Development Authority, said the country’s tourism sector contributed Dh220 billion to the gross domestic product in 2023, accounting for 11.7 per cent of the overall economy. This upward trend is expected to continue in 2024, with projections indicating the sector will reach Dh236 billion and account for an even greater share of the GDP at 12 per cent. The UAE’s Tourism Strategy seeks to raise the sector's contribution to the country's GDP to Dh450 billion by 2031, said Al Midfa, who led a UAE delegation to the UN Tourism 50th Regional Commission Meeting for the Middle East in Muscat.

Industry experts said the upcoming unified GCC visa would allow member nations to present the region as a connected destination, boosting accessibility and driving KPIs such as length of stay, average spend and employment. Current and future infrastructure will complement the Unified Tourist Visa by enhancing accessibility within and between Gulf nations. In addition to ongoing investment in new and existing airports and cruise terminals, the upcoming GCC Railway will play a central role in facilitating and optimising region-wide access for both domestic and international visitors, they said.

The number of jobs the booming sector creates is expected to reach 833,000 in 2024. There are currently 1,235 hotels in the UAE providing a total of 210,000 rooms.

The World Travel & Tourism Council’s 2024 Economic Impact Research report said jobs supported by the UAE tourism sector grew by 41,000 to reach more than 809,000, representing one in nine jobs in the country. While domestic visitor spending fully recovered in 2022, it continued to grow in 2023 to reach more than Dh 55.5 billon which is almost 40 per cent higher than 2019. International visitor spending surged by almost 40 per cent in 2023 to reach over Dh175 billion, 12 per cent above 2019 levels, reflecting the UAE’s enduring appeal as a top global tourism destination.

The report ranks 119 economies based on a set of factors, and the index consists of five sub-indices, including the enabling environment, travel and tourism policy and infrastructure, infrastructure and services, travel and tourism resources such as nature and culture, and the sustainability of the travel and tourism sector.