Market Size of UAE Hospitality Industry
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 7.37 Billion |
| Market Size (2029) | USD 9.46 Billion |
| CAGR (2024 - 2029) | 5.12 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
UAE Hospitality Market Analysis
The UAE Hospitality Market size is estimated at USD 7.37 billion in 2024, and is expected to reach USD 9.46 billion by 2029, growing at a CAGR of 5.12% during the forecast period (2024-2029).
One of the country's largest sources of non-oil income is the tourism industry, which is reflected in the country's hotel supply. The UAE has been successful as a leading global destination for both leisure and business travelers, which has undoubtedly positively impacted the country's hospitality sector.
The UAE’s attractiveness as a global travel destination has been further enhanced by its geopolitical stability, world-class infrastructure, and commitment to hosting international events. These factors drive the growth of the tourism industry and, as a result, keep the hospitality industry robust.
UAE’s domestic tourism has shown remarkable resilience and strength, and have noticed an increasing preference for staycations among UAE residents. This preference for staycation is driven by several factors, including convenience, safety, and the opportunity to discover hidden gems within the UAE.
UAE Hospitality Industry Segmentation
The term "hospitality" refers to the relationship between a host and a guest in which the host accords the guest with some goodwill. This includes welcoming and entertaining guests, visitors, or strangers. A complete background analysis of the hospitality industry in the united arab emirates, which includes an assessment of the industry associations, overall economy, and emerging market trends by segments, significant changes in the market dynamics, and market overview, is covered in the report.
The UAE hospitality market is segmented by type and segment. By type, the market is sub-segmented into chain hotels and independent hotels. By segment, the market is sub-segmented into service apartments, budget, and economy hotels, mid and upper-mid-scale hotels, and luxury hotels. The report offers market size and forecasts for the hospitality industry in the United Arab Emirates in value (USD) for all the above segments.
| By Type | |
| Chain Hotels | |
| Independent Hotels |
| By Segment | |
| Service Apartments | |
| Budget and Economy Hotels | |
| Mid and Upper mid scale Hotels | |
| Luxury Hotels |
UAE Hospitality Market Size Summary
The hospitality industry in the United Arab Emirates is a significant contributor to the country's economy, with tourism being a major source of non-oil income. The UAE has established itself as a premier global destination for both leisure and business travelers, benefiting from its geopolitical stability, world-class infrastructure, and a commitment to hosting international events. These factors have bolstered the growth of the tourism sector, which in turn has strengthened the hospitality industry. The domestic tourism market has also shown resilience, with a growing trend of staycations among residents, driven by convenience and the opportunity to explore local attractions.
Dubai, in particular, has been a focal point for tourism growth, with the city being recognized as a top travel destination globally. The tourism sector's contribution to Dubai's GDP underscores its importance in the city's economic strategy. The UAE's hospitality market is characterized by a robust pipeline of luxury hotels, with numerous high-end properties set to open in the coming years. This growth is supported by both international hospitality giants and strong domestic groups, offering ample opportunities for new entrants. The market continues to evolve with new developments and expansions, reflecting the UAE's ongoing commitment to enhancing its status as a leading tourism and hospitality hub.
UAE Hospitality Market Size - Table of Contents
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1. MARKET INSIGHTS AND DYNAMICS
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1.1 Market Overview
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1.2 Market Drivers
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1.2.1 Rising Tourism in the United Arab Emirates Bolsters the Growth in Hospitality Sector
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1.2.2 The Rise in the Mice Industry in the United Arab Emirates Drives the Hospitality Sector
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1.3 Market Restraints
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1.3.1 High Rentals in the United Arab Emirates Pose a Restraint to the Hospitality Sector
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1.4 Market Opportunities
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1.5 Value Chain/Supply Chain Analysis
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1.6 Industry Attractiveness: Porter's Five Forces Analysis
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1.6.1 Bargaining Power of Buyers
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1.6.2 Bargaining Power of Suppliers
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1.6.3 Threat of New Entrants
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1.6.4 Threat of Substitutes
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1.6.5 Intensity of Competitive Rivalry
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1.7 Insights on Revenue Flow From the Accommodation and Food and Beverage Sector
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1.8 Leading Cities In United Arab Emirates With Respect to the Number of Visitors
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1.9 Investments (Real Estate, Fdi, and Others) In the Hospitality Industry
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1.10 Technological Innovations In the Hospitality Industry
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1.11 Insights on Shared Living Spaces Impact on the Hospitality Industry
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1.12 Insights on Other Economic Contributors to the Hospitality Industry
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1.13 Impact of Covid-19 on Hospitality Industry
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2. MARKET SEGMENTATION
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2.1 By Type
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2.1.1 Chain Hotels
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2.1.2 Independent Hotels
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2.2 By Segment
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2.2.1 Service Apartments
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2.2.2 Budget and Economy Hotels
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2.2.3 Mid and Upper mid scale Hotels
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2.2.4 Luxury Hotels
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UAE Hospitality Market Size FAQs
How big is the UAE Hospitality Market?
The UAE Hospitality Market size is expected to reach USD 7.37 billion in 2024 and grow at a CAGR of 5.12% to reach USD 9.46 billion by 2029.
What is the current UAE Hospitality Market size?
In 2024, the UAE Hospitality Market size is expected to reach USD 7.37 billion.
