Market Trends of UAE Hospitality Industry
Rising Tourism in the United Arab Emirates Bolsters the Growth Hospitality Sector
The economic upturn of the previous year and the commencement of major projects in Dubai has paved the way for strong tourism growth in 2022, setting Dubai on the path to achieving its growth goals over the long term. The year started with a bang for the tourism industry in the United Arab Emirates, as Dubai was named the world's best-traveled destination at the top of the leaderboard at Tripadvisor Travelers' Choice Best of the best destination awards 2023. The share of GDP to the tourism sector reached 10.14% in the first half of 2023.
Tourism continues to be at the heart of Dubai's development strategy and is expected to play a significant role in the Dubai Economic Plan D33. The United Arab Emirates (UAE) has established itself as a world-class tourism destination, drawing in millions of visitors each year due to its dedication to innovation and development.
Luxury Hotel Segment Dominates the Hospitality Industry in UAE
The United Arab Emirates, the tourism capital of the Gulf States, is famous for its glitter and glamour. The place is being visited by people from all over the world looking for luxury and a luxurious lifestyle.
Revenue from Luxury hotels drives with largest share in the current year. For the next few years, more than 130 premium sites with nearly 34,000 rooms are expected to be opened in the country's top-end hotel sector. The country's reputation for luxury remains undimmed as far as forthcoming hotels go, with 64% of the high-end pipeline in the five-star category, equating to 83 sites.
With 68 properties to be completed this year, 52% of the premium pipeline is dominated by a trend toward more rapid delivery. There will be a significant cut in prices to come, starting with 27 sites opening in 2024, followed by just seven and five in 2025 and 2026. There are 23 projects without a delivery date or planned to open after 2026.
One of the most important developments in Dubai is The Heart of Europe, a self-sufficient luxury resort situated six kilometers out into the sea among the World Islands. Sixteen hotels and holiday resorts inspired by major European cities will form part of this new precinct developed by the Kleindienst Group.
