UAE tourism sector continues its strong upward trajectory in 2025

The UAE tourism sector continued its strong upward trajectory in 2025, consolidating its position as one of the country’s most dynamic economic sectors and a major magnet for investment and visitors, supported by world-class infrastructure, flagship projects and strong competitiveness indicators.

Tourism and travel sector contributed Dhs257.3 billion to gross domestic product, accounting for 13 per cent of the national economy.

Hotel establishments welcomed 23.27 million guests in the first nine months of the year, up 4.9% year on year, while hotel nights exceeded 79.3 million. Hotel revenues rose 7.2% to more than Dhs 35.9 billion.

Average hotel occupancy increased to 79.2%, while the number of occupied rooms rose 3.5% to 46.17 million. The average daily room rate climbed 4.2% to Dhs 557, supported by total capacity of 216,248 rooms across 1,246 hotel establishments.

The aviation sector also maintained strong momentum, with Abu Dhabi Airports, Dubai International Airport and Sharjah International Airport handling a combined 108.59 million passengers by the end of September.

The year saw the launch and announcement of several major tourism projects, including the Dhs 2 billion “Therme Dubai” wellness and leisure destination; the opening of Abu Dhabi’s interactive Butterfly Sanctuary; the Wynn Al Marjan Island hotel and resort in Ras Al Khaimah; the Avani+ Fujairah Resort scheduled to open in 2028; the Dhs 3.5 billion Al Tay Hills project in Sharjah; the second phase of the Umm Al Qaiwain Creek Waterfront; and the announcement of a Disney theme park and resort on Yas Island, one of the largest global entertainment projects.

In February, the fifth edition of the “World’s Coolest Winter” campaign concluded under the theme “Green Tourism,” generating hotel revenues of nearly Dhs 1.9 billion, up 86.9%, and attracting more than 4.4 million guests, a 62% increase compared with the previous edition. The campaign reached 224.7 million people worldwide.

The UAE renewed its membership on the Executive Council of UN Tourism for the 2025-2029 term, underscoring its international role in shaping the future of global tourism.

In a historic milestone, Shaikha Nasser Al Nowais was elected Secretary-General of UN Tourism for the 2026-2029 term, becoming the first woman to hold the post since the organisation’s establishment.

Among other highlights in 2025, Masfout village was named “Best Tourism Village in the World 2025,” while the UAE ranked among the world’s top seven destinations for international tourism spending.

Abdulla bin Touq Al Marri, Minister of Economy & Tourism, said that hotel occupancy rates in the UAE reached 79.3 per cent during the first ten months of 2025, up from 78 per cent last year, ranking among the highest regionally and globally.

In statements to the Emirates News Agency (WAM) on the sidelines of the launch of the sixth edition of the World’s Coolest Winter campaign, the minister noted that hotel revenues totalled Dhs89 billion over the period, with 1,243 hotel establishments offering more than 216,000 rooms nationwide.

He added that tourism contributed 13 per cent to the UAE’s GDP last year, equivalent to Dhs257.3 billion, and provides over 920,000 jobs, with plans to raise the sector’s contribution to 17 per cent within five years, supported by growing investments and continued expansion in aviation.

Al Marri highlighted that the World’s Coolest Winter campaign, held under the slogan ‘Our Winter is Entrepreneurial’, aims to boost domestic tourism and support entrepreneurship, reinforcing the UAE’s position as a global destination for both tourism and business.

Tourism investments reached Dhs32.2 billion in 2024, up from Dhs 28.8 billion in 2023, and are expected to rise to Dhs35.2 billion in 2025, reflecting the sector’s strong and sustained growth.

Meanwhile, the United Arab Emirates consolidated its position in 2025 as one of the world’s fastest-growing economies, driven by strong non-oil sectors, robust foreign and domestic investment, pro-business regulation and a flexible regulatory environment.

Non-oil foreign trade rose 24.5 per cent in the first half of 2025 to Dhs1.7 trillion, around 14 times the global growth rate.

The UN Conference on Trade and Development (UNCTAD) World Investment Report 2025 ranked the UAE 10th globally for inbound foreign direct investment (FDI) in 2024, at Dhs167.6 billion.

The International Monetary Fund raised its 2025 growth forecast for the UAE to 4.8 per cent, while Fitch, Moody’s and S&P Global affirmed the country’s sovereign ratings, citing strong economic performance and sound fiscal policy.

The Central Bank of the UAE (CBUAE) data showed that gross banks’ assets increased to Dhs5,199.9 billion at the end of September 2025, with gross credit increased to Dhs2,478.8 billion during the same period.

CBUAE also launched the UAE National Financial Inclusion Strategy 2026–2030 to expand access to financial services and strengthen financial stability.

Real GDP grew 4.2 per cent year-on-year to Dhs929 billion in H1 2025. Non-oil GDP rose 5.7 per cent to Dhs720 billion, accounting for 77.5 per cent of real GDP, while oil activity contributed 22.5 per cent.

WAM