Hospitality sector continues to achieve advanced growth rates in UAE: Minister

Gulf Today, staff reporter

The Hospitality Advisory Council held its first meeting of 2026, chaired by Abdulla Bin Touq Al Marri, Minister of Economy and Tourism, and attended by representatives from the public and private sectors, including executives and heads of major national and international hotel establishments in the UAE.

The Council reviewed a range of new tourism initiatives and their pivotal role in driving the growth and sustainability of the UAE’s hotel sector in 2026. Discussions also covered performance developments in the sector regionally and globally, along with future supply and demand projections for the upcoming period.

Bin Touq affirmed that the UAE’s hospitality sector continues to perform exceptionally, thanks to the vision and directives of the wise leadership. The sector is one of the key pillars enhancing the competitiveness of the national tourism ecosystem, he noted.

Hotel occupancy reaches 79.5 per cent he emphasised that the hotel occupancy rate in the UAE reached 79.5 per cent during the period from January to November 2025, along with an increase in the average length of stay to 3.42 nights. Coinciding with the continued expansion of the sector’s capacity, the number of hotels reached 1,260, while the total number of hotel rooms increased to around 216,900. These figures reflect the robustness of the sector and its pivotal role in supporting national tourism growth.

Integration of the UAE’s tourism ecosystem During the meeting, he added: “The outstanding performance of the hospitality and hotel sector reflects the integrated nature of the UAE’s tourism ecosystem and highlights the active role of partnerships between public entities and the private sector. The next phase requires continued efforts under a precise data analytics methodology and balanced planning between supply and demand to ensure sustainable growth and reinforce the long-term competitiveness of this vital sector.”

Enhancing hotel revenue efficiency and flexible pricing H.E. highlighted that the Council’s priorities for this year focus on enhancing the efficiency of revenue management strategies and flexible pricing. These efforts aim to maximise hotel and tourism revenues and ensure the sustainability of strong sector performance. These priorities also include the diversification of tourism source markets to reduce reliance on specific markets, strengthening the sector’s flexibility in the face of global fluctuations, and the development of long-stay accommodation offerings. Additionally, it focuses on attracting high-spending visitor segments to increase average length of stay and enhance economic returns per visitor, increasing hotel revenues in the upcoming phase.

Balancing hotel capacity with actual demand levels In the context, Bin Touq underscored the importance of achieving a sustainable balance between the growth of UAE’s hotel room capacity and actual demand levels, in addition to supporting the adoption of digital solutions and artificial intelligence (AI) technologies in hotel operations and enhancing guest experience. These efforts bolster the UAE’s standing on the global tourism and travel landscape in line with the objectives of the UAE Tourism Strategy 2031.

Global demand for hotel rooms remains strong The Minister of Economy and Tourism further noted that the global demand for hotel rooms continues to grow compared to previous years. This coincides with improved occupancy rates and average daily rates across several key markets, despite a relative slowdown in the growth pace of some advanced economies. He stated that this performance reflects the tourism and hospitality industry’s resilience and ability to adapt to global economic shifts, maintaining operational stability and sustainable growth.

GCC tourism demand sees advanced growth H.E. also remarked that GCC countries continue to witness growth in tourism demand, driven by the momentum of major events, continuous infrastructure development, and the expansion of quality hotel investments.

New tourism products for seniors The Council reviewed a set of new initiatives aimed at developing tourism products tailored for seniors. These include long-term winter residency programs in the UAE, enhancing standards for senior-friendly destinations, and wellness-focused tourism packages. Attracting this segment contributes to increasing the average length of stay, raising tourism spending, and achieving greater performance stability during intermediate and low seasons. The Council also discussed the Silver Economy, which focuses on enhancing seniors' contribution to economic activities and sustainable growth, noting the importance of these initiatives in supporting the tourism industry amidst global demographic shifts.

UAE advances national tourism policies The Council discussed the latest updates on the UAE tourism policy review project in cooperation with the Organisation for Economic Co-operation and Development (OECD). This project aims to evaluate industry competitiveness, enhance governance and institutional coordination, and develop a tourism data system to support evidence-based decision-making. The Council stated that this review constitutes a key step in bolstering the industry’s sustainability and resilience, in line with best international practices in sustainable tourism and data management.

Initiatives to attract family tourism to UAE The meeting addressed the ‘Family-Friendly Destination Guidelines’ initiative, aimed at establishing clear standards to ensure safe and inclusive tourism environments catering to children and families across various facilities, including hotels, parks, malls, beaches, and cultural sites. This initiative contributes to enhancing family support service standards, raising visitor satisfaction, and consolidating the UAE’s position as a leading global family destination, while strengthening its ability to attract multi-generational family tourism.

Enhancing readiness of UAE hospitality sector The meeting concluded by underscoring the importance of continued coordination among relevant entities to monitor future booking indicators and analyze key market trends. This ensures the industry’s readiness to navigate global changes, enhances tourism’s contribution to the GDP, and supports the UAE’s sustainable economic development.