The tourism sector in the United Arab Emirates (UAE) witnessed remarkable growth in 2023, setting new records in terms of GDP contribution, job creation, and international visitor spending. This article highlights the key factors driving this success, the country’s strategy to attract tourists, and the positive impact on the national economy along with future growth projections.
Context and Key Achievements
In 2023, the tourism sector in the United Arab Emirates contributed AED 220 billion to the national GDP, accounting for 11.7% of the entire economy. This figure is expected to rise to AED 236 billion by 2024, according to the World Travel and Tourism Council (WTTC). The sector also saw a substantial increase in international visitor spending, soaring nearly 40% to surpass AED 175 billion, which is 12% above the 2019 levels. Furthermore, the number of tourism-related jobs supported by the sector increased by 41,000, reaching over 809,000, representing one in nine jobs across the country.
Strategic Vision and Infrastructure Development
The strategic vision of the Emirates, as laid out in the UAE Tourism Strategy 2031, aims to attract AED 100 billion in tourism investments and increase the sector’s GDP contribution to AED 450 billion by 2031. The country’s world-class infrastructure, including airports, accommodations, and diverse tourist destinations, has been pivotal in enticing visitors. For example, Dubai received 10.62 million tourists in the first seven months of 2024, marking an 8% increase from the previous year, while hotels in Abu Dhabi hosted over 2.87 million guests in the first half of 2024, generating AED 3.6 billion, a 19.5% year-on-year growth.
Future Projections and Sustainable Tourism
The WTTC predicts that the tourism sector in the UAE will continue to expand, with GDP contributions expected to reach AED 275.2 billion by 2034, employing over 928,000 people nationwide. The sector is also anticipated to maintain its focus on sustainable tourism, aligning with the growing trend of eco-friendly travel preferences. Initiatives like those in Ras Al Khaimah or the NEOM and Red Sea Project in Saudi Arabia highlight the region’s commitment to sustainable luxury tourism.
In short, the UAE’s tourism sector has not only bounced back after the pandemic but has also experienced significant growth, contributing substantially to the country’s economy. With a strong strategic vision, world-class infrastructure, and an emphasis on sustainable tourism, the sector is well-positioned for continuous growth in the coming years.
