Tourism contributed 12% to the UAE’s gross domestic product (GDP) in 2024, according to new insights compiled within the hospitality sector by real estate consultancy Cavendish Maxwell. The US and Europe each saw contributions of about 10%.
The sector contributed AED236 billion (up from AED220 billion in 2023) to the UAE’s economy, highlighting it’s significant impact, reinforcing its vital role in the country’s economic expansion.
Dubai’s hospitality sector: Sustaining growth amidst new opportunities
Meanwhile, the emirate’s most popular city, Dubai’s GDP in 2024 grew by 3.1% year-on-year, reaching AED 339.4 billion.
Dubai’s hospitality sector continues to experience robust growth, reaching a new milestone in 2024 with 18.72 million overnight visitors – an increase of 9.15% from the previous year.
Of the intake, Western Europeans lead at 20% (3.7 million), while South Asians (17%), GCC tourists (15%), and Eastern Europeans (14%) followed closely. On the other hand, low-performing regions like Africa and Australasia, which
currently contribute only 7% combined, have significant potential for future growth, added Cavendish Maxwell.
Meanwhile the emirate achieved a record 1.28 million visitors in 2024, this represented a 4.9% increase from the previous year.
The luxury hospitality industry experienced the most growth with the luxury and upper-midscale segments experiencing the most significant gains, rising by 3.0% and 2.4%, respectively.
This sector is also expecting approximately 36% of the new supply in 2025, and amount to 59% of new properties. Among upcoming additions include, The Dorchester Collection Ela, Kempinski Floating Sea Palace Resort and the Six Senses Dubai the Palm.
Additionally, the upcoming Wynn Al Marjan Island resort, set to open in 2027 with the Gulf’s first gaming resort, has spurred significant hotel development in the area.
Dubai leads global luxury real estate with 147pc growth in five years: report
Growth trajectory
This growth trajectory places Dubai on track to reach the goal of the Dubai Economic Agenda D33, which aims to position the city among the top three global tourism destinations.
Dubai International (DXB) also a new benchmark in global aviation, welcoming 92.3 million passengers in 2024 – its highest annual traffic on record. This milestone surpasses the previous high of 89.1 million set in 2018 and reflects a 6% increase over 2023 (86.9 million passengers).
Along with this expansion, global accolades, such as being named the world’s leading tourism destination and having a top-ranked airport, further reinforce Dubai’s status as a key hub for both leisure and business.
As it continues to build infrastructure and capacity, continued success will depend on attracting high-spending tourists and hosting major events.
Looking ahead, Dubai’s hospitality market is well-positioned for continued growth, but it will need to adapt to emerging trends and maintain its competitive edge to ensure long-term success, added the report.
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