Hospitality Industry in the United Arab Emirates - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The market is segmented by Type (Chain Hotels and Independent Hotels), by Segment (Service Apartments, Budget and Economy Hotels, Mid and Upper Mid Scale Hotels and Luxury Hotels).

Market Snapshot

Hospitality Industry in the United Arab Emirates
Study Period:

2016 - 2026

Base Year:

2020

CAGR:

1 %

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Market Overview

The country’s strategic location, fast-growing world-class airlines, improved transportation infrastructure have been helping the region to grow robustly. Two-thirds of the world’s population lives within an 8-hour fight distance from the United Arab Emirates and International airlines like Emirates and Etihad Airways which are offering best-in-class international travel are becoming major drivers for the growth behind the tourism sector in the country. Over the past decade, through strengthening these sectors the country experienced rapid and sustained growth. The Leisure facilities have become a key component of the United Arab Emirate’s economic diversification strategy and helped the country to attract the international hospitality giants like Marriott International, Hyatt, and Hilton. Meanwhile, the domestic brands DAMAC, Emaar, Jumeirah hospitality groups expanded rapidly in the country. During the 2007 – 2017 decade, the tourism and hospitality sector experienced strong growth and its direct contribution was increased by 138% to the country’s gross domestic product with sectoral employment growing by 119% over the same period. Dubai Expo which was primarily scheduled for 2020 was postponed to 2021 due to COVID – 19 pandemic is expected to bring even more investors to the country.

Scope of the Report

A complete background analysis of the Hospitality Industry in the United Arab Emirates, which includes an assessment of the industry associations, overall economy, and emerging market trends by segments, significant changes in the market dynamics, and market overview is covered in the report.

By Type
Chain Hotels
Independent Hotels
By Segment
Service Apartments
Budget and Economy Hotels
Mid and Upper mid scale Hotels
Luxury Hotels

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Key Market Trends

Strong Key Performing Indicators are Attracting More Investments

With the government’s initiatives in implementing proactive policies to stimulate demand for the region and to increase the growth of visitors by relaxing its visa regulations for key source markets have benefited the region to record growing key performance indicators. The hotels of different segments from budget and economy class to luxury have registered around 70% occupancy rates during 2015 – 2018 in the United Arab Emirates followed by an average 10-year revenue per available room at USD 97 during the past four years. The average revenue of hotels in Dubai registered USD 201 during the past decade followed by Abu Dhabi with USD 165 and the Northern Emirates with USD 114 making the country average revenue USD 137.

Hospitality Industry in the United Arab Emirates

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Increasing Leisure Tourism to the Country is Driving the Hospitality Industry

Dubai Tourism Commerce & Marketing (DTCM), announced that Dubai welcomed 15.92 million overnight visitors during 2018. Mastercard Global Destination Cities Index revealed that Dubai recorded the highest spend per visitor globally during 2018. With the increasing global tourism, the great shopping experience and entertainment facilities that the United Arab Emirates offers has created its own significance as a premier tourism and leisure destination in the world. Recently opened Warner Bro’s World in Abu Dhabi, Sea World, Guggenheim, the under-construction Six Flags Dubai are a few to name that are forecasted to attract a large number of visitors to the country.

Hospitality Industry in the United Arab Emirates

Competitive Landscape

The hospitality industry in the United Arab Emirates holds a great scope for newcomers to enter. One of the American hospitality giant Marriott established a strong base in the country with more than 55 hotels that are spread across all the major cities of the region and are offering around 16,000 rooms/keys to the supply. The market is also dominated by many domestic hospitality groups like Jumeirah Group, DAMAC Group, Emmar Hospitality which are spread across Dubai, Abu Dhabi, Fujairah, Ras Al Khaimah, Sharjah, and Ajman.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Deliverables

    2. 1.2 Scope of the Study

  2. 2. EXECUTIVE SUMMARY

  3. 3. RESEARCH METHODOLOGY

  4. 4. MARKET INSIGHTS AND DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Market Dynamics

      1. 4.2.1 Drivers

      2. 4.2.2 Restraints

      3. 4.2.3 Opportunities

    3. 4.3 Impact of COVID-19 on Hospitality Industry

    4. 4.4 Insights on Revenue Flows from Accommodation and Food and Beverage Sectors

    5. 4.5 Leading Cities in the United Arab Emirates with Respect to Number of Visitors

    6. 4.6 Investments (Real Estate, FDI and others) in the Hospitality Industry

    7. 4.7 Technological Innovations in the Hospitality Industry

    8. 4.8 Insights on Shared Living Spaces Impact on the Hospitality Industry

    9. 4.9 Insights on Other Economic Contributors to the Hospitality Industry

    10. 4.10 Value Chain Analysis

    11. 4.11 Porter's Five Forces Analysis

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Type

      1. 5.1.1 Chain Hotels

      2. 5.1.2 Independent Hotels

    2. 5.2 By Segment

      1. 5.2.1 Service Apartments

      2. 5.2.2 Budget and Economy Hotels

      3. 5.2.3 Mid and Upper mid scale Hotels

      4. 5.2.4 Luxury Hotels

  6. 6. COMPETITVE INTELLIGENCE

    1. 6.1 Market Concentration

    2. 6.2 Company profiles

      1. 6.2.1 Marriott International Inc

      2. 6.2.2 Hilton Worldwide Holdings Inc

      3. 6.2.3 Emaar Hospitality Group

      4. 6.2.4 Rotana Hotels

      5. 6.2.5 DAMAC Properties

      6. 6.2.6 Jumeirah Hotels and Resorts

      7. 6.2.7 Hyatt Hotels Corporation

      8. 6.2.8 Al Habtoor Group

      9. 6.2.9 Majid Al Futtaim

      10. 6.2.10 Abu Dhabi National Hotels*

    3. *List Not Exhaustive
    4. 6.3 Loyalty programs offered by Major Hotel Brands

  7. 7. INVESTMENT ANALYSIS

  8. 8. FUTURE OUTLOOK OF THE SECTOR

  9. 9. APPENDIX

**Subject to Availability

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Frequently Asked Questions

The Hospitality Industry in the United Arab Emirates market is studied from 2016 - 2026.

The Hospitality Industry in the United Arab Emirates is growing at a CAGR of 1% over the next 5 years.

  • Marriott International Inc
  • Hilton Worldwide Holdings Inc
  • Jumeirah Group
  • Emaar Hospitality Group
  • DAMAC Properties

Are the major companies operating in Hospitality Industry in the United Arab Emirates.

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