UAE Hospitality Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 7.37 Billion |
| Market Size (2029) | USD 9.46 Billion |
| CAGR (2024 - 2029) | 5.12 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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UAE Hospitality Market Analysis
The UAE Hospitality Market size is estimated at USD 7.37 billion in 2024, and is expected to reach USD 9.46 billion by 2029, growing at a CAGR of 5.12% during the forecast period (2024-2029).
One of the country's largest sources of non-oil income is the tourism industry, which is reflected in the country's hotel supply. The UAE has been successful as a leading global destination for both leisure and business travelers, which has undoubtedly positively impacted the country's hospitality sector.
The UAE’s attractiveness as a global travel destination has been further enhanced by its geopolitical stability, world-class infrastructure, and commitment to hosting international events. These factors drive the growth of the tourism industry and, as a result, keep the hospitality industry robust.
UAE’s domestic tourism has shown remarkable resilience and strength, and have noticed an increasing preference for staycations among UAE residents. This preference for staycation is driven by several factors, including convenience, safety, and the opportunity to discover hidden gems within the UAE.
UAE Hospitality Market Trends
Rising Tourism in the United Arab Emirates Bolsters the Growth Hospitality Sector
The economic upturn of the previous year and the commencement of major projects in Dubai has paved the way for strong tourism growth in 2022, setting Dubai on the path to achieving its growth goals over the long term. The year started with a bang for the tourism industry in the United Arab Emirates, as Dubai was named the world's best-traveled destination at the top of the leaderboard at Tripadvisor Travelers' Choice Best of the best destination awards 2023. The share of GDP to the tourism sector reached 10.14% in the first half of 2023.
Tourism continues to be at the heart of Dubai's development strategy and is expected to play a significant role in the Dubai Economic Plan D33. The United Arab Emirates (UAE) has established itself as a world-class tourism destination, drawing in millions of visitors each year due to its dedication to innovation and development.
Luxury Hotel Segment Dominates the Hospitality Industry in UAE
The United Arab Emirates, the tourism capital of the Gulf States, is famous for its glitter and glamour. The place is being visited by people from all over the world looking for luxury and a luxurious lifestyle.
Revenue from Luxury hotels drives with largest share in the current year. For the next few years, more than 130 premium sites with nearly 34,000 rooms are expected to be opened in the country's top-end hotel sector. The country's reputation for luxury remains undimmed as far as forthcoming hotels go, with 64% of the high-end pipeline in the five-star category, equating to 83 sites.
With 68 properties to be completed this year, 52% of the premium pipeline is dominated by a trend toward more rapid delivery. There will be a significant cut in prices to come, starting with 27 sites opening in 2024, followed by just seven and five in 2025 and 2026. There are 23 projects without a delivery date or planned to open after 2026.
One of the most important developments in Dubai is The Heart of Europe, a self-sufficient luxury resort situated six kilometers out into the sea among the World Islands. Sixteen hotels and holiday resorts inspired by major European cities will form part of this new precinct developed by the Kleindienst Group.
UAE Hospitality Industry Overview
The hospitality industry in the United Arab Emirates holds an excellent scope for newcomers to enter. One of the American hospitality giants, Marriott, established a strong base in the country with more than 55 hotels spread across all the region's major cities and offering around 16,000 rooms/keys to the supply. The market is also dominated by many domestic hospitality groups like Jumeirah Group, DAMAC Group, and Emmar Hospitality which are spread across Dubai, Abu Dhabi, Fujairah, Ras Al Khaimah, Sharjah, and Ajman.
UAE Hospitality Market Leaders
Marriott International Inc
Hilton Worldwide Holdings Inc
Jumeirah Group
Emaar Hospitality Group
DAMAC Properties
*Disclaimer: Major Players sorted in no particular order
UAE Hospitality Market News
- April 2023: Dubai-based Hospitality Management Holding (HMH) Group set to launch 18 new hotels in the Arabian Travel Market, During its participation in the ATM-2023, the Group will showcase its projects in the hospitality sector across the region and sign new partnership agreements. The Group will utilize the platform to show its future strategies and expansion plans into foreign markets. The HMH Group manages 13 hotels and resorts in and outside the UAE market, with a total inventory of 2032 rooms.
- March 2023: IHG Hotels & Resorts, one of the world's leading hotel companies with more than 6,000 hotels, made waves with the opening of Voco Dubai The Palm, a brand-new beachfront hotel on the iconic Palm Jumeirah. The hotel has 138 rooms and features two dining options: Maison Mathis, a European restaurant, and Frenia, a rooftop pool bar set to open later in the year.
UAE Hospitality Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. EXECUTIVE SUMMARY
3. RESEARCH METHODOLOGY
4. MARKET INSIGHTS AND DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Rising Tourism in the United Arab Emirates Bolsters the Growth in Hospitality Sector
4.2.2 The Rise in the Mice Industry in the United Arab Emirates Drives the Hospitality Sector
4.3 Market Restraints
4.3.1 High Rentals in the United Arab Emirates Pose a Restraint to the Hospitality Sector
4.4 Market Opportunities
4.5 Value Chain/Supply Chain Analysis
4.6 Industry Attractiveness: Porter's Five Forces Analysis
4.6.1 Bargaining Power of Buyers
4.6.2 Bargaining Power of Suppliers
4.6.3 Threat of New Entrants
4.6.4 Threat of Substitutes
4.6.5 Intensity of Competitive Rivalry
4.7 Insights on Revenue Flow From the Accommodation and Food and Beverage Sector
4.8 Leading Cities In United Arab Emirates With Respect to the Number of Visitors
4.9 Investments (Real Estate, Fdi, and Others) In the Hospitality Industry
4.10 Technological Innovations In the Hospitality Industry
4.11 Insights on Shared Living Spaces Impact on the Hospitality Industry
4.12 Insights on Other Economic Contributors to the Hospitality Industry
4.13 Impact of Covid-19 on Hospitality Industry
5. MARKET SEGMENTATION
5.1 By Type
5.1.1 Chain Hotels
5.1.2 Independent Hotels
5.2 By Segment
5.2.1 Service Apartments
5.2.2 Budget and Economy Hotels
5.2.3 Mid and Upper mid scale Hotels
5.2.4 Luxury Hotels
6. COMPETITVE INTELLIGENCE
6.1 Market Concentration Overview
6.2 Company profiles
6.2.1 Marriott International
6.2.2 Hilton Worldwide Holdings
6.2.3 Emaar Hospitality Group
6.2.4 Rotana Hotels
6.2.5 DAMAC Group
6.2.6 Jumeirah Hotels & Resort
6.2.7 Hyatt Hotel Corporation
6.2.8 Al Habtoor Group
6.2.9 Majid Al Futtaim
6.2.10 Abu Dhabi National Hotels
6.2.11 Accor S.A.
6.2.12 Danat Hotels & Resorts
- *List Not Exhaustive
6.3 Loyalty Programs Offered By Major Hotel Brands
7. FUTURE OF THE MARKET
8. ABOUT US
UAE Hospitality Industry Segmentation
The term "hospitality" refers to the relationship between a host and a guest in which the host accords the guest with some goodwill. This includes welcoming and entertaining guests, visitors, or strangers. 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.
The UAE hospitality market is segmented by type and segment. By type, the market is sub-segmented into chain hotels and independent hotels. By segment, the market is sub-segmented into service apartments, budget, and economy hotels, mid and upper-mid-scale hotels, and luxury hotels. The report offers market size and forecasts for the hospitality industry in the United Arab Emirates in value (USD) for all the above segments.
| By Type | |
| Chain Hotels | |
| Independent Hotels |
| By Segment | |
| Service Apartments | |
| Budget and Economy Hotels | |
| Mid and Upper mid scale Hotels | |
| Luxury Hotels |
UAE Hospitality Market Research FAQs
How big is the UAE Hospitality Market?
The UAE Hospitality Market size is expected to reach USD 7.37 billion in 2024 and grow at a CAGR of 5.12% to reach USD 9.46 billion by 2029.
What is the current UAE Hospitality Market size?
In 2024, the UAE Hospitality Market size is expected to reach USD 7.37 billion.
Who are the key players in UAE Hospitality Market?
Marriott International Inc, Hilton Worldwide Holdings Inc, Jumeirah Group, Emaar Hospitality Group and DAMAC Properties are the major companies operating in the UAE Hospitality Market.
What years does this UAE Hospitality Market cover, and what was the market size in 2023?
In 2023, the UAE Hospitality Market size was estimated at USD 6.99 billion. The report covers the UAE Hospitality Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the UAE Hospitality Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Hospitality in UAE Industry Report
Statistics for the 2024 UAE Hospitality market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. UAE Hospitality analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
