Market Size of UAE Hospitality Industry
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 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 Size Summary
The UAE hospitality market is experiencing significant growth and is projected to continue expanding in the coming years. The tourism industry, a substantial source of non-oil income for the country, is a major contributor to this growth. Numerous premium sites are expected to be added to the UAE's hotel supply chain, reflecting the country's robust tourism industry. In the aftermath of the COVID-19 pandemic, the UAE is leveraging digital tools for marketing, research, and destination management, allowing it to reach a wider audience of both domestic and international tourists. The future of the hospitality sector in the UAE appears promising, with substantial investments being made to add more hotel rooms. The sector is also showing increased interest in environmental, social, and corporate governance (ESG) issues, which is inspiring change and encouraging sustainable practices across the industry. This, along with the government's forward-thinking vision, has allowed UAE hotels to emerge stronger than ever after the economic slowdown caused by the pandemic.
Explore MoreUAE Hospitality Market Size - Table of Contents
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1. MARKET SEGMENTATION
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1.1 By Type
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1.1.1 Chain Hotels
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1.1.2 Independent Hotels
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1.2 By Segment
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1.2.1 Service Apartments
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1.2.2 Budget and Economy Hotels
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1.2.3 Mid and Upper mid scale Hotels
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1.2.4 Luxury Hotels
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UAE Hospitality Market Size 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.