UAE Hospitality Market Size (2024 - 2029)

The market size of the UAE hospitality sector is projected to grow significantly in the coming years, driven by the country's thriving tourism industry, a key source of non-oil income. This growth is expected to be reflected in an increase in hotel supply, with the UAE set to welcome a large number of premium sites in the future. The hospitality sector is also leveraging digital tools for marketing, research, and destination management to accelerate recovery post-COVID-19. Furthermore, the sector is showing an increased interest in environmental, social, and corporate governance (ESG) issues, encouraging sustainable practices across the industry. With the government's forward-thinking vision, the UAE's hospitality sector is emerging stronger than ever after the economic slowdown caused by the pandemic.

Market Size of UAE Hospitality Industry

Single User License

$4750

Team License

$5250

Corporate License

$8750

Book before:
UAE Hospitality Market Summary
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

UAE Hospitality Market Major Players

*Disclaimer: Major Players sorted in no particular order

setting-icon

Need a report that reflects how COVID-19 has impacted this market and its growth?

Single User License

$4750

Team License

$5250

Corporate License

$8750

Book before:

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 More

UAE Hospitality Market Size - Table of Contents

  1. 1. MARKET INSIGHTS AND DYNAMICS

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

      1. 1.2.1 Rising Tourism in the United Arab Emirates Bolsters the Growth in Hospitality Sector

      2. 1.2.2 The Rise in the Mice Industry in the United Arab Emirates Drives the Hospitality Sector

    3. 1.3 Market Restraints

      1. 1.3.1 High Rentals in the United Arab Emirates Pose a Restraint to the Hospitality Sector

    4. 1.4 Market Opportunities

    5. 1.5 Value Chain/Supply Chain Analysis

    6. 1.6 Industry Attractiveness: Porter's Five Forces Analysis

      1. 1.6.1 Bargaining Power of Buyers

      2. 1.6.2 Bargaining Power of Suppliers

      3. 1.6.3 Threat of New Entrants

      4. 1.6.4 Threat of Substitutes

      5. 1.6.5 Intensity of Competitive Rivalry

    7. 1.7 Insights on Revenue Flow From the Accommodation and Food and Beverage Sector

    8. 1.8 Leading Cities In United Arab Emirates With Respect to the Number of Visitors

    9. 1.9 Investments (Real Estate, Fdi, and Others) In the Hospitality Industry

    10. 1.10 Technological Innovations In the Hospitality Industry

    11. 1.11 Insights on Shared Living Spaces Impact on the Hospitality Industry

    12. 1.12 Insights on Other Economic Contributors to the Hospitality Industry

    13. 1.13 Impact of Covid-19 on Hospitality Industry

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Type

      1. 2.1.1 Chain Hotels

      2. 2.1.2 Independent Hotels

    2. 2.2 By Segment

      1. 2.2.1 Service Apartments

      2. 2.2.2 Budget and Economy Hotels

      3. 2.2.3 Mid and Upper mid scale Hotels

      4. 2.2.4 Luxury Hotels

UAE Hospitality Market Size FAQs

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.

In 2024, the UAE Hospitality Market size is expected to reach USD 7.37 billion.

Hospitality Industry in UAE Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)