A general view of Jumeirah Beach Residence and Dubai Eye ferris wheel. International visitors to Dubai crossed 3.4 million in the fourth quarter of 2021. Reuters
A general view of Jumeirah Beach Residence and Dubai Eye ferris wheel. International visitors to Dubai crossed 3.4 million in the fourth quarter of 2021. Reuters
A general view of Jumeirah Beach Residence and Dubai Eye ferris wheel. International visitors to Dubai crossed 3.4 million in the fourth quarter of 2021. Reuters
A general view of Jumeirah Beach Residence and Dubai Eye ferris wheel. International visitors to Dubai crossed 3.4 million in the fourth quarter of 2021. Reuters

Dubai posts 32% increase in 2021 visitor numbers as tourism sector recovers


Shweta Jain
  • English
  • Arabic

Dubai hosted 7.28 million international overnight visitors between January and December 2021, as global tourism industry continues to recover from the coronavirus pandemic.

The visitor numbers to the emirate last year were up 32 per cent year-over-year, Dubai Media Office said in a statement on Thursday, citing data from Dubai’s Department of Economy and Tourism (DET).

International visitors to the emirate crossed 3.4 million in the fourth quarter of 2021, which is 74 per cent of the total pre-pandemic tourist arrivals in the same period in 2019.

“Our ability and agility in achieving a remarkable turnaround amid continuing global challenges has cemented Dubai’s position as the destination of choice for international travellers,” said Helal Al Marri, director general of DET.

“Dubai’s success in 2021 is testament to the carefully calibrated strategy and decisive measures that were put in place at the outset to counter and manage the pandemic across all sectors including trade and tourism.”

Dubai’s success in 2021 is testament to the carefully calibrated strategy and decisive measures that were put in place at the outset to counter and manage the pandemic across all sectors including trade and tourism
Helal Al Marri,
director general of DET

In December, Dubai International Airport retained its position as the world's busiest for international passengers, overtaking major hubs such as London's Heathrow, as passenger traffic surged during the busy travel period. The emirate held on to the top spot with 3.54 million seats, about one million more than the next busiest airport, Heathrow, according to aviation consultancy OAG.

The growth in international visitors last year was led by India with 910,000 visitors, followed by 491,000 travellers from Saudi Arabia, and Russia and the UK accounting for 444,000 visitors and 420,000 visitors, respectively, according to DET.

The Middle East and North Africa and GCC markets collectively contributed to 26 per cent of Dubai’s total international visitor volumes, while western Europe accounted for 22 per cent of total visitors in 2021.

The emirate’s hotels, meanwhile, outperformed pre-pandemic levels across all measurements in the fourth quarter of 2021, with occupancy levels exceeding 81.4 per cent compared to 80.7 per cent occupancy during Q4, 2019.

Average occupancy reached 67 per cent in 2021 compared to 54 per cent in the previous year, the statement said.

Expo 2020 Dubai continues to serve as a catalyst for drawing more visitors to the city, attracting 11.6 million visits by residents and global travellers in the space of four months, it added.

“Dubai’s well-coordinated, consistent, proactive and creative approach enabled it to lay the groundwork for an accelerated recovery that received a major boost with the opening of Expo 2020 Dubai and the UAE Golden Jubilee celebrations,” Mr Al Marri said.

Dubai also continued to score high across international indices in 2021, further reinforcing its global appeal.

The emirate was ranked No 1 in the Middle East, Africa and South Asia region and No 12 globally in Julius Baer's Global Wealth and Lifestyle Report 2021, while in the Global Talent Competitive Index Dubai ranks the third most desirable destination to live and work.

The Gallup Global Law and Order 2021 report ranked the UAE as the No 2 safest country in the world, the media office said.

“In showcasing Dubai as a must-visit destination to an international audience and maintaining momentum, we have leveraged and depended on a combination of factors including our focus on a diversified multi-geographic approach to markets, the strong public-private sector partnerships and global campaigns designed to create awareness of Dubai,” said Issam Kazim, chief executive of Dubai Corporation for Tourism and Commerce Marketing.

Across 2021, and now in 2022, Dubai continues to reap the benefits of the series of measures that were put in place at the outset of the pandemic. With more than 94 per cent of the UAE population vaccinated, the country topped Bloomberg's Covid Resilience Ranking in January this year.

“As we move forward throughout 2022, we are confident that the significant momentum now gathered will accelerate even further to continue to attract not just tourists but also investors, entrepreneurs and innovators to Dubai,” Mr Al Marri said.

Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

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Favourite holiday destination: Being at home in Australia, as I travel all over the world for work. It’s great to just hang out with my husband and family.

 

 

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A worker is categorised as skilled by the MOHRE based on nine levels given in the International Standard Classification of Occupations (ISCO) issued by the International Labour Organisation. 

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Updated: May 17, 2023, 3:52 PM