More than 75 million hotel nights were booked in the UAE in 2021, marking a 42 per cent annual increase, the tourism authority said. AP
More than 75 million hotel nights were booked in the UAE in 2021, marking a 42 per cent annual increase, the tourism authority said. AP
More than 75 million hotel nights were booked in the UAE in 2021, marking a 42 per cent annual increase, the tourism authority said. AP
More than 75 million hotel nights were booked in the UAE in 2021, marking a 42 per cent annual increase, the tourism authority said. AP

UAE hotels welcomed 19 million guests in 2021 as sector 'recovers fully' from Covid-19


Alvin R Cabral
  • English
  • Arabic

Hotels in the UAE hosted 19 million tourists in 2021 as the sector rebounded strongly from the Covid-19 pandemic, which hit the hospitality industry hard, the Emirates Tourism Council said.

The country's hotels hosted 29 per cent more visitors last year compared to 2020 and generated revenue of Dh28 billion ($7.6bn), a 70 per cent surge compared to the previous year, the council said in a statement on Wednesday.

Domestic tourists accounted for 58 per cent of the total number of guests.

The council reviewed the UAE's plans to develop a tourism data system in accordance with global standards and promote tourism in foreign markets to attract more visitors.

“This shows a full recovery of the national tourism sector and confirms the positive direction it is increasingly achieving,” said Ahmad Al Falasi, Minister of State for Entrepreneurship and SMEs, who presided the council's first meeting of 2022.

The UAE's tourism industry recovered well from the Covid-19 crisis thanks to stringent safety measures, a massive vaccination campaign and well-planned programmes to get the sector back on track safely.

More than 75 million hotel nights were booked last year, a 42 per cent annual increase, while the occupancy rate hit 67 per cent, among the highest when compared to leading tourist destinations worldwide, the council said.

The number of hotels in the UAE rose 5 per cent year-on-year to 1,144 in 2021, while the number of hotel rooms increased 8 per cent to 194,000 rooms across the country.

The UAE hotels sector also posted a strong start to this year on the back of Expo 2020 Dubai and returning international visitors, a report by JLL found.

The completion of about 3,500 rooms and suites across Dubai projects resulted in total stock reaching 144,000 in the first quarter, with occupancy rate surging more than 77 per cent in January and February, the property consultancy said.

In Abu Dhabi as well, the occupancy rate was at 75 per cent in the first two months of the year.

Among the primary drivers of the momentum were beachfront and luxury developments, thanks to stronger demand for leisure properties, as well as upmarket and midmarket hotels that posted higher average daily rates, JLL said.

The UAE also announced visa policy changes this month which are expected to boost tourism. Under the new visa rules, the country will allow visitors and holidaymakers to enter and stay for 60 days as standard, from September.

Mr Al Falasi acknowledged the vital role major events have played in reviving the tourism industry, most notably the world's fair, which attracted more than 24 million visitors in six months, and the second ‘most beautiful winter in the world’ campaign, which hosted more than 1.3 million domestic tourists and generated revenue of about Dh1.5bn in one and a half months.

The council also discussed the Tourism Satellite Account (TSA), one of the projects for tourism development in the UAE, comprising more than 15 federal and local government bodies.

It aims to develop a national integrated statistics organisation that will contribute to transparency and the development of technology to support the decision-making process in the country.

The UAE has also signed an agreement with the United Nations World Tourism Organisation to support the development of this statistics system, with the latter to provide technical and knowledge support.

The TSA will play an important role in "increasing the efficiency of the country's tourism statistics system" by measuring the sector's economic indicators and its contribution to the national economy and the labour market, the statement said.

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The%20specs
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COMPANY%20PROFILE
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How to play the stock market recovery in 2021?

If you are looking to build your long-term wealth in 2021 and beyond, the stock market is still the best place to do it as equities powered on despite the pandemic.

Investing in individual stocks is not for everyone and most private investors should stick to mutual funds and ETFs, but there are some thrilling opportunities for those who understand the risks.

Peter Garnry, head of equity strategy at Saxo Bank, says the 20 best-performing US and European stocks have delivered an average return year-to-date of 148 per cent, measured in local currency terms.

Online marketplace Etsy was the best performer with a return of 330.6 per cent, followed by communications software company Sinch (315.4 per cent), online supermarket HelloFresh (232.8 per cent) and fuel cells specialist NEL (191.7 per cent).

Mr Garnry says digital companies benefited from the lockdown, while green energy firms flew as efforts to combat climate change were ramped up, helped in part by the European Union’s green deal. 

Electric car company Tesla would be on the list if it had been part of the S&P 500 Index, but it only joined on December 21. “Tesla has become one of the most valuable companies in the world this year as demand for electric vehicles has grown dramatically,” Mr Garnry says.

By contrast, the 20 worst-performing European stocks fell 54 per cent on average, with European banks hit by the economic fallout from the pandemic, while cruise liners and airline stocks suffered due to travel restrictions.

As demand for energy fell, the oil and gas industry had a tough year, too.

Mr Garnry says the biggest story this year was the “absolute crunch” in so-called value stocks, companies that trade at low valuations compared to their earnings and growth potential.

He says they are “heavily tilted towards financials, miners, energy, utilities and industrials, which have all been hit hard by the Covid-19 pandemic”. “The last year saw these cheap stocks become cheaper and expensive stocks have become more expensive.” 

This has triggered excited talk about the “great value rotation” but Mr Garnry remains sceptical. “We need to see a breakout of interest rates combined with higher inflation before we join the crowd.”

Always remember that past performance is not a guarantee of future returns. Last year’s winners often turn out to be this year’s losers, and vice-versa.

COMPANY%20PROFILE
%3Cp%3E%3Cstrong%3EName%3A%20%3C%2Fstrong%3ETelr%3Cbr%3E%3Cstrong%3EBased%3A%20%3C%2Fstrong%3EDubai%2C%20UAE%3Cbr%3E%3Cstrong%3ELaunch%20year%3A%3C%2Fstrong%3E%202014%3Cbr%3E%3Cstrong%3ENumber%20of%20employees%3A%20%3C%2Fstrong%3E65%3Cbr%3E%3Cstrong%3ESector%3A%20%3C%2Fstrong%3EFinTech%20and%20payments%3Cbr%3E%3Cstrong%3EFunding%3A%20%3C%2Fstrong%3Enearly%20%2430%20million%20so%20far%3C%2Fp%3E%0A
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Updated: April 27, 2022, 3:42 PM