UAE hotel revenues surge 27% to almost $9bn in first nine months of 2023

Fireworks light up the sky by the Burj Al Arab luxury hotel tower in Dubai at midnight on New Year's Eve. AFP

Hotels in the UAE recorded a 27 per cent annual jump in revenues to Dh32.2 billion ($8.7 billion) in the first nine months of 2023, reflecting a robust uplift in the country's tourism sector, according to the Minister of Economy.

The number of hotel guests in the Emirates reached 20.2 million during the January-September period, up 12 per cent from the same period in 2022, Abdulla bin Touq, Minister of Economy, said on Thursday.

The hotel occupancy rate hit 75 per cent during the period, recording a 6 per cent annual growth.

These indicators play a crucial role in achieving the national target set by the We The UAE 2031 vision to raise the sector’s contribution to the country’s economy to Dh450 billion by the next decade, said Mr bin Touq, who is also chairman of the UAE Tourism Council.

Tourism is considered one of the strategic pillars towards transitioning towards a new economic model.

Meanwhile, to boost the tourism industry in the Emirates, Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, on Thursday launched the fourth season of the domestic tourism campaign, World’s Coolest Winter 2024, which runs until February 20.

The initiative, under the theme “unforgettable stories”, is aimed at showcasing the UAE's “unique tourism attractions and winter experiences, its rich cultural heritage, and enchanting natural landscapes”, said Mr bin Touq.

The campaign aligns with the goals of the National Tourism Strategy 2031, launched in November 2022, to attract 40 million hotel guests by 2031 and Dh100 billion in tourism investment to the UAE.

It has yielded substantial economic benefits for domestic tourism, with hotel revenues reaching Dh1.8 billion, up 20 per cent compared to the second edition of the campaign, which amounted to Dh1.5 billion, according to official data.