Year-round sunshine, new hotels, family-friendly facilities, promotions and world-class restaurants all mean UAE staycations are not only hugely popular with residents, but are also big business for the region’s hospitality sector.
With so much choice on offer, residents are faced with factors outside of the traditional constraints of cost and proximity, which can influence where they choose to spend their holiday.
“Staycations have become a popular lifestyle choice among UAE residents,” says Raheesh Babu, chief operating office of online travel management company Musafir.com. “We’ve seen consistent year-on-year growth of between 20 and 25 per cent in local hotel bookings, with demand extending well beyond traditional peak periods such as Eid and National Day. Residents are now treating long weekends and short breaks as opportunities to unwind locally, making staycations one of our most resilient and consistently growing booking categories.”
Data from Visa, Skyscanner and Wego all show an increase in UAE staycations with Visa’s Travel Pulse: Eid Al Adha report from June 2025 finding 68 per cent year-on-year growth in domestic travel spending in the UAE, with Dubai accounting for 70 per cent of staycations. Importantly, in an increasingly unpredictable world, staycations negate the need to arrange flights, visas and travel documentation.
“Increasingly, we see travellers preferring value-for-money trips and less stress,” says Seyi Oduwole, travel and hospitality foresight analyst at The Future Laboratory. “Consumers value longer staycations, without having to worry about visas, insurance or geopolitics.”
Are staycations more expensive in 2026?
“Staycation costs in the UAE have risen noticeably over the last two to three years, with Dubai hotel rates in particular climbing well above pre-2022 levels,” says Babu. “The mid-range segment continues to show pricing flexibility outside of peak windows, and geographic diversification into the Northern Emirates offers competitive alternatives.”
Staycations have also become more expensive this year compared to 2025. High hotel occupancy rates, increased immigration, national holidays and changes to school term timings have caused the UAE to outstrip both the US and the UK’s staycation stats of 44 per cent and 63 per cent respectively, according to Hotelagio’s Staycation Statistics 2026 Edition.
Is luxury hotel market pushing up costs?
According to Henley & Partners’ June 2025 Private Wealth Migration Report, the UAE welcomed more than 9,000 millionaires last year. This influx of high-net-worth individuals has gone hand in hand with an increase in luxury hotels, the opening of which have outpaced development of mid and lower price range establishments.
In its Dubai Hospitality Sector – Market Performance report published last year, chartered surveyors Cavendish Maxwell notes: “Total new supply for 2025 is 4,619 rooms across 20 hotels with the largest additions in the luxury segment, [accounting for] 36 per cent. This is followed by the upper upscale segment with 33 per cent of new supply. Additionally, luxury supply is projected to experience significant growth in 2026.”
Babu says: “Much of the hotel supply entering the market is skewed towards luxury, lifting the overall rate benchmark. With international airfares remaining high, residents who might otherwise have travelled abroad are staying local and hotels are pricing accordingly. Add a year-round events calendar that creates repeated demand spikes, and you have a market where premium pricing has become the norm rather than the exception.”
How do Ramadan and Eid influence staycation prices?
“Average hotel rates during Ramadan 2026 have increased by 17 per cent year-on-year,” says Mamoun Hmidan, chief business officer at Wego. “Staycations have become a core part of travel behaviour in the UAE, and this year we’re seeing that demand accelerate significantly. According to Wego data, staycation searches from UAE residents have more than doubled compared to Ramadan last year. That tells us domestic short breaks are not just a seasonal trend, they’re becoming an established travel choice.”
Hotel room prices increase dramatically during national holidays and school breaks compared to off-peak rates. Additionally, as Eid Al Fitr and Eid Al Adha dates are estimated in advance, hotels can price accordingly around these periods.
Hmidan says these increases have driven up interest in mid-priced hotels: “This Ramadan we’re seeing strong interest in four-star properties, which account for about 31 per cent of searches, suggesting travellers are seeking comfort and quality while still being value-conscious.”
What do UAE residents want from their staycation?
Travel experts point to a change in the factors driving staycation choices, with many holidaymakers moving away from cost being the main consideration. Those who want to feel like they’re getting a deal are more likely to seek out add-ons, such as free meals for children or additional nights, rather than basing their decision on price point alone.
“Price becomes most powerful not as a discount, but as a signal that the guest is getting something others aren’t,” says Babu. “We are seeing a significant shift where guests are prioritising value-driven experiences over just a room booking. Total-stay packages including spa access, curated dining and immersive children's activities have moved from afterthoughts to primary booking triggers.”
Hmidan adds: “Staycations are increasingly experience-led. Travellers are prioritising location over luxury alone; they want to be close to cultural venues, entertainment hubs, dining districts and waterfront promenades, so they can combine relaxation with social and lifestyle experiences. Nearly 75 per cent of top searched hotels are near cultural and heritage districts, reinforcing that meaningful, culturally aligned experiences are shaping booking decisions.”
Although staycations are usually booked for shorter periods than a “main” holiday, UAE residents don’t want the shorter time frame to detract from the sense that they are on vacation.
“There is growing interest in more premium experiences, from branded beach resorts to desert retreats, as residents look for something that feels like a ‘proper holiday’ without leaving the country,” says Naeem Patelia at Travel Counsellors UAE. “Family‑friendly resorts with water parks, children's clubs or private beach access are always in demand, and people use events such as sports and concerts as an excuse to have a staycation as well.”
Will Dubai continue to dominate as a staycation destination?
According to Skyscanner data from 2025, Dubai remains the most popular emirate for staycations, followed by Abu Dhabi and Ras Al Khaimah, with July the busiest month for bookings.
However, with each emirate cultivating its own distinct attractions and personality (from Disneyland Abu Dhabi to Wynn Al Marjan Island in Ras Al Khaimah), staycations beyond Dubai could soon become the norm.
“While Dubai remains a powerhouse for luxury and 'glamping' escapes, there is a clear geographic diversification,” says Babu. “Abu Dhabi is surging as a destination for cultural experiences, island retreats and world-class theme parks, while the Northern Emirates, from the mountains of Ras Al Khaimah to the coasts of Fujairah and Ajman, are seeing high demand from residents seeking nature and cooler landscapes. Across the Emirates, our fastest-growing segments are wellness-focused retreats and all-inclusive family bundles, reflecting a desire for seamless, high-value escapes within the UAE.”
Oduwole adds: “A massive staycation trend we have seen in the UAE is social wellness, specifically longevity-focused trips.”
How to get a staycation deal in the UAE?
It used to be that the best staycation bargains were achieved through last-minute deals as hotels waited to lowered prices to fill unoccupied rooms, but Babu says this approach has changed. “For residents, the key to securing value is now shifting from last-minute deals to strategic, early bookings.”
If price is your main consideration when booking a holiday in the UAE, look to the plethora of four or three-star hotels and older resorts, where deals can be found.
“For many guests, price remains very important,” says Patelia. “They are looking for a quick, easy break that does not cost an excessive amount, and many four-star properties cater to this with competitive rates and good value.”
Price aside, resident are spoilt for choice when it comes to bagging a staycation deal based on their priorities: from cultural and culinary experiences to children's activities, picturesque road trips and even resorts with indoor pools for when the summer hits,
