UAE’s booming tourism industry

2023 is a year of high tourism for the UAE, with Dubai named the world’s most popular destination in the Tripadvisor Travellers’ Choice Best Destinations 2023 awards. This is the second time in a row that the online travel platform has recognized Dubai’s enormous tourism appeal based on the combined reviews of millions of travelers for the period November 2021-October 2022.

The ranking comes as Tripadvisor releases its rankings, as data from the United Nations World Trade Organization (UNWTO) shows that the Middle East will see the strongest relative growth in international tourist arrivals in 2022, reaching 83% of pre-pandemic numbers.

This follows a September 2022 UNWTO report that the Middle East will see the fastest recovery between January 2022 and July 2022, with arrivals nearly quadrupling year-on-year to 79% of 2019 levels . Within the region, the UAE is the only country to surpass pre-pandemic tourism levels in the first seven months of 2022.

The surge in tourist arrivals can be attributed to a variety of factors, such as visa reforms announced last year that made it easier to travel to the UAE. New visa rules allow tourists to stay in the country for 60 days instead of 30. Repeat visits to the country are also encouraged by the new five-year multiple-entry tourist visa.

Tourist arrivals have been further strengthened by airlines in the UAE, who have not only resumed services on routes suspended during the Covid-19 pandemic, but also added new destinations and frequencies.

Passenger traffic triples at Abu Dhabi International Airport

Abu Dhabi, the capital of the UAE, has become an important gateway to the country. According to the Moody Davit report, 15.54 million tourists will pass through Abu Dhabi International Airport in 2022.This figure is three times the number of people the airport will serve in 2021 (5.26 million), marking a 73.6% recovery from pre-pandemic
2019 level.

Abu Dhabi’s Department of Culture and Tourism also reported an occupancy rate of 70%, with 4.1 million tourists staying at hotels in the emirate last year. By 2022, hotel revenue will increase by 23% over the previous year to reach AED5.4 billion.

“2022 will be a phenomenal year for Abu Dhabi in terms of passenger traffic. Looking ahead, we are working hard to prepare for even greater passenger traffic in 2023, and we expect that as more and more international tourists come to Come to the UAE to attend important events,” Jamal Salem Al Dhaheri, managing director and chief executive officer of Abu Dhabi Airports, said in a statement.

Millions attend Dubai event

Driven by events such as Expo 2020 Dubai, Gulfood, World Government Summit, Gitex Global and Arabian Travel Market, Dubai welcomed 14.36 million international overnight visitors in 2022, surpassing global and regional recovery barometers. Figures released by the United Nations World Tourism Organization in January showed 86% of tourists visiting the city, exceeding the 2022 global recovery level of 63% and the Middle East recovery level of 83%.

“Art and cultural tourism has also become an important trend in Dubai. Dubai’s diverse heritage and contemporary art scene offers a unique blend of traditional and contemporary art experiences, including Art Dubai and World Art Dubai events, attracting global and regional audience,” said Issam Kazim (TCM), CEO of Dubai Tourism and Business Marketing Company.

Kazakhstan’s aviation and hotel sectors boom

Among the northern emirates, Ras Al Khaimah (RAK) posted impressive results for 2022. The Ras Al Khaimah Tourism Development Authority (RAKTDA) surpassed 1.13 million overnight arrivals in 2022, setting a record for the emirate’s highest ever annual visitor numbers. International tourists rose by 40%, with Kazakhstan, Russia, the United Kingdom, Germany and the Czech Republic the main source markets.

In 2022, RAKTDA has taken a series of initiatives to increase the number of tourists. The agency has organized more than 90 roadshows, trade fairs and media events in 24 markets, as well as more than 50 events within the emirate, such as the Air Arabia Summit and DP World Tour.

RAKTDA now aims to attract 3 million tourists per year by 2030. “We will achieve this by expanding global access and seamless connectivity to the emirate through strategic airline partners such as Qatar Airways,” said RAKTDA CEO Raki Phillips.

Phillips was referring to the airline’s announcement at the Air Arabia Summit in March that it would begin operating non-stop flights to the emirate from November this year. RAKTDA has also struck an agreement with major German tour operator FTI Group, paving the way for twice-weekly direct flights from Munich to Ras Al Khaimah, also starting in the fourth quarter of 2023.

Bahrain’s Gulf Air also offers twice-weekly flights to the Republic of Kazakhstan, making it easier for tourists to travel to the emirate.

Meanwhile, RAK is bracing for a massive boom in its hotel portfolio, with 19 properties (6,533 rooms) under construction in the next few years, including a multibillion-dollar integrated resort development with Wynn Resorts in early 2027 Project – the largest – FDI of its kind in Ras Al Khaimah.

“Another key to sustaining our growth is positioning ourselves as a destination of the future, driven by sustainability, accessibility and diversity. We have committed AED500 million to develop more than 20 purpose-built oriented tourism projects that will improve our natural environment.

We’re also investing in cultural preservation, with four tentative UNESCO World Heritage Sites and diversifying our portfolio with sustainable accommodation at Jebel Jais for guided walks, focused pursuits and creativity Experience the ultimate mountain vacation experience,” adds Phillips.

Northern Emirates on upward trajectory

The emirate’s hospitality sector registered 626,000 guests in the first half of 2022, a 12 percent increase compared to the same period in 2021, according to data released by the Sharjah Commerce and Tourism Development Authority (SCTDA).

The emirate remains the top destination for European tourists, with 1.4 million hotel guests, 165,000 of them from Russia.

The total number of hotel guests in Germany increased by 31% compared to the previous year. SCTDA revealed that hotel revenue in the first half of 2022 exceeded AED 200 million, a 50% increase compared to the same period in 2021.

Passenger traffic at Sharjah Airport will increase by 84.73% in 2022 to reach 13 million passengers, reaching pre-pandemic levels (13.6 million in 2019), compared to 7 million in 2021.

Ajman has also seen an upward trend in tourist numbers. Compared with 2021, in 2022, the overall revenue of the hotel industry will increase by 9%, foreign tourists will increase by 26%, and the average room rate will increase by 14%.

“Tourism continues to recover and the achievements to date are the result of full cooperation with our stakeholders to achieve common strategic goals,” said Mahmood Khaleel Alhashmi, director general of the Ajman Tourism Development Department (ADTD), at the department’s January at the annual meeting.

Further up the coast, Umm Al Quwain is also keen to capture a share of the country’s tourism market and has become the focus of the UAE’s ecotourism efforts through its 2031 Sustainable Blue Economy Strategy.

Under the strategy, eight transformative projects will be implemented in different sectors, including the development of the Umm Al Quwain Mangrove Reserve, which will allow tourists to explore the emirate’s natural beauty and coastline.

Tourism on the UAE’s east coast is also doing well, according to real estate consultancy CBRE. Fujairah reported a 26.7% increase in revenue per available room in the second quarter of 2022.

“Additionally, Fujairah has seen higher occupancy growth than the rest of the UAE and has seen one of the strongest growth in average daily room rates,” the CBRE report said. In the future, the emirate aims to attract 100,000 tourists when its Qidfa development opens.

Tourism has become a key driver of the UAE’s diversification efforts and a major contributor to its GDP. With momentum gathering across the country, Emirates Tourism is actively investing in new initiatives, strengthening stakeholder relationships, launching global events and capitalizing on the growing MICE segment to attract tourists.

read: Dubai to welcome 4.67 million tourists in Q1 2023