UAE Hotels Had a Record 2024. Now They Face Global Recession Risks

Key Points

• UAE hotels achieved record revenues of 45 billion Emirati Dirhams in 2024, with occupancy rates reaching 78% and guest numbers rising by 9.5%.
• Dubai saw a 4% increase in international visitors in early 2025, but global travel growth forecasts have been reduced due to economic uncertainties.
• Domestic tourism played a crucial role in sustaining the UAE's hotel sector during global travel downturns, accounting for significant portions of hotel guests in 2020.

Summary

The UAE's hotel sector enjoyed record revenues in 2024, with occupancy rates among the highest globally. However, the sector now faces potential challenges due to lowered global travel growth forecasts for 2025. Dubai remains a key tourism hub with a rise in international visitors, while domestic tourism has historically supported the sector during global downturns.