Dubai leads the way for tourism sector growth in Q1

Dubai leads the way for tourism sector growth in Q1

Dubai welcomed 3.1 million tourists in the first two months of 2023, a 42% YOY increase 

According to the latest JLL UAE Real Estate Market Overview Report, the UAE’s hospitality sector witnessed strong growth in the first quarter of 2023.

The growth was fuelled by a steady influx of tourists from three top source markets, namely India, Russia and Oman.

The rise in inbound tourism also benefited the lower and mid-tier hospitality segments, which saw gains of between 7-8 basis points in occupancy and RevPAR (revenue per available room) of 15% for the first two months of the year. In addition, Dubai and Abu Dhabi’s hosting of events such as GulfFood and IDEX aided operators in meeting performance targets.

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JLL MENA associate, research Faraz Ahmed said: “While all sectors continued to build on the performance of 2022, the year’s well-planned calendar of events, coupled with the continuous increase in tourist numbers, have firmly placed the hospitality sector on a growth track, reaffirming its position as one of the strongest pillars supporting the UAE’s economic acceleration. However, macroeconomic volatilities continue to influence global travel trends, making it critical for operators to employ effective revenue management strategies to boost topline revenues, particularly those in the luxury segment.”

Dubai’s hotel stock climbed to 150,000 keys with the delivery of around 2,000 rooms. Around 8,000 keys are expected to be delivered in the coming year. In comparison, Abu Dhabi's hotel supply completions were limited, with around 200 keys added to the existing inventory, bringing the total stock to 32,500 rooms. The capital’s future supply pipeline for the year remains modest at around 200 keys.

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