UAE Hospitality Market Overview
Market Size in 2024: USD 23.9 Billion
Market Size in 2033: USD 37.7 Billion
Market Growth Rate 2025-2033: 5.2%
According to IMARC Group’s latest research publication, “UAE Hospitality Market Size, Share, Trends and Forecast by Components, Material Used, End User, and Region, 2025-2033”, the UAE hospitality market size reached USD 23.9 billion in 2024. Looking forward, IMARC Group expects the market to reach USD 37.7 billion by 2033, exhibiting a growth rate (CAGR) of 5.2% during 2025-2033.
Our report includes:
- Market Dynamics
- Market Trends and Market Outlook
- Competitive Analysis
- Industry Segmentation
- Strategic Recommendations
Grab a sample PDF of this report: https://www.imarcgroup.com/uae-hospitality-market/requestsample
UAE Hospitality Market Trends & Drivers:
One big reason the UAE hospitality scene keeps buzzing is the sheer volume of international travelers flocking to the country’s cities and top resorts. Dubai alone welcomed around 18.7 million international visitors recently, and the country posted more than 8.4 million hotel guests in just one quarter, pushing hotel occupancy rates to over 81%. Average daily room rates are climbing, and luxury stays remain in high demand, with nearly two-thirds of new hotels categorized as five-star. Mega events like Expo 2020, plus evolving travel patterns post-pandemic, have supercharged guest volumes and spending, turning the UAE into one of the world’s most vibrant tourism destinations.
Another big force behind UAE hospitality growth is robust government support and policy innovation. The National Tourism Strategy sets ambitious targets, aiming for 40 million annual hotel guests and huge contributions to GDP. A range of fresh initiatives—think new visa categories, major infrastructure investments, and industry-specific training programs—keeps the UAE business-friendly and ultra-accessible. Programs like the “Summer Hospitality Camp” even train young Emiratis for real-world hospitality roles, boosting local employment and skills. With both federal and emirate-level bodies active, public and private sectors are collaborating to keep the sector globally competitive, resilient, and investor-attractive.
Emerging hospitality trends are reshaping what guests expect and how companies operate. Tech-enabled service—like smart room controls and seamless mobile check-ins—is almost a baseline now, as travelers crave more personalized, efficient experiences. At the same time, there’s a surge in “affordable luxury,” with mid-scale brands and branded residences expanding to attract cost-conscious millennials and long-stay visitors. Operators also focus on sustainability and unique, story-driven stays, with new properties designed around memorable themes and immersive experiences. Dubai and Abu Dhabi lead in both luxury developments and these innovative, experience-driven offerings, responding quickly to what today’s travel-savvy guests are looking for.
How AI is Reshaping the Future of UAE Hospitality Market
Artificial intelligence is shaking up hospitality in the UAE, making service smoother, smarter, and more personalized than ever. Today, about half of the country’s hotels report that AI streamlines operations—think robot concierges at luxury hotels, AI-powered chatbots handling booking questions, and smart room controls that tailor lighting and temperature to each guest’s preferences. At The Emirates Palace Mandarin Oriental, AI analytics help reduce energy usage across the extensive property, ramping up sustainability while keeping comfort high. With government backing—like Dubai’s ambition to be a 100% AI-powered smart city—hotels are rolling out everything from facial recognition check-ins to virtual concierges, proving the UAE is at the forefront of digital hospitality transformation.
We explore the factors driving the growth of the market, including technological advancements, consumer behaviors, and regulatory changes, along with emerging UAE hospitality market trends.
UAE Hospitality Industry Segmentation:
The report has segmented the market into the following categories:
Type Insights:
- Chain Hotels
- Independent Hotels
Segment Insights:
- Service Apartments
- Budget and Economy Hotels
- Mid and Upper Mid-scale Hotels
- Luxury Hotels
Regional Insights:
- Dubai
- Abu Dhabi
- Sharjah
Others
Recent News and Developments in UAE Hospitality Market
- July 2025: Dubai’s hospitality industry sets a new high, leveraging AI-powered guest personalization, facial recognition check-ins, and smart room controls in leading hotels like Atlantis The Royal, making seamless, tech-driven stays the new standard for travelers.
- June 2025: Food and beverage innovation takes center stage in the UAE, with cloud kitchens, delivery-only restaurant brands, and AI-driven menu engineering surging across major cities. This shift allows quicker service and personalized dining, driven by growing local demand and tech-savvy consumers.
- May 2025: The Hotel Show Dubai transforms the city into a hub of hospitality innovation, spotlighting eco-friendly water and energy-saving solutions, intelligent lighting systems, and waste transformation technology. Exhibitors show how responsible choices can deliver both environmental and business wins for hotels.
Competitive Landscape:
The competitive landscape of the industry has also been examined along with the profiles of the key players.
Note: If you require specific details, data, or insights that are not currently included in the scope of this report, we are happy to accommodate your request. As part of our customization service, we will gather and provide the additional information you need, tailored to your specific requirements. Please let us know your exact needs, and we will ensure the report is updated accordingly to meet your expectations.
About Us:
IMARC Group is a global management consulting firm that helps the world’s most ambitious changemakers to create a lasting impact. The company provides a comprehensive suite of market entry and expansion services. IMARC offerings include thorough market assessment, feasibility studies, company incorporation assistance, factory setup support, regulatory approvals and licensing navigation, branding, marketing and sales strategies, competitive landscape and benchmarking analyses, pricing and cost research, and procurement research.
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