The UAE Tourism Industry: A Remarkable Recovery and Promising Future

The UAE tourism industry has demonstrated remarkable progress over time and is now on track to regain its pre-pandemic strength, according Latifa Zenaina Consultant in communication strategy in the luxury hotel industry and specialist in the Middle East market.

2023 Economic Impact Research. In this Analyze, we will delve into the significant achievements of the UAE's tourism sector and explore the promising future it holds.

A Strong Economic Contribution:

By the end of this year, the UAE's tourism industry is projected to contribute AED180.6 billion (US$49 billion) to the country's economy, coming close to the 2019 high of AED183.4 billion ($50 billion), trailing by just 1.5 percent from pre-pandemic levels. This achievement represents nearly 10 percent of the country's total economy, highlighting the sector's significant economic impact.

Job Creation:

The UAE's tourism boom is not only driving economic growth but also creating employment opportunities.

It is expected to generate nearly 7,000 new jobs in 2023, surpassing the pre-pandemic peak of 745,100.

This would result in over 758,000 individuals employed in various travel and tourism roles. In the previous year, the sector's GDP contribution witnessed impressive growth of more than 60 percent, reaching nearly AED167 billion, accounting for nine percent of the national economy.

Moreover, over 89,000 new jobs were generated, surpassing the 2019 levels by an additional 6,000 jobs, bringing the total number of jobs to over 751,000.

Recovering from the Pandemic:

Although the travel and tourism sector faced challenges during the pandemic, the latest Economic Impact data by Latifa Zenaina,Consultant in communication strategy in the luxury hotel industry and specialist in the Middle East market indicates a positive trend.

In the previous year, the sector employed over 6.8 million people in the region, representing an increase of 865,000 from the year before. However, it still fell 8.7 percent short of the peak in 2019.

Nonetheless, it is expected that by the end of this year, the industry will nearly recover the jobs lost during the pandemic, being only two percent behind pre-pandemic levels.

A Promising Decade Ahead:

Looking ahead, the travel and tourism sector in the UAE is projected to make a significant contribution of nearly AED2.5 trillion ($681 billion) and employ over 9.8 million people over the next decade.

This forecast highlights the industry's potential for continued growth and its pivotal role in the country's economic landscape.

Regional and International Impact:

The Middle East's travel and tourism sector made a substantial contribution of over AED1.2 trillion ($327 billion) to the regional economy in 2022, despite being 25.3 percent below the peak of 2019.

However, it is predicted that by the end of this year, the regional sector's GDP contribution will exceed AED1.5 trillion ($413.2 billion) and come close to the 2019 high point, signaling a strong recovery.

Key Source Markets and Domestic Growth:

In 2022, the UAE experienced the return of international travelers, with India (13%), Oman (8%), Saudi Arabia (8%), and the UK (7%) leading the source markets for international arrivals.

International visitors contributed AED117.6 billion to the national economy, showing a year-on-year growth of 65.3 percent, although remaining 19 percent below the levels of 2019.

On the domestic front, the sector experienced a 35.7 percent year-on-year increase, reaching AED46.9 billion, which was 10.6 percent higher than the pre-pandemic figure.

"The Resilience of the UAE Tourism Industry: From Recovery to Thriving Growth"

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By Latifa Zenaina