Dubai to Add Over 11,300 Hotel Rooms by 2027, Boosting Tourism & Luxury Stays

Strengthening tourism is a linchpin driving economic growth in the emirate. In 2024, overnight visitors to Dubai reached 18.72 million, an increase of 9.1% over the preceding year. This growth accounted for AED 236 billion to the economy of the UAE, thus forming 12% of its national GDP.

Global Recognition

Dubai’s standing and performance related to tourism and hospitality received global recognition. Towards the end of 2024, Dubai was awarded the honor for the world leading shopping and exhibition destination during the 31st Annual World Travel Awards. Mina Rashid was recognized as “the world’s leading cruise port,” while Dubai International Airport was crowned “world’s leading airport.”

Occupancy Statistics

Occupancy: The occupancy rates of Dubai hotels in 2024 hovered around 78%. This figure was 1% higher as compared to that for the previous year, where the Luxury and Upper Mid-scale segments experienced the greatest increase, which was 3% and 2.4% respective.

Average Daily Rates (ADR): ADR for the year 2024 was approximately AED 690, showing a very minor increase of 0.2% from 2023. ADR for the Luxury segment showed a 1.9% decrease while occupancy in the segment rose by 3%, indicating unabated demand.

Future Developments

The addition of some 11,300 hotel rooms expected to be opened by 2027, including 4,620 additional rooms expected in 2025, indicates Dubai’s strategic resolve in strengthening the hospitality infrastructure. This expansion is also in sync with Dubai Economic Agenda D33, which envisions placing the city among the top three global tourism destinations.

In brief, the ambitious expansion plans for hotel capacity clearly testify to Dubai’s commitment to catering to an increasing number of tourists, further consolidating its position among the global leaders in tourism and hospitality.

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