Dubai tourism boom pays dividends for city’s hotel sector
Buoyed by record-breaking tourism growth, Dubai’s hotel industry ranked among the world’s top performers in the first half of 2024
Dubai's hotel sector has enjoyed one of its best half-yearly performances to date, with the industry reporting strong gains across all key metrics on the back of record-breaking growth in international visitor arrivals and continued expansion of the city's hotel infrastructure. The industry’s impressive performance combined with strategic tourism initiatives has positioned the emirate as a global hospitality leader in 2024.
Impressive growth in hotel metrics
The industry continued its impressive run from 2023 in the first half of the year, with the citywide average occupancy rate reaching 78.7%, marking a 1% increase from the previous year. More importantly, the 2024 benchmark placed Dubai among the top-performing cities globally during the six-month period.
The total number of occupied room nights reached 21.35 million, reflecting a 3% increase from the 20.73 million recorded in the first half of 2023. The rise in occupancies was accompanied by an increase in the average daily rate (ADR), which climbed by 4% year on year (YoY) to AED 558.
Revenue per available room (RevPAR) also showed a healthy increase, rising by 6% from AED 415 in H1, 2023, to AED 439 in H1, 2024.
Expansion of hotel infrastructure
These figures highlight Dubai's success in attracting a growing number of tourists and maintaining high levels of occupancy, even as the city continues to expand its hotel inventory. The available number of guestrooms in Dubai has grown substantially over the past 12 months, rising from 148,689 in June 2023 to 150,879 12 months later. The number of hotels operating in Dubai has also increased, rising from 810 to 823 over the same period.
The first half of the year saw the opening of several high-profile hotels in the emirate, with more planned for the next year, including Ciel, the world’s tallest hotel, which ranks as The First Group’s most ambitious project to date.
Rising 365 metres above Dubai Marina’s world-famous waterway, the flagship development will house 1,004 guestrooms and suites, a range of signature F&B outlets and unique amenities including a glass observation deck, which will feature an infinity pool and provide incredible 360-degree vistas of the Arabian Gulf and Dubai’s skyline.
Record-breaking international visitor numbers
The hotel industry’s impressive performance was boosted by the surge in international visitor arrivals to Dubai in the six months to June.
Dubai welcomed 9.31 million international overnight visitors during this time, marking a 9% increase over the 8.55 million arrivals reported during the same period in 2023. The visitor surge has been instrumental in driving demand for hotel accommodation and boosting the industry’s overall performance.
The city's success in attracting international visitors is also a direct result of strategic efforts by the Dubai Department of Economy and Tourism (DET) to promote the city globally.
Tourism diversification strategy pays off
The sector’s growth can also be attributed to the success of Dubai’s tourism diversification strategy. By broadening its appeal beyond traditional source markets, Dubai has been able to attract an increasingly diverse number of visitors. The growth in visitor numbers from North-East and South-East Asia, particularly driven by the recovery of travel from China, has been notable in 2024. These efforts are part of Dubai's broader strategy to establish itself as a global hub for both leisure and business tourism, in line with the objectives outlined in the Dubai Economic Agenda (D33).
Business events boost demand for quality accommodation
Business events have also proven a significant driver of demand for hotel accommodation in Dubai, contributing to the overall growth of the city's hospitality sector. In the first half of the year, Dubai hosted several major industry exhibitions that drew large numbers of visitors and exhibitors, boosting hotel occupancy rates. Notable events included Gulfood, which attracted 150,000 attendees, Arabian Travel Market with 46,000 attendees, and the 30th Dubai International Boat Show. The success of these events further underlines Dubai's position as a premier destination for business travellers.