UAE Hotel Occupancy Among Highest Globally, Boosting Economy and Tourism

Published on December 19, 2025

The UAE hotel industry was in peak demand in 2025, with one of the best circumstances of the world’s hotel industries in number of occupancy. Approximately 79.3% of hotels in UAE were occupied in 2025, and the number was 78% last year. The increase in the demand of hotels in UAE is due to the popularity of the country and the expanding hotels, infrastructure, and investments in the hotel industry.

Tourism’s Impact on the UAE Economy

Tourism has become a key driver of the UAE’s economy, contributing 13% to the nation’s GDP. In 2024, this contribution was valued at AED 257.3 billion, showcasing the sector’s significant role in the country’s economic diversification. The tourism industry also supports over 920,000 jobs across various sectors, from hospitality to transportation.

The UAE government has ambitious plans for further growth in tourism. Within the next five years, authorities aim to increase tourism’s share of the GDP to 17%. This goal will be achieved through a combination of strategic investments, expansion in aviation, and enhanced marketing efforts to attract both leisure and business travelers from around the world.

Rising Hotel Revenues and Expanding Facilities

The UAE’s hospitality industry is experiencing a consistent upward trajectory. In the first ten months of 2025, hotel revenues in the country totaled AED 89 billion. This figure highlights the success of the UAE’s hospitality offerings and its ability to draw international tourists.

A growing number of hotels are available, with over 1,243 establishments offering more than 216,000 rooms across the nation. These figures point to an expanding capacity, designed to accommodate the increasing number of visitors to the UAE each year.

Government Support and Ongoing Investments

The UAE government continues to prioritize tourism as a central pillar of its economic strategy. Tourism investments saw a marked increase in 2024, reaching AED 32.2 billion, up from AED 28.8 billion the previous year. Projections indicate that tourism investments will grow further in 2025, reaching AED 35.2 billion.

This investment is seen across various areas, including infrastructure, attractions, and marketing. The goal is to solidify the UAE’s position as a global destination for tourists and entrepreneurs alike, offering diverse attractions and world-class services.

The “World’s Coolest Winter” Campaign

In addition to international tourism, the UAE has also been working to boost domestic travel. The “World’s Coolest Winter” campaign, launched recently, focuses on promoting local tourism and supporting entrepreneurship. This initiative aims to highlight the unique offerings of the UAE, especially during the cooler months, attracting both residents and visitors. With the slogan “Our Winter is Entrepreneurial,” the campaign encourages travel within the UAE while boosting opportunities for local businesses to grow and thrive.

Tourist Guide for Visiting the UAE

The UAE is a must-visit destination for travelers seeking luxury, culture, and adventure. Here’s a guide to help visitors make the most of their trip:

1. Best Time to Visit: The cooler months, from November to March, offer the best weather for outdoor activities and exploring the country’s landmarks.
2. Top Attractions: Visitors should not miss the iconic Burj Khalifa, the world’s tallest building, or the Palm Jumeirah, a man-made island with luxurious resorts. The Louvre Abu Dhabi and the Dubai Museum are perfect for those interested in art and history.
3. Accommodation Options: The UAE offers a wide range of accommodations, from budget-friendly hotels to luxurious 5-star resorts. Many of the hotels in Dubai and Abu Dhabi offer stunning views and high-end amenities.
4. Cuisine: The UAE is a food lover’s paradise, offering a diverse range of cuisine. From traditional Middle Eastern dishes to international fare, there’s something for everyone.
5. Shopping: Dubai is renowned for its shopping malls, such as The Dubai Mall and Mall of the Emirates. These malls feature global luxury brands, entertainment options, and gourmet dining experiences.
6. Transportation: The UAE has a well-connected transport system, including the Dubai Metro, taxis, and buses. Many areas are also pedestrian-friendly, with walking tours available for exploring the cities.
7. Cultural Etiquette: When visiting the UAE, it’s essential to respect the local customs and culture. Dress modestly, especially in public spaces and religious sites, and be mindful of local customs regarding public behavior.
8. Safety and Security: The UAE is one of the safest destinations for travelers. With low crime rates and a stable environment, visitors can explore the country with peace of mind.

Tourism Outlook for 2026 and Beyond

Over the next decade or so, the UAE will likely continue growing as a global tourism frontrunner. With more investments going into infrastructure, building new attractions, and marketing, the UAE is likely to become the most exclusive destination for tourists and entrepreneurs alike. The continuous growth of hotel occupancy rates and the revenue generated from tourism indicate a very resilient industry and show that it still has a lot of potential for growth.

Visitors and the traveler’s of the UAE will continue to experience the best of the best in the tourism industry and as a result, the UAE will remain in the top tier destinations for travel, business and leisure.