UAE’s Tourism Boom: How Record-Breaking Visitor Numbers and Hotel Performance Are Reshaping the Nation’s Economy!

Published on December 22, 2025

The United Arab Emirates (UAE) has continued to experience impressive growth in its tourism sector throughout 2025. With an increase in visitor numbers, improved accommodation performance, and rising aviation traffic, tourism has solidified its role as a major contributor to the UAE economy. The sustained investment in infrastructure, enhanced connectivity, and the development of tourism destinations have played a crucial part in the country’s tourism success story.

Tourism’s Significant Contribution to the Economy

In 2025, tourism and travel activities generated a remarkable AED257.3 billion for the UAE, equating to 13% of the nation’s gross domestic product (GDP). This substantial contribution is a clear indicator of the growing importance of the tourism sector, which plays a vital role in diversifying the UAE’s non-oil economy. The continued influx of international visitors, paired with an expanded hospitality sector, has ensured that tourism remains a key pillar of the UAE’s economic foundation.

The growing contribution of the tourism sector is a direct result of strategic investments in infrastructure, including the expansion of airports, hotels, and leisure attractions. Additionally, the diversification of the tourism offering, including both leisure and business travel options, has attracted a broader range of international visitors. As a result, the UAE has become an increasingly appealing destination for tourists from across the globe.

Growth in Hotel Performance and Capacity

The UAE’s hotel sector experienced substantial growth in 2025, welcoming 23.27 million guests during the first nine months of the year, which represents an increase of 4.9% compared to the same period in 2024. This growth in hotel bookings was mirrored by a significant rise in hotel revenues, which climbed by 7.2%, reaching over AED35.9 billion.

Throughout this period, the average hotel occupancy rate across the UAE reached 79.2%, with a notable 3.5% increase in the number of occupied rooms, totaling 46.17 million. This suggests a steady demand for hotel accommodation, which continues to drive the sector forward. Furthermore, the average daily room rate saw an uptick of 4.2%, reaching AED557, a figure that reflects both the quality of accommodation and the rising demand from visitors.

The UAE’s hospitality industry continues to benefit from a well-established infrastructure, which includes 216,248 hotel rooms spread across 1,246 establishments. The strategic expansion of hotel capacity and improvements in service quality have allowed the country to cater to a diverse range of visitors, from budget travelers to luxury tourists.

Aviation Growth and Investment

Air travel has remained a key element of the UAE’s tourism growth in 2025. The nation’s major airports—Abu Dhabi Airports, Dubai International Airport, and Sharjah International Airport—handled a combined total of 108.59 million passengers by the end of September 2025. This impressive figure highlights the UAE’s role as a critical hub for global aviation, supporting the flow of international visitors and reinforcing the country’s position as a top tourism destination.

In line with this growth, several significant tourism and leisure developments were launched or announced during the year. For example, the AED2 billion Therme Dubai wellness destination promises to provide a new attraction for visitors seeking health and wellness experiences. In addition, the opening of Abu Dhabi’s interactive Butterfly Sanctuary, the Wynn Al Marjan Island resort in Ras Al Khaimah, and the upcoming Avani+ Fujairah Resort—set to open in 2028—are all part of a wider strategy to diversify the tourism offering in the UAE.

Moreover, ongoing projects like Sharjah’s AED3.5 billion Al Tay Hills development, the second phase of the Umm Al Qaiwain Creek Waterfront, and the announcement of a Disney theme park and resort on Yas Island further underline the UAE’s commitment to expanding its tourism infrastructure.

Success of National Campaigns and International Recognition

The UAE’s tourism sector also enjoyed success in international marketing campaigns. The fifth edition of the World’s Coolest Winter campaign, which concluded in February 2025, generated nearly AED1.9 billion in hotel revenues. This represented an 86.9% increase from the previous edition, with the number of visitors rising by 62% to exceed 4.4 million.

The campaign reached an astounding 224.7 million people globally, amplifying the UAE’s appeal as a top travel destination. The initiative’s focus on green tourism helped raise awareness about the country’s commitment to sustainable travel practices, further improving its global image.

International recognition of the UAE’s tourism efforts also came in the form of its renewed membership on the Executive Council of the UN World Tourism Organisation (UNWTO) for the 2025–2029 term. In addition, Shaikha Nasser Al Nowais made history by being elected the Secretary-General of UN Tourism for the 2026–2029 term, becoming the first woman to hold this prestigious position.

As a testament to the UAE’s ongoing efforts to improve its tourism offerings, Masfout village was named the Best Tourism Village in the World for 2025. Additionally, the UAE ranked among the world’s top seven destinations for international tourism spending, highlighting the country’s prominence as a leading global tourism hub.

A Promising Future for UAE Tourism

The UAE’s tourism sector has demonstrated remarkable resilience and growth in 2025, with strong performances across various segments including aviation, hospitality, and leisure development. The country’s ongoing investments in tourism infrastructure and its commitment to sustainable growth ensure that it will remain a key player on the global tourism stage for years to come.

With new projects, innovative tourism campaigns, and international accolades, the UAE is poised to continue attracting both business and leisure travelers, contributing to its economic diversification and strengthening its position as a global tourism leader.