Report Overview

UAE Travel and Tourism Market – Industry Trends & Forecast Report, 2031

UAE Travel and Tourism Market size was estimated at USD 61.3 Billion in 2024. During the forecast period between 2025 and 2031, UAE Travel and Tourism Market size is projected to grow at a CAGR of 7.55% reaching a value of USD 102.03 Billion by 2031. Prominent drivers of the market include substantial investments in infrastructure, the presence of luxury resorts, spas, fine dining establishments, and high-end retail outlets, along with strong government backing through strategic initiatives, policies, and incentives aimed at boosting tourism. In 2025, the sector is expected to achieve another record year, contributing AED 267.5 billion to the UAE economy—accounting for nearly 13% of the GDP—and supporting over 925,000 jobs. International visitor spending is projected to reach AED 228.5 billion, 37% higher than the pre-pandemic peak in 2019, while domestic visitor expenditure is forecast to rise to AED 60 billion. Emerging travel trends such as nostalgia tourism and sleep tourism are gaining popularity among UAE residents, with many travelers seeking meaningful, restful, and culturally rich experiences. A significant portion of travelers, especially families, are choosing destinations tied to childhood dreams and prioritizing wellness, with 81% valuing pampering, 71% preferring beachside relaxation, and 62% reporting better sleep-in hotels. Additionally, eco-conscious travel is becoming more prominent, with 84% of UAE travelers seeking sustainable options. The market is also seeing a shift toward digital and forward-planned travel, with a large majority preferring to book trips online while still valuing personalized customer support. By 2035, the sector is projected to contribute nearly AED 287.8 billion to the national economy and support over 1 million jobs, reaffirming its central role in the UAE’s long-term vision for economic diversification and sustainable tourism development.

Travel and Tourism – Overview

Travel and tourism refers to the activities of people traveling to and staying in places outside their usual environment for leisure, business, or other purposes for a limited duration. It encompasses a wide range of services and industries—including transportation, accommodation, food and beverage, entertainment, and cultural experiences—that support and enhance the travel experience. The sector plays a vital role in global and local economies by generating employment, fostering cultural exchange, and contributing significantly to GDP through both domestic and international spending.

UAE Travel and Tourism Market                                           

Growth Drivers

Government’s Initiatives and Rapid Infrastructure Development

The UAE continues to implement forward-thinking tourism strategies to elevate visitor experiences and boost market demand. Landmark projects such as Dubai Expo 2020, Dubai Parks and Resorts, the Louvre Abu Dhabi, and the futuristic Marsa Al Arab reflect the nation's dedication to innovation and excellence in the tourism sector. A key example is the UAE Tourism Strategy 2031, launched under the 'Projects of the 50' initiative. This ambitious plan aims to increase the tourism sector’s GDP contribution to AED 450 billion, with an annual growth target of AED 27 billion. It also seeks to attract AED 100 billion in tourism investments, position the UAE among the world's top tourist destinations, and host 40 million hotel guests annually. The strategy outlines 25 targeted initiatives and policies to accelerate tourism development and enhance the country’s global competitiveness.

Challenges

Environmental Concerns

Environmental challenges pose significant restraints on the growth of the UAE Travel and Tourism Market. Issues such as water scarcity, high energy consumption, and waste management put pressure on the region’s fragile ecosystem. The harsh desert climate and rising temperatures also affect tourist comfort and outdoor activities. Additionally, rapid urbanization and infrastructure development can lead to habitat loss and increased pollution, which may deter eco-conscious travelers. These factors compel the industry to adopt sustainable practices, but the environmental concerns remain a key barrier to achieving long-term, balanced growth in UAE Travel and Tourism Market.

Impact of Escalating Geopolitical Tensions on UAE Travel and Tourism Market

Escalating geopolitical tensions could significantly impact the growth of UAE Travel and Tourism Market by creating uncertainty and reducing traveler confidence. Heightened regional conflicts or diplomatic disputes may lead to travel advisories, flight cancellations, and stricter security measures, discouraging tourists and investors. These tensions can also disrupt international relations and trade partnerships crucial for tourism growth. Additionally, the perception of instability may shift traveler preferences to safer destinations, causing a decline in visitor numbers and revenue.

UAE Travel and Tourism Market

Segmental Coverage

UAE Travel and Tourism Market – By Type

Based on type, UAE Travel and Tourism Market is divided into Domestic Tourism, Inbound Tourism, and Outbound Tourism segments. The inbound tourism segment accounts for largest share of UAE Travel and Tourism Market by type, driven by a significant rise in international visitor arrivals and spending. According to the World Travel & Tourism Council (WTTC), international visitor expenditure is projected to reach USD 62.2 billion (AED 228 billion) by 2025, outpacing domestic tourism spending considerably. The UAE’s strategic focus on attracting global tourists to key destinations such as Dubai, Abu Dhabi, and Ras Al Khaimah has been further strengthened by enhanced connectivity, including major airline partnerships like Emirates and Philippine Airlines. Additionally, initiatives such as premium sports tourism experiences organized by agencies like ES Sport contribute to promoting the UAE as a world-class destination for international travelers. With inbound tourism playing a pivotal role, the sector is forecasted to contribute 13% to the national GDP and support over 925,000 jobs by 2025, reinforcing the UAE’s position as a leading global hub for travel and tourism.

UAE Travel and Tourism Market – By Purpose of Travel

UAE Travel and Tourism Market by purpose of travel is divided into Leisure & Recreation, Business Travel, Religious Tourism, Medical Tourism, and  Education & Training segments. The leisure & recreation segment holds the highest share in UAE Travel and Tourism Market by purpose of travel, driven by the country’s commitment to becoming a world-class entertainment destination. The UAE attracts millions of visitors annually with its iconic landmarks such as the Burj Khalifa, Sheikh Zayed Grand Mosque, luxurious shopping malls, pristine beaches, cultural festivals, and desert adventures. Dubai and Abu Dhabi, in particular, have positioned themselves as global hotspots for leisure through mega-events, entertainment zones, and theme parks. Government initiatives focused on infrastructure development, tourism-friendly policies, and investment in large-scale attractions continue to strengthen this segment. The UAE’s strategic location—within a few hours’ flight of major global cities—further enhances its appeal. As tourist expectations evolve, the leisure and recreation sector remains the key driver, significantly contributing to tourist arrivals, extended stays, and repeat visits.

UAE Travel and Tourism Market – By Mode of Transport

On the basis of mode of transport, UAE Travel and Tourism Market is segmented into Air Travel, Road Travel, and Sea Travel/Cruise Tourism.

Competitive Landscape

Major players operating in UAE Travel and Tourism Market include Emirates Group, Etihad Airways, Emaar Hospitality Group, Jumeirah Group, Dubai Tourism (DTCM), Abu Dhabi Department of Culture and Tourism (DCT), dnata Travel Group, Atlantis The Palm, Rotana Hotels and Resorts, and Flydubai. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In April 2024 - The World Travel & Tourism Council (WTTC) released its Economic Impact Research (EIR), highlighting a landmark year for the UAE’s travel and tourism industry. The report revealed unprecedented growth across critical indicators, including GDP contribution, employment, and visitor spending. This exceptional performance underscores the UAE’s ongoing efforts to position itself as a premier global tourism hub, with destinations like Dubai, Abu Dhabi, and Ras Al Khaimah playing a central role in attracting international travelers and setting new industry benchmarks.

Scope of the Report

By Type

• Domestic Tourism

• Inbound Tourism

• Outbound Tourism

By Purpose of Travel

• Leisure & Recreation

• Business Travel

• Religious Tourism

• Medical Tourism

• Education & Training

By Mode of Transport

• Air Travel

• Road Travel

• Sea Travel/Cruise Tourism

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. UAE Travel and Tourism Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. Government Initiatives & Infrastructure Development
         2. Strategic Location & Connectivity
         3. Diverse Tourism Offerings
      2. Restraints
         1. Environmental Challenges
         2. Balancing Development & Conservation
      3. Opportunities
         1. Sustainable Tourism Growth
         2. Cultural & Community-Based Tourism
      4. Challenges
         1. Climate Change Impacts
         2. Security Concerns
   3. Technological Advancements/Recent Developments
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4. UAE Travel and Tourism Market: Marketing Strategies
5. UAE Travel and Tourism Market: Pricing Analysis
6. UAE Travel and Tourism Market Overview
   1. Market Size & Forecast, 2019–2031
      1. By Value (USD Billion)
   2. Market Share & Forecast
      1. By Type
         1. Domestic Tourism
         2. Inbound Tourism
         3. Outbound Tourism
      2. By Purpose of Travel
         1. Leisure & Recreation
         2. Business Travel
         3. Religious Tourism
         4. Medical Tourism
         5. Education & Training
      3. By Mode of Transport
         1. Air Travel
         2. Road Travel
         3. Sea Travel/Cruise Tourism
7. Competitive Landscape
   1. List of Key Players and Their End Users
   2. UAE Travel and Tourism Company Market Share Analysis, 2024
   3. Competitive Benchmarking, By Operating Parameters
   4. Key Strategic Developments (Mergers, Acquisitions, Partnerships)
8. Impact of Escalating Geopolitical Tensions on UAE Travel and Tourism Market
9. Company Profiles (Company Overview, Financial Matrix, Competitive landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, SWOT Analysis)
   1. Emirates Group
   2. Etihad Airways
   3. Emaar Hospitality Group
   4. Jumeirah Group
   5. Dubai Tourism (DTCM)
   6. Abu Dhabi Department of Culture and Tourism (DCT)
   7. dnata Travel Group
   8. Atlantis The Palm
   9. Rotana Hotels and Resorts
   10. Flydubai
   11. Other Prominent Players
10. Key Strategic Recommendations
11. Research Methodology
    1. Qualitative Research
       1. Primary & Secondary Research
    2. Quantitative Research
    3. Market Breakdown & Data Triangulation
       1. Secondary Research
       2. Primary Research
    4. Breakdown of Primary Research Respondents
    5. Assumption & Limitation

*Financial information of non-listed companies will be provided as per availability

**The segmentation and the companies are subjected to modifications based on in-depth secondary for the final deliverable

List of Figures

Figure 1   UAE Travel and Tourism Market Segmentation

Figure 2   UAE Travel and Tourism Market Value Chain Analysis

Figure 3   Company Market Share Analysis, 2024

Figure 4   UAE Travel and Tourism Market Size, By Value (USD Billion), 2019–2031

Figure 5   UAE Travel and Tourism Market Share, By Type, By Value (USD Billion) 2019–2031

Figure 6   UAE Travel and Tourism Market Share, By Purpose of Travel, By Value (USD Billion) 2019–2031

Figure 7   UAE Travel and Tourism Market Share, By Mode of Transport, By Value (USD Billion) 2019–2031

List of Tables

Table 1      UAE Travel and Tourism Market Share, By Type, By Value (USD Billion) 2019–2031

Table 2      UAE Travel and Tourism Market Share, By Purpose of Travel, By Value (USD Billion) 2019–2031

Table 3      UAE Travel and Tourism Market Share, By Mode of Transport, By Value (USD Billion) 2019–2031

Table 4      Emirates Group Company Overview

Table 5      Emirates Group Financial Overview

Table 6      Etihad Airways Company Overview

Table 7      Etihad Airways Financial Overview

Table 8      Emaar Hospitality Group Company Overview

Table 9      Emaar Hospitality Group Financial Overview

Table 10    Jumeirah Group Company Overview

Table 11    Jumeirah Group Financial Overview

Table 12    Dubai Tourism (DTCM) Company Overview

Table 13    Dubai Tourism (DTCM) Financial Overview

Table 14    Abu Dhabi Department of Culture and Tourism (DCT) Company Overview

Table 15    Abu Dhabi Department of Culture and Tourism (DCT) Financial Overview

Table 16    dnata Travel Group Company Overview

Table 17    dnata Travel Group Financial Overview

Table 18    Atlantis The Palm Company Overview

Table 19    Atlantis The Palm Financial Overview

Table 20    Rotana Hotels and Resorts Company Overview

Table 21    Rotana Hotels and Resorts Financial Overview

Table 22    Flydubai Company Overview

Table 23    Flydubai Financial Overview