The UAE tourism sector has achieved remarkable recovery rates since the beginning of the year, as shown by the sector’s key performance indicators during 2022’s first half.
Latest research conducted by Colliers International Consultancy stated that the total number of hotel guests increased during the first half of 2022 to about 10.5 million, up from 8.3 million during the first half of 2021.
Abu Dhabi, Dubai and Sharjah
More than 9.5 million guests stayed at hotels in Abu Dhabi, Dubai, and Ras Al Khaimah last year. Of these, 7.12 million remained in Dubai, 1.84 million stayed in Abu Dhabi, and 521,000 stayed in Ras Al Khaimah.
While Abu Dhabi, Dubai, and Sharjah saw the most significant gains in occupancy rates and available room revenues during the year’s first half, the survey found that all cities in the UAE saw an improvement in performance compared to 2021. Compared to the same period last year, it increased by 9 percent, reaching 71 percent this year from 62 percent.
Hotel occupancy rates in Abu Dhabi rose by 31 percent year-over-year in the second quarter of 2022, with Dubai hotels coming in a close second. Hotel growth in Dubai is at 30 percent, followed by Sharjah (15 percent), and Ras Al Khaimah (5 percent).
Average Daily Rates
The survey revealed that the average daily rate of hotels in the United Arab Emirates rose by 54 percent in Dubai, 35 percent in Abu Dhabi, 53 percent in Sharjah, 14 percent in Ras Al Khaimah, and 6 percent in Fujairah during the second quarter of this year, compared to the same quarter of 2021.
The report expected that the number of rooms available at hotels under well-known UAE chains would rise to 116,800 by the end of the second quarter of 2022, with 2,466 new rooms opening in Dubai’s hotels in the first half of 2022 and 1,300 more luxury rooms anticipated for the second.
With 282 rooms in Sharjah, 696 rooms in Ras Al Khaimah, and 175 rooms in Fujairah, the report predicted that the total number of hotel rooms in the country carrying internationally recognized brands would reach 122,000 by the end of this year, 132,000 by the end of next year, and 141,000 by the end of 2024.
Tourism Spending
World Tourism Organization data showed that even with the COVID-19 outbreak, residents of the UAE spent about US$ 21.8 bn (80 bn dirhams) in 2021. At the same time, the country ranked first in the MENA and sixth in the world in terms of per capita spending on tourism and travel.
The Organization specified that the cost comprised payments for international guests already living in the host country. These costs consist of money spent on things like services and commodities, as well as larger payments made to national airlines. The research also stated that typical UAE tourists spent around US$ 2,500.
In 2019, over 18 million people left the UAE to visit overseas. By 2022, however, that figure was expected to drop to around 6.3 million.
Strong recovery rates in the tourism sector continued during the first half of 2022, which proves that demand for tourism has picked up both locally and internationally and that the industry is back to doing what it did before the global health crisis. In addition, mega events like Expo 2020 Dubai and new hospitality and entertainment options helped to restore the UAE’s once-dominant position among the world’s best tourist destinations.