Dubai hospitality report

Over the past few decades, Dubai has undergone an unprecedented transformation, evolving into a global hub that blends tradition with modernity. The hospitality industry has played a pivotal role in shaping the city’s identity and welcoming millions from around the world.

There are several elements that contribute to Dubai’s hospitality’s success. The fusion of luxury, innovation, and warm Arabian hospitality has driven Dubai into a premier destination for travelers seeking not only luxuriousness but also authentic and enriching experiences.

This report studies Dubai’s hospitality industry, by examining the key factors that have fueled its growth, the challenges it faces, and the innovations driving its future. We surveyed 503 consumers to understand their preferences and behavior towards hotel stays and travel in Dubai.

Dubai’s rise as a global tourism and business hub began with the establishment of iconic hotel, which emerged as symbols of luxury against the backdrop of the Arabian Gulf. These early ventures laid the foundation for a hospitality sector that continuously strives for excellence.

From the innovative concept of underwater suites to constructing hotels that defy gravity, the city has consistently pushed the boundaries of what hospitality means. This commitment to innovation has not only attracted global attention but has also set a benchmark for other destinations aspiring to follow Dubai’s success.

Strategic initiatives: elevating the UAE’s tourism sector

The UAE is actively developing new tourism destinations beyond its major cities, expanding its appeal to a wider range of travelers.

Key initiatives include:

Promoting the UAE’s rich culturalheritage, showcasing its historicalsites, museums, and traditional arts and crafts that cater to culturally inclined tourists.
Enhancing adventure tourism by capitalizing on the UAE’s diverse landscapes, from deserts and mountains to beaches and islands.
Promoting ecotourism initiatives, highlighting the UAE’s conservation efforts and sustainable practices. This is attracting environmentally conscious travelers looking for eco-friendly experiences.

Catering to a wider range of interests and preferences, the UAE is expanding its meetings, incentives, conferences, and exhibitions (MICE) tourism offerings, leveraging its world-class infrastructure and venues for business travelers and event organizers.

In addition, the UAE is promoting its medical tourism sector, showcasing its advanced healthcare facilities and expertise to attract medical tourists seeking specialized treatments and procedures. According to the Medical Tourism Index, Dubai was ranked as the 6th best global destination for medical tourism.

Hosting major international sporting events and creating sports-focused destinations is also enabling the UAE to develop its sports tourism, attracting global sports enthusiasts and athletes.

The UAE is committed to sustainable tourism practices, ensuring the long-term viability of the sector. Hotels and tourism establishments are implementing green initiatives, such as reducing energy consumption, minimizing waste, and using sustainable materials. Restaurants and food outlets are also adopting ecofriendly practices by incorporating local and organic produce into their menus, supporting sustainable agriculture and reducing carbon footprint. To encourage responsible tourism, the UAE is promoting responsible tourism practices among visitors, educating them about environmental conservation and cultural sensitivity.

The UAE has made significant investments in tourism infrastructure, including the development of worldclass airports, hotels, resorts, theme parks and entertainment complexes. The $35 billion expansion of Al Maktoum International Airport in Dubai aims to position the emirate as a key global destination, featuring the world’s largest and busiest terminal serving 260 million travelers annually. The project is expected to take around 10 years to complete.

The Dubai Metro Blue Line will begin construction in 2025 with operations set to start in September 2029. It will include 14 new stations spanning 30 kilometers, further expanding Dubai’s Metro and tram network and improving connectivity across the city.

Additionally, Dubai is set to launch flying taxis by 2026, making it the first city in the world to introduce a commercial electric air taxi service. The Dubai Roads and Transport Authority has signed agreements with international companies to operate the taxis and
start building the necessary vertiports. A journey from Dubai International Airport to Palm Jumeirah is expected to take around 10 minutes only, significantly reducing travel times in the city. With flight distance reaching up to 161 km, these operations may also expand intercity in the future.

In 2024, Dubai was ranked first in the Arab World in the Leading Maritime Cities report and moved up to 11th globally. The city‘s success is attributed to its shipping centers, maritime technology, ports and logistics, competitiveness, and green technology efforts.

As part of the Department of Tourism and Commerce Marketing (DTCM), Dubai Cruise Tourism (DCT) also plays an important role in promoting Dubai as a global cruise destination. In collaboration with organizations like DP World, DCT ensures that visitors arriving in Dubai through the cruise terminals in Mina Rashid receive a smooth and world class experience.

Our survey revealed there is significant market potential for cruise tourism, with 62% of respondents likely to book a cruise in the coming year. While there is a substantial interest in this sector among most participants, a notable segment (17%) is unlikely to book a cruise next year. The most important factor for respondents when deciding to book a cruise in the Arabian Gulf is cost and value for money, with 47% prioritizing this aspect. Reputation and quality of the cruise line are crucial for 26% of respondents, while 17% consider the variety and appeal of destinations and ports as the key factor. 8% indicated the range and quality of on-board entertainment as the most important aspect.

The UAE has implemented a series of initiatives to simplify and streamline visa procedures for tourists, including visa on arrival and electronic visas for citizens of several countries, as well as extending tourist visa validity for many nationalities. In 2024, the Ministry of Foreign Affairs (MoFA) updated its visa exemption policy to include citizens of over 87 countries, making it easier for travelers from around the world to visit Dubai.

The changes in visa policy have particularly had a strong influence on the increased travel of Indian nationals to the UAE, potentially boosting tourism and related sectors. According to KPMG’s hospitality survey 2024, 70% believe the extended tourist visa for Indian nationals will make them more likely to visit the UAE.

In recent years, Dubai has emerged as one of the top wedding locations globally, with Indian destination weddings constituting a significant segment of the UAE’s wedding tourism market. These events contribute to the country’s economy by driving demand for venues, hotels and other services including wedding planning, photography and catering. The Abu Dhabi Convention and Exhibition Bureau (ADCEB) has also further boosted the local hospitality industry by offering visa support to Indian nationals, positioning the emirate as a top choice for Indian destination weddings.

These initiatives, coupled with the UAE‘s strong infrastructure, strategic location, and diverse offerings, position the country as a leading destination for tourism growth.

AI and technology in hospitality: impact and challenges

The seamless integration of AI systems into business processes has become a driving force in the hospitality industry, enhancing customer service, operational capabilities, and cost efficiency.

88 %

cite modern technology as an important factor in their hotel experience.

77 %

have used mobile apps provided by hotels or booking services.

92 %

are satisfied with their experience of using the mobile apps provided by hotels or booking services.

Embracing ESG

Ineffective sustainability management is costing hospitality and tourism businesses over $8 billion each year globally. This emphasizes a significant need in the industry to advance sustainability in areas including hotel management, allowing tourism companies to make a tangible impact on their clients, the planet, and their profits. Growing pressures and regulations across various stages of the supply chain have also led hospitality businesses globally to take ESG-related actions such as reducing their carbon emissions and water usage.

AI has the ability to speed up organizations’ sustainable transformation by measuring, predicting, optimizing and analyzing very complex systems. It can also accelerate the development of novel ESG solutions and empower the sustainability workforce. The acceleration of ESG commitments is not only driven by government regulations but is also influenced by customers’ growing awareness and support for sustainable businesses.