The World Travel and Tourism Council (WTTC) 2024 Economic Impact Research (EIR) has revealed a record year for Travel and Tourism in the United Arab Emirates, with new peaks achieved in key metrics including the contribution to the GDP of the sector, employment and visitor spending.
The UAE’s Travel and Tourism sector is now surpassing all previous records, testament to the country’s commitment to attracting tourists from around the world to destinations such as Dubai, Abu Dhabi and Ras Al Khaimah.
Last year, the sector grew by more than a quarter (26%) to contribute a record 220BN AED to the UAE’s GDP representing 11.7% of the entire economy. This exceeded the previous record set in 2019 by almost 15% and highlights the pivotal role of the sector in the economic framework of the nation.
Jobs supported by Travel & Tourism grew by 41,000 to reach more than 809,000, representing one in nine jobs in the country. Although the jobs lost during the pandemic were fully recovered in 2022, today’s announcement shows that employment in the sector has increased by 11% since the highest point in 2019.
While domestic visitor spending will be fully recovered in 2022, it continued to grow last year to reach more than AED 55.5 billion, which is almost 40% higher than 2019.
Spending by international visitors is set to grow by nearly 40% in 2023 to reach more than AED 175BN, 12% above 2019 levels, reflecting the UAE’s enduring appeal as a world-leading tourism destination.
Julia Simpson, President & CEO WTTC said; “The UAE’s Travel and Tourism sector has not only recovered; it has grown to new heights, establishing itself as a cornerstone of the nation’s economic landscape.
“The remarkable growth in employment and visitor spending is a testament to the UAE’s strategic vision and commitment to strengthening its Travel and Tourism sector. As the sector continues to set benchmarks for the industry of global travel, underlines the importance of sustainable and inclusive strategies in the world.
Speaking from the VFS Global iConnect conference in Abu Dhabi, Zubin Zakaria, Founder and CEO of VFS Global, added: “The UAE has always been a key contributor to global travel and this market has significantly fueled the travel recovery following the pandemic
“WTTC’s research findings are extremely encouraging and as a key player in the travel ecosystem, VFS Global remains committed to supporting the ongoing travel recovery and ensuring seamless and safe cross-border mobility.”
What is this year?
The global tourism organization predicts that the sector will continue to grow at pace in 2024 with the GDP set to reach more than AED 236BN. Employment will increase by more than 23,500 jobs to reach nearly 833,000. Spending by international visitors is expected to grow by nearly 10% to reach AED 192BN and spending by domestic visitors is expected to increase by 4.3% to reach almost AED 58BN.
What does the next decade look like?
The global tourism organization predicts that the sector will increase its annual GDP contribution to more than AED 275BN in 2034, almost 11% of the UAE economy. It is also projected to employ more than 928,000 people throughout the country, with one in nine residents working in the sector.
Throughout the Middle East
The Middle East Travel and Tourism sector is set to grow by over 25% in 2023 to reach nearly $460 BN USD. Employment reached nearly 7.75 MN and international spending grew by 50% to reach $179.8 billion USD. Domestic visitor spending grew 16.5% to reach over $205BN USD
The WTTC predicts that Travel and Tourism in the region will continue to grow throughout 2024 with the GDP contribution set to reach $507BN USD. Employment is expected to reach 8.3MN, international visitor spending is expected to reach $198BN USD and domestic visitor spending is expected to reach more than $224BN USD.
UAE flight booking trends
According to ForwardKeys, the knowledge partner of the global tourism body, international arrivals to Abu Dhabi and Dubai grew by more than 9% over the numbers of 2019 last year.
Flight bookings to Abu Dhabi for the second quarter of 2024 also show strong growth, 59% more than last year, while bookings to Dubai are up 13%.
