UAE hotel occupancy at 79%, among ‘highest’ globally says minister

Hotel occupancy in the UAE reached 79 percent during the first 10 months of 2025, up from 78 percent last year, placing the Gulf state among the “highest” regionally and globally, according to a government official.

Hotel revenues totalled AED89 billion ($24.23 million) between January and October, with 1,243 hotels offering more than 216,000 rooms nationwide, the UAE state-run Wam news agency reported, quoting minister of economy & tourism Abdulla bin Touq Al Marri.

Tourism accounted for 13 percent of the UAE’s GDP last year, or AED257 billion and provides more than 920,000 jobs, he said.

The country is planning to raise the sector’s contribution to 17 percent within five years, supported by growing investments and continued expansion in the aviation sector, the minister said.

Last year Dubai commenced work on the AED128 billion expansion of Al Maktoum International airport, capable of handling 260 million passengers annually upon completion.

Dubai has already introduced a new incentive scheme to encourage hotel developments in high-growth zones through public-private partnerships.

In November Abu Dhabi’s Department of Culture and Tourism said hotel revenues for the first half of 2025 rose by a quarter from the same period last year, primarily due to a sharp increase in the emirate’s cultural tourism and rising numbers across heritage sites.

According to Al Marri, tourism investments in the UAE reached AED32 billion last year, up from AED29 billion in 2023.

Investments are expected to rise to AED35 billion in 2025, he said.