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1/29/24, 10:50 AM Which UAE stocks have most to gain from tourism sector’s sustained growth? | Markets – Gulf News

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Be numbers paint a dazzling picture: Dubai witnessed a 20 per cent surge in international visitors to 15.37 million in the

11 months ending 2023. Hotel revenues are bubbling 27 per cent hotter and occupancy at a tasty 75 per cent.

Even a dip in room rates can't cool the heat, as UAE tourism surpasses pre-pandemic levels. Even the ‘bleisure’ trend of

blending business with leisure is finding its sweet spot in Dubai, where average room rates surpass the regional average

and occupancy rates at 76 per cent.

Dubai's future ambitions are equally sky-high. Be emirate aims to attract a staggering 40 million visitors by 2030, backed

by a hotel room expansion plan that will double capacity as the city prepares for major events. World-class airlines like
Emirates, Etihad (with new routes to the US, India and Africa), and budget carrier Wizz Air Abu Dhabi (2024 target: 30

per cent passenger growth) fuel this boom.

And don’t underestimate Ras Al Khaimah. Be city emerges as a rising star, experiencing its best tourism year ever in 2023
with an 8 per cent visitor increase.

Beyond the statistics, what does this mean for investors? Stocks in industries tied to visitor flow are poised for an exciting

ascent. Hoteliers, restaurateurs, airlines, entertainment companies and retailers stand to benefit from the influx of tourists
seeking unforgettable experiences.

So, keep a close eye on some of these key tourism-linked stocks. With the UAE's skyrocketing visitor numbers and

ambitious growth plans, the ride promises to be exciting.

Americana Restaurants

Bis quick service restaurant giant with brands like KFC and Pizza Hut is primed to cash in on the appetites of residents –

and tourists. Americana’s recent 7 per cent revenue growth and 15.8 per cent profit surge serve as testament to an ability

to capitalize. Besides, their healthy debt-to-equity ratio adds stability.

Salik

As tourist laden vehicles crisscross Dubai, Salik's toll system rakes in profits. Beir 12 per cent revenue rise in Q3-023

speaks volumes about their connection to growth from tourism activity. Beir impressive 2023 return and juicy 4 per cent

dividend yield further sweeten the deal.

Air Arabia

Air Arabia's surging profits and ambitious expansion plans paint a compelling picture. Beir low-cost model, financial

stability, and focus on untapped markets like Africa offer potential. Of course, geopolitical and fuel price risks linger, but

with a surge of 50 per cent in net profit in the first 9 months of 2023) and a lean, cash-rich business, Air Arabia could
soon soar even higher.

Air Arabia's skyrocketing 40 per cent return and targeted 15-20 per cent passenger growth are major positives. Be 5 per

cent dividend yield makes it further lucrative.

Abu Dhabi National Hotels

Poised to capture millions of visitors to UAE as guests, ADNH benefits from a range of hotels like the Hilton, Sheraton, and

Le Meridien, catering to diverse budgets and preferences, thus reducing overall risk. ADNH's Q3-2023 results showed a

74% YoY jump in net profits, indicating potential for healthy returns and dividend payout.

Abu Dhabi Aviation

A haven for private jets and charters catering to wealthy clientele, Abu Dhabi Aviation offers stability even during

economic downturns. Beir partnership with Etihad Airways for ground handling services adds another layer of security.

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