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The tourism sector will remain key to both Saudi and UAE growth agendas. How do you see the
role of the tourism sector and its contribution to the UAE economy?

The UAE’s tourism sector grew by 26 per cent year-on-year basis in 2023 and surpassed the pre-
pandemic levels in 2019 by 14 per cent. The number of hotel guests across the seven emirates
reached 28 million in 2023, reflecting an 11 per cent growth, with a total of 97.3 million hotel nights.
Hotel revenues totaled Dh43.5 billion in 2023, showcasing a remarkable growth of 15 per cent
compared to that of 2022.

Hotel occupancy rate reached 75 per cent in 2023 compared to the previous year's rate of 71.2 per
cent, achieving one of the highest rates achieved by leading global tourism destinations. The
sector’s contribution to the national economy is expected to rise to Dh236 billion (about 12 per cent
of the GDP) in 2014, according to the report by the World Travel & Tourism Council. These
achievements highlight the steady progress towards achieving the strategic goal of attracting 40
million guests to the country's hotels by the next decade.

Similarly, the ‘UAE Strategy for Domestic Tourism’ was launched with the aim to unify local and
federal efforts to harness the UAE’s tourism resources and reinforce the role of domestic tourism in
the national economy. The nationwide campaign presents a wide range of options that cater to
diverse interests of domestic tourists and international travelers and leave unforgettable moments
in their memories about the UAE.

The past three editions of the ‘World’s Coolest Winter’ campaign, first launched in 2020,
represented an important step towards achieving the goals of the National Tourism Strategy 2031 to
attract Dh100 billion as additional investments in the tourism sector and raise its contribution to
GDP by Dh450 billion by the next decade, raising the country's status as the best tourism identity in
the world. The campaign’s third edition led to Dh1.8 billion in hotel revenues, an increase of 20 per
cent compared to the second edition of the campaign, and the third edition attracted 1.4 million
local tourists, an increase of eight per cent compared to the second edition. Through these efforts,
we strive to boost domestic tourism by 45 per cent.

Numbers Matter

• In 2023, the economy grew by 3.6 per cent in real prices

• The non-oil GDP grew by a staggering 6.2 per cent last year

• About 74 per cent of the UAE’s national economy is not based on oil
• The UAE’s tourism sector grew by 26 per cent year-on-year basis in 2023

• Hotel occupancy rate reached 75 per cent in 2023

• More than 788,000 companies were operating in the UAE last year

• The number of SMEs reached about 557,000 by the end of 2022

• SMEs account for 95 per cent of all companies in the country
• Small and medium enterprises employ 86 per cent of the private sector’s workforce

https://www.khaleejtimes.com/business-technology-review/economy-on-track-to-hit-dh3-trillion-
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