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Average rate hits 79.3% in first 10 months of 2025 as revenues climb to AED89 billion
The UAE’s hotel occupancy levels rank among the highest in the world, according to Minister of Economy and Tourism Abdulla bin Touq Al Marri, who revealed rates reached 79.3% during the first 10 months of 2025.
Speaking at the launch of the sixth edition of the World’s Coolest Winter campaign, Al Marri reported hotel revenues of AED89 billion (US$24.2 billion) over the same period. The UAE now has 1,243 hotels offering more than 216,000 rooms nationwide.
Occupancy levels have risen from 78% recorded in 2024, with the first half of 2025 seeing 16.1 million hotel guests, marking a 5.5% year-on-year increase.
Tourism accounted for 13% of the UAE’s GDP in 2024, totalling AED257.3 billion (US$70 billion) and supporting 920,000 jobs. The ministry aims to increase the sector’s contribution to 17% within five years.
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Tourism investment also continued to climb, reaching AED32.2 billion in 2024, up from AED28.8 billion in 2023, and projected to hit AED35.2 billion in 2025.
The national average of 79.3% is notable given it spans the entire country, including the summer low season. Dubai’s hotel occupancy rose to 81% in the first half of 2025, driven by a 6.1% year-on-year increase in visitor arrivals to nearly 10 million, while Abu Dhabi recorded 87% in April 2025.
For comparison, Eurostat data shows average hotel occupancy across the EU at 49% in 2024, with Cyprus (72%), Malta (66%) and Spain (62%) among the top performers.
Hotel occupancy is expected to rise further over the upcoming Christmas and New Year holidays, with Amadeus data showing Tromso, Norway, leading global rankings at 93%, followed by Aruba (89%) and Queenstown, New Zealand (86%).
For more information, visit moet.gov.ae