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

Hotel occupancy in the UAE reached 79 percent in 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 ($24.2 billion) between January and October, with 1,243 hotels offering more than 216,000 rooms nationwide, UAE state-run Wam news agency reported, quoting economy and tourism minister 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 plans to raise the sector’s contribution to 17 percent within five years, supported by growing investment and continued expansion in aviation, the minister said.

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

Dubai has also introduced an incentive scheme to encourage hotel development in high-growth zones through public-private partnerships.

Further reading:

• Revenue at UAE hotels stays on upward curve
• Dubai is full – new hotels are having to move south
• UAE hotels hit by talent crunch as growth outpaces staffing

In November Abu Dhabi’s department of culture and tourism said hotel revenue for the first half of 2025 rose by a quarter from a year earlier, primarily due to a sharp increase in cultural visits and rising numbers across heritage sites.

According to Al Marri, tourism investment 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.