UAE Travel and Tourism Market, By Type (Domestic Tourism, Inbound Tourism, Outbound Tourism); By Purpose of Travel (Leisure & Recreation, Business Travel, Religious Tourism, Medical Tourism, Education & Training); By Mode of Transport (Air Travel, Road Tr

UAE Travel and Tourism Market Size Set to Surpass USD 102 Billion by 2031

UAE Travel and Tourism Market is booming primarily due to the government’s supportive initiatives, significant infrastructure development, the country's strategic location and connectivity, and its diverse tourism offerings.

BlueWeave Consulting, a leading strategic consulting and market research firm, in its recent study, estimated UAE Travel and Tourism Market size by value at USD 61.3 billion in 2024. During the forecast period between 2025 and 2031, BlueWeave expects UAE Travel and Tourism Market size to boom at a significant CAGR of 7.55% reaching a value of USD 102.03 billion by 2031. The growth of Travel and Tourism Market in UAE is propelled by substantial investments in infrastructure, the proliferation of luxury resorts, spas, fine dining, and high-end retail, coupled with strong governmental support through strategic initiatives, policies, and incentives aimed at bolstering tourism. The sector is expected for another record year in 2025, anticipated to contribute AED 267.5 billion to the UAE economy, constituting nearly 13% of the GDP, and supporting over 925,000 jobs. International visitor spending alone is forecast to reach AED 228.5 billion, a 37% increase over the 2019 pre-pandemic peak, while domestic visitor expenditure is projected to climb to AED 60 billion. Emerging travel trends such as nostalgia tourism and sleep tourism are gaining traction among UAE residents, reflecting a growing preference for meaningful, restful, and culturally rich experiences, with a significant number of travelers, especially families, seeking destinations tied to childhood dreams and prioritizing wellness, including pampering (81%), beachside relaxation (71%), and improved sleep in hotels (62%). Furthermore, eco-conscious travel is becoming increasingly prominent, with 84% of UAE travelers actively seeking sustainable options, and the market is observing a shift towards digital, forward-planned travel, where online bookings are highly favored while personalized customer support remains valued. By 2035, the sector is projected to contribute nearly AED 287.8 billion to the national economy and support over 1 million jobs, underscoring its pivotal role in the UAE’s long-term vision for economic diversification and sustainable tourism development.

Opportunity – Sustainable Tourism Growth
The UAE Travel and Tourism Market is increasingly driven by sustainable tourism, which presents significant growth opportunities by balancing environmental responsibility with economic diversification. Emphasizing eco-friendly travel, cultural preservation, and rural tourism development, the UAE is positioning itself as a leading destination for nature-based and culturally immersive experiences. Destinations such as Hatta, Al Marmoom Desert Reserve, and Liwa Oasis exemplify this approach by attracting environmentally conscious travelers while safeguarding natural and cultural heritage. The UAE government’s supportive initiatives and campaigns like the “World’s Coolest Winter” promote green tourism and community engagement, reinforcing national goals for sustainability and economic growth. Financial support through public-private partnerships, eco-tourism investments, and conservation funding ensures the long-term viability of this sector, creating jobs and boosting GDP. With a strong focus on innovation, digital transformation, and climate action, the UAE ranks 18th globally in the Travel and Tourism Development Index 2024, reflecting its leadership in sustainable tourism. This comprehensive approach positions the country to meet growing global demand for responsible travel while preserving its unique environmental and cultural assets for future generations.
Inbound Tourism Dominates UAE Travel and Tourism Market
The inbound tourism segment accounts for largest share in UAE Travel and Tourism Market by type, fueled by a significant rise in international visitor arrivals and spending. The WTTC projects international visitor expenditure to reach USD 62.2 billion (AED 228 billion) by 2025, considerably surpassing domestic tourism. The UAE's strategic focus on attracting global tourists to key destinations like Dubai, Abu Dhabi, and Ras Al Khaimah, bolstered by enhanced airline partnerships and sports tourism initiatives, reinforces its position as a world-class destination. This pivotal segment is forecasted to contribute 13% to the national GDP and support over 925,000 jobs by 2025, cementing the UAE's status as a leading global travel and tourism hub.

Impact of Escalating Geopolitical Tensions on UAE Travel and Tourism Market

Intensifying geopolitical tensions could have a multifaceted impact on the growth of UAE Travel and Tourism Market. Such instability can generate uncertainty and diminish traveler confidence. Heightened regional conflicts or diplomatic disagreements may lead to the issuance of travel advisories, flight cancellations, and the implementation of more stringent security measures, consequently discouraging both tourists and investors. These tensions can also disrupt the international relations and trade partnerships critical for sustained tourism growth. Moreover, the perception of instability might cause travelers to re-route to destinations perceived as safer, resulting in a quantifiable decline in visitor numbers and associated revenue.

Competitive Landscape

UAE Travel and Tourism Market is highly fragmented, with numerous players serving the market. Major companies dominating the market include Emirates Group, Etihad Airways, Emaar Hospitality Group, Jumeirah Group, Dubai Tourism (DTCM), Abu Dhabi Department of Culture and Tourism (DCT), dnata Travel Group, Atlantis The Palm, Rotana Hotels and Resorts, and Flydubai. The key marketing strategies adopted by the players are facility expansion, product diversification, alliances, collaborations, partnerships, and acquisitions to expand their customer reach and gain a competitive edge over their competitors in UAE Travel and Tourism Market.

The report's in-depth analysis provides information about growth potential, upcoming trends, and UAE Travel and Tourism Market statistics. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends in UAE Travel and Tourism Market along with industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyses the growth drivers, challenges, and competitive dynamics of the market. Show more