UAE Hospitality Market Overview

Market Size in 2024: USD 23.9 Billion

Market Size in 2033: USD 37.7 Billion

Market Growth Rate 2025-2033: 5.2%

According to IMARC Group’s latest research publication, “UAE Hospitality Market Size, Share, Trends and Forecast by Components, Material Used, End User, and Region, 2025-2033”, the UAE hospitality market size reached USD 23.9 billion in 2024. Looking forward, IMARC Group expects the market to reach USD 37.7 billion by 2033, exhibiting a growth rate (CAGR) of 5.2% during 2025-2033.

How AI is Reshaping the Future of UAE Hospitality Market

• AI now handles about 80% of routine queries in UAE hospitality, boosting direct bookings by up to 30% and cutting operational costs by half, streamlining guest experiences effectively.
• Government-backed pilots like Abu Dhabi's biometric facial recognition cut hotel check-in times dramatically while maintaining strong security, showing public sector support for AI tech.
• Around 68% of UAE travelers use AI for booking trips, with multilingual chatbots and virtual concierges delivering 24/7 guest support in over 200 languages, improving convenience and personalization.
• AI-driven fraud detection tools reduce false positives by 86%, addressing a key concern as 17% of travelers and 42% of businesses report increased booking and payment fraud attempts.
• Top UAE hotels leverage AI for dynamic pricing, predictive housekeeping, robotic delivery, and energy management, achieving notable waste reduction, sales lifts, and over 250% ROI in some cases.

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UAE Hospitality Market Trends & Drivers:

The UAE hospitality market is being driven strongly by government-backed tourism visions and large-scale infrastructure investments. The Tourism Vision 2031 directs substantial funding of around USD 35 billion towards developing airports, destination attractions, and smart mobility corridors that support tourism growth. These initiatives aim to raise tourism's contribution to the GDP significantly and increase hotel guest arrivals to around 40 million annually. Collaborations between local and federal authorities, complemented by policies encouraging international tourism and new investments reaching tens of billions in AED, have helped position the UAE as a global destination beyond traditional luxury, fostering a more balanced market with a mix of midscale and luxury offerings.

Another key driver is the rapid expansion and diversification of hospitality offerings, particularly the surge in high-quality, amenity-rich hotel developments. Dubai alone accounts for over 60% of the UAE’s hotel inventory, with more than 100 new hotel projects in progress, where luxury hotels represent about 64% of the pipeline. The sector’s performance remains robust, with recent occupancy rates in Dubai exceeding 90%, and average daily rates surpassing $220. Midscale and upper midscale segments are also growing steadily, supported by evolving guest preferences toward personalized, wellness-oriented, and tech-enabled experiences. Operators are increasingly adopting sustainable and digital-first strategies to stay competitive in this expanding market.

Lastly, technology and innovation are transforming the guest experience and operations in the UAE hospitality sector. Pioneering solutions like UXE Group’s Keyless smart access system allow guests to use smartphones for seamless check-in and hotel-style convenience in holiday homes and serviced apartments, impacting over 800,000 tourists annually and reducing carbon emissions significantly. This widespread integration of IoT, AI-driven guest experience metrics, and contactless technologies is boosting operational efficiency, guest satisfaction, and sustainability practices. Additionally, partnerships and expansion into suburban markets by restaurant and hospitality chains demonstrate how tech-enabled personalization and convenience are becoming central to hospitality growth across the UAE.

We explore the factors driving the growth of the market, including technological advancements, consumer behaviors, and regulatory changes, along with emerging UAE hospitality market trends.

UAE Hospitality Industry Segmentation:

The report has segmented the market into the following categories:

Type Insights:

• Chain Hotels
• Independent Hotels

Segment Insights:

• Service Apartments
• Budget and Economy Hotels
• Mid and Upper Mid-scale Hotels
• Luxury Hotels

Regional Insights:

• Dubai
• Abu Dhabi
• Sharjah
• Others

Competitive Landscape:

The competitive landscape of the industry has also been examined along with the profiles of the key players.

Recent News and Developments in UAE Hospitality Market

• July 2025: Dubai’s hospitality industry sets a new high, leveraging AI-powered guest personalization, facial recognition check-ins, and smart room controls in leading hotels like Atlantis The Royal, making seamless, tech-driven stays the new standard for travelers.

• June 2025: Food and beverage innovation takes center stage in the UAE, with cloud kitchens, delivery-only restaurant brands, and AI-driven menu engineering surging across major cities. This shift allows quicker service and personalized dining, driven by growing local demand and tech-savvy consumers.

• May 2025: The Hotel Show Dubai transforms the city into a hub of hospitality innovation, spotlighting eco-friendly water and energy-saving solutions, intelligent lighting systems, and waste transformation technology. Exhibitors show how responsible choices can deliver both environmental and business wins for hotels.

Note: If you require specific details, data, or insights that are not currently included in the scope of this report, we are happy to accommodate your request. As part of our customization service, we will gather and provide the additional information you need, tailored to your specific requirements. Please let us know your exact needs, and we will ensure the report is updated accordingly to meet your expectations.

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IMARC Group is a global management consulting firm that helps the world’s most ambitious changemakers to create a lasting impact. The company provides a comprehensive suite of market entry and expansion services. IMARC offerings include thorough market assessment, feasibility studies, company incorporation assistance, factory setup support, regulatory approvals and licensing navigation, branding, marketing and sales strategies, competitive landscape and benchmarking analyses, pricing and cost research, and procurement research.

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