عربي English Türkçe اردو فارسى
Logo
Latest News
Business

Local Market Revives UAE Tourism Sector, Accounts for 58% of Total Number of Hotel Guests

More than 75 million hotel nights were booked in all the seven United Arab Emirates in 2021. (Asharq Al-Awsat)
More than 75 million hotel nights were booked in all the seven United Arab Emirates in 2021. (Asharq Al-Awsat)
TT
TT

Local Market Revives UAE Tourism Sector, Accounts for 58% of Total Number of Hotel Guests

More than 75 million hotel nights were booked in all the seven United Arab Emirates in 2021. (Asharq Al-Awsat)
More than 75 million hotel nights were booked in all the seven United Arab Emirates in 2021. (Asharq Al-Awsat)

The local market has revived the UAE tourism sector by acquiring 58% of the total number of the 19 million hotel guests, compared to 42% tourists, according to a report released on Tuesday.

Hotel establishments achieved a growth of more than 29% in 2021 compared to the number of guests recorded in 2020.

According to the report, revenues from the sector grew by about 70% in 2021 at 28 billion dirhams ($7.6 billion dollars) compared to 2020.

These figures were released after the Emirates Tourism Council (ETC) held its first meeting this year, chaired by Dr. Ahmad al-Falasi, the Minister of State for Entrepreneurship and Small and Medium Enterprises.

Heads and directors of all local tourism departments and authorities attended the meeting.

More than 75 million hotel nights were booked in 2021, up 42% compared to 2020, while the hotel occupancy rate amounted to 67%.

The number of hotel establishments in the UAE also increased during 2021 by five percent compared to 2020, reaching 1,144 establishments.

So did the number of hotel rooms, which increased by eight percent to reach 194,000 rooms across the emirates.

Falasi said these positive results reflect the efficiency of the policies adopted by the UAE to support and develop the national tourism sector.

He pointed out that many of these figures are close to the growth rates achieved in the pre-pandemic period, which indicates the full recovery of the national tourism sector.

He further underlined the importance of the contribution of the recent major events and initiatives organized by the country.

These include Expo 2020 Dubai, which attracted more than 24 million visitors in six months, and the second edition of the World’s Coolest Winter campaign, which generated revenues amounting to 1.5 billion dirhams.

Most Viewed

 
 
Business

Revenue Growth, Improved Operational Efficiency Boost Profitability of Saudi Telecom Companies

A man monitors the movement of stocks on the Saudi Tadawul index. (AFP)
A man monitors the movement of stocks on the Saudi Tadawul index. (AFP)
TT
TT

Revenue Growth, Improved Operational Efficiency Boost Profitability of Saudi Telecom Companies

A man monitors the movement of stocks on the Saudi Tadawul index. (AFP)
A man monitors the movement of stocks on the Saudi Tadawul index. (AFP)

Telecommunications companies listed on the Saudi Stock Exchange (Tadawul) achieved a 12.46 percent growth in their net profits, which reached SAR 4.07 billion ($1.09 billion) during the second quarter of 2024, compared to SAR 3.62 billion ($965 million) during the same period last year.

They also recorded a 4.76 percent growth in revenues during the same quarter, after achieving sales worth more than SAR 26.18 billion ($7 billion), compared to SAR 24.99 billion ($6.66 billion) in the same quarter of 2023.

The growth in the revenues and net profitability is the result of several factors, including the increase in sales volume and revenues, especially in the business sector and fifth generation services, as well as the decrease in operating expenses and the focus on improving operational efficiency, controlling costs, and moving towards investment in infrastructure.

The sector comprises four companies, three of which conclude their fiscal year in December: Saudi Telecom Company (STC), Mobily, and Zain Saudi Arabia. The fiscal year of Etihad Atheeb Telecommunications Company (GO) ends on March 31.

According to its financial results announced on Tadawul, Etihad Etisalat Company (Mobily) achieved a 33 percent growth rate of profits, bringing its profits to SAR 661 million by the end of the second quarter of 2024, compared to SAR 497 million during the same period in 2023. The company also achieved a 4.59 percent growth in revenues to reach SAR 4.47 billion, compared to SAR 4.27 billion in the same quarter of last year.

The Saudi Telecom Company achieved the highest net profits among the sector’s companies, at about SAR 3.304 billion in the second quarter of 2024, compared to SAR 3.008 billion in the same quarter of 2023. The company registered a growth of 4.52 percent in revenues.

On the other hand, the revenues of the Saudi Mobile Telecommunications Company (Zain Saudi Arabia) increased by about 6.69 percent, as it recorded SAR 2.55 billion during the second quarter of 2024, compared to SAR 2.39 billion in the same period last year.

Commenting on the quarterly results of the sector’s companies, and the varying net profits, the head of asset management at Rassanah Capital, Thamer Al-Saeed, told Asharq Al-Awsat that the Saudi Telecom Company remains the sector leader in terms of customer base expansion.

He also noted the continued efforts of Mobily and Zain to offer many diverse products and other services.

Financial advisor at the Arab Trader Mohammed Al-Maymouni said the financial results of telecom sector companies have maintained a steady growth, up to 12 percent, adding that Mobily witnessed strong progress compared to the rest of the companies, despite the great competition which affected its revenues.

He added that Zain was moving at a good pace and its revenues have improved during the second quarter of 2024. However, its profits were affected by an increase in the financing cost by SAR 26.5 million riyals and a rise in interest, while net income declined significantly compared to the previous year, during which the company made exceptional returns.