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)
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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.



Saudi Transport, Logistics Sector Set for 10% Growth in Q2

An investor monitors a trading screen at the Saudi financial market in Riyadh. (AFP)
An investor monitors a trading screen at the Saudi financial market in Riyadh. (AFP)
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Saudi Transport, Logistics Sector Set for 10% Growth in Q2

An investor monitors a trading screen at the Saudi financial market in Riyadh. (AFP)
An investor monitors a trading screen at the Saudi financial market in Riyadh. (AFP)

As Saudi companies start reporting their Q2 financial results, experts are optimistic about the transport and logistics sector. They expect a 10% annual growth, with total net profits reaching around SAR 900 million ($240 million), driven by tourism and an economic corridor project.

In Q1, the seven listed transport and logistics companies in Saudi Arabia showed positive results, with combined profits increasing by 5.8% to SAR 818.7 million ($218 million) compared to the previous year.

Four companies reported profit growth, while three saw declines, including two with losses, according to Arbah Capital.

Al Rajhi Capital projects significant gains for Q2 compared to last year: Lumi Rental’s profits are expected to rise by 31% to SAR 65 million, SAL’s by 76% to SAR 192 million, and Theeb’s by 23% to SAR 37 million.

On the other hand, Aljazira Capital predicts a 13% decrease in Lumi Rental’s net profit to SAR 43 million, despite a 44% rise in revenue. This is due to higher operational costs post-IPO.

SAL’s annual profit is expected to grow by 76% to SAR 191.6 million, driven by a 29% increase in revenue and higher profit margins.

Aljazira Capital also expects a 2.8% drop in the sector’s net profit from Q1 due to lower profits for SAL and Seera, caused by reduced revenue and profit margins.

Mohammad Al Farraj, Head of Asset Management at Arbah Capital, told Asharq Al-Awsat that the sector’s continued profit growth is supported by seasonal factors like summer travel and higher demand for transport services.

He predicts Q2 profits will reach around SAR 900 million ($240 million), up 10% from Q1.

Al Farraj highlighted that the India-Middle East-Europe Economic Corridor (IMEC), linking India with the GCC and Europe, is expected to boost sector growth by improving trade and transport connections.

However, he warned that companies may still face challenges, including rising costs and workforce shortages.