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 Non-Oil Exports Hit Two-Year High

The King Abdulaziz Port in Dammam, eastern Saudi Arabia. (“Mawani” port authority)
The King Abdulaziz Port in Dammam, eastern Saudi Arabia. (“Mawani” port authority)
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Saudi Non-Oil Exports Hit Two-Year High

The King Abdulaziz Port in Dammam, eastern Saudi Arabia. (“Mawani” port authority)
The King Abdulaziz Port in Dammam, eastern Saudi Arabia. (“Mawani” port authority)

Saudi Arabia’s non-oil exports soared to a two-year high in May, reaching SAR 28.89 billion (USD 7.70 billion), marking an 8.2% year-on-year increase compared to May 2023.

On a monthly basis, non-oil exports surged by 26.93% from April.

This growth contributed to Saudi Arabia’s trade surplus, which recorded a year-on-year increase of 12.8%, reaching SAR 34.5 billion (USD 9.1 billion) in May, following 18 months of decline.

The enhancement of the non-oil private sector remains a key focus for Saudi Arabia as it continues its efforts to diversify its economy and reduce reliance on oil revenues.

In 2023, non-oil activities in Saudi Arabia contributed 50% to the country’s real GDP, the highest level ever recorded, according to the Ministry of Economy and Planning’s analysis of data from the General Authority for Statistics.

Saudi Finance Minister Mohammed Al-Jadaan emphasized at the “Future Investment Initiative” in October that the Kingdom is now prioritizing the development of the non-oil sector over GDP figures, in line with its Vision 2030 economic diversification plan.

A report by Moody’s highlighted Saudi Arabia’s extensive efforts to transform its economic structure, reduce dependency on oil, and boost non-oil sectors such as industry, tourism, and real estate.

The Saudi General Authority for Statistics’ monthly report on international trade noted a 5.8% growth in merchandise exports in May compared to the same period last year, driven by a 4.9% increase in oil exports, which totaled SAR 75.9 billion in May 2024.

The change reflects movements in global oil prices, while production levels remained steady at under 9 million barrels per day since the OPEC+ alliance began a voluntary reduction in crude supply to maintain prices. Production is set to gradually increase starting in early October.

On a monthly basis, merchandise exports rose by 3.3% from April to May, supported by a 26.9% increase in non-oil exports. This rise was bolstered by a surge in re-exports, which reached SAR 10.2 billion, the highest level for this category since 2017.

The share of oil exports in total exports declined to 72.4% in May from 73% in the same month last year.

Moreover, the value of re-exported goods increased by 33.9% during the same period.