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UAE Tourism Sector Performance Tops Pre-Pandemic Rates

A picture shows the Saudi pavilion during the Arabian Travel Market, the Middle East's largest travel and tourism exhibition, in Dubai on May 10, 2022. (AFP)
A picture shows the Saudi pavilion during the Arabian Travel Market, the Middle East's largest travel and tourism exhibition, in Dubai on May 10, 2022. (AFP)
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UAE Tourism Sector Performance Tops Pre-Pandemic Rates

A picture shows the Saudi pavilion during the Arabian Travel Market, the Middle East's largest travel and tourism exhibition, in Dubai on May 10, 2022. (AFP)
A picture shows the Saudi pavilion during the Arabian Travel Market, the Middle East's largest travel and tourism exhibition, in Dubai on May 10, 2022. (AFP)

Figures in the United Arab Emirate' tourism sector have topped pre-pandemic levels in 2019.

The figures revealed that hotels attracted nearly six million visitors, who spent 25 million hotel nights in the first quarter of 2022, reflecting a growth of 10% compared to the same period in 2019.

The average duration of hotel guest stays reached 25% during the same period, up from three to four nights.

Moreover, the occupancy rate of hotel establishments in the country during Q1 2022 achieved 80 percent growth, one of the highest globally.

Hotels also generated a total revenue of AED11 billion with a 20% growth compared to the same period in 2019 and resumed operations at full capacity of approximately 200,000 hotel rooms.

Dr. Ahmad Belhoul al-Falasi, Minister of State for Entrepreneurship and SMEs and Chairman of the UAE Tourism Council, revealed that the country’s tourism sector achieved a new growth milestone in Q1 2022, underlining its competitiveness at both regional and international levels.

He attributed the sector’s latest achievement to the unlimited support and directives of the UAE’s wise leadership and its interest in this vital sector, which is one of the future sectors and a key focus area in the UAE’s development vision for the next 50 years.

Falasi said that during the first quarter of this year, the national tourism sector exceeded the growth rates recorded not only in 2020 and 2021, but also during the same period in 2019, which is the benchmark for measuring recovery and growth rates in most countries today.

“It is one of the best years in terms of economic growth in general and tourism in particular, and this confirms the strong comeback of the sector,” he added.

Furthermore, Q1 2022 saw a resurgence and a strong comeback of inward tourism flows from foreign markets, as hotel establishments in various emirates hosted nearly four million international tourists.

India, Saudi Arabia, the United Kingdom, Russia, and the United States topped the list of international tourists.

Falasi pointed to the important role that the major events hosted by the UAE over the past months played in supporting the sector.

These include Expo 2020 Dubai, which successfully attracted more than 24 million visitors over six months, and the Worlds’s Coolest Winter campaign in its second edition. In over a month and a half, the event generated a total revenue of AED1.5 billion ($408 million) and attracted more than 1.3 million local tourists.

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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)
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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.