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.



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.