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)
TT

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 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)
TT

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.