Dubai welcomed more tourists than ever before in 2023, attracting 17.15 million international overnight visitors over the course of the year, according to the latest data published by Dubai’s Department of Economy and Tourism (DET). Representing a 19.4% YoY growth over the 14.36 million tourist arrivals in 2022, last year’s figure also exceeded the previous record of 16.73 million visitors registered in 2019.
The growth aligns with the goals of the Dubai Economic Agenda D33 launched just over a year ago by the Ruler of Dubai, to further consolidate Dubai’s position as one of the top three global cities for business and leisure, and the best city to visit, live and work in.
The city caters to travellers of all budgets and preferences, and a year-round calendar of business, leisure and sporting events continues to attract international visitors.
The tourism sector's performance closely parallels the emirate's 3.3% GDP growth in the first nine months of 2023, further highlighting the symbiotic relationship between tourism and economic prosperity. Accommodation and food services activities witnessed a remarkable 11.1% growth, solidifying Dubai’s position as a global tourism leader.
Dubai’s international visitor performance has outshone global tourism trends, with the latest data from the UN World Tourism Organisation revealing that, overall, international tourism reached 88% of pre-pandemic levels by the end of 2023. The only region to overcome pre-pandemic levels with 22% visitation growth above 2019, the Middle East led global recovery in relative terms.
Key Regions Maintain Momentum
The strong tourism performance in 2023 saw Dubai maintain its position as a first-choice travel destination for visitors both from key traditional and emerging markets. From a regional perspective, the GCC and MENA delivered a combined 28% of the share, demonstrating Dubai’s allure as a trusted and favoured destination for visitors from neighbouring markets. Western Europe and South Asia accounted for 19% and 18% of arrivals respectively, while CIS/Eastern Europe recorded a 13% share. The North Asia and South-East Asia region accounted for 9% of arrivals, the Americas contributed 7%, Africa 4% and Australasia 2%.
Hotels Outperform Pre-pandemic Levels across all Metrics
Dubai’s hospitality sector, which is integral to the emirate’s destination promise and overall growth of the tourism industry, continued to perform strongly, surpassing pre-pandemic levels across all hospitality metrics - Occupancy, Occupied Room Nights, Guests’ Length of Stay, Average Daily Rate (ADR), and Revenue Per Available Room (RevPAR).
Occupancy Remains among the Highest in the World
Average occupancy for the hotel sector in 2023 stood at 77.4%, among the world’s highest, increasing from 72.9% in 2022 and exceeding the 75.3% average occupancy in 2019. The high occupancy level is an exceptional achievement, given an overall 19% increase in room supply in 2023 compared to 2019.
Milestone 150,000 Room Keys Achieved
Dubai’s hotel inventory at the end of December 2023 comprised 150,291 rooms at 821 establishments, compared to 146,496 rooms available at the end of December 2022 across 804 establishments and 126,120 rooms available at the end of December 2019 across 741 establishments. Last year’s milestone achievement reflects the growth and success in the hospitality industry.
Occupied Room Nights Surge to Record High
In 2023, occupied room nights soared to a record high of 41.70 million, marking a 11% increase compared to 2022 (37.43 million). This growth also represents a substantial 30% rise from the pre-pandemic figures of 2019, which saw 32.11 million occupied room nights.
Reflecting the commitment of the city and hospitality sector to offer competitive pricing, the 2023 ADR of AED536 matched the ADR in 2022. The hotel sector’s robust performance is also evident in its RevPAR growth – an increase of 6% compared to 2022 (AED415 vs. AED391) and a growth of 33% over the pre-pandemic period of 2019 (RevPAR of AED312). Guests’ Length of Stay was 3.8 nights in 2023, a 10% increase from 3.4 nights in 2019.
Delivering on Sustainability Goals
Dubai is a leader in sustainability, with its efforts aligning with global objectives, such as the United Nations Sustainable Development Goals 2030. Aligned with the Dubai Economic Agenda D33 and the UAE’s Net Zero 2050 strategy, the ongoing Dubai Sustainable Tourism (DST) drive initiated by DET provides support for the hospitality industry through several programmes.
In July 2023, DET launched the Dubai Sustainable Tourism Stamp, a new initiative, as part of DST, that recently recognised 70 hotels with the highest level of adherence to DET’s ‘19 Sustainability Requirements’, the first of its kind in the region. Developed in collaboration with Dubai’s hospitality sector, the stamp is designed to accelerate efforts towards empowering the tourism sector to achieve its sustainability goals and serve as a validation of the hotel’s dedication to sustainable practices.
New Initiatives to Spur Growth
Another major initiative announced in 2023 was the Dubai Master Plan for Public Beaches, which aims to increase the length of public beaches by 400% by 2040 and increase services offered on public beaches by 300% by 2025. Dubai’s tourism offering will be further expanded with the implementation of the Dubai 2040 Urban Master Plan. Strategic goals of this long-term plan include doubling green and leisure areas and enhancing their qualities, safeguarding the emirate’s cultural and urban heritage, and providing sustainable and flexible means of mobility. Under the Master Plan, the total space dedicated to hotels and tourist activities will increase by over 100% over the next two decades.