As per Dubai government, the emirate set a new tourism record in 2024 by receiving 18.7 million overnight guests
Thanks to a sharp rise in international tourist arrivals that stood at over 18.7 million in 2024, Dubai saw a robust growth in the hospitality sector with an increase of 4,255 new rooms, reflecting a 26.5 pc annual net growth in new rooms added in 2024, says a report by Cavendish Maxwell, the largest firm of independent property consultants in the Middle East.
As per Dubai government, the emirate set a new tourism record in 2024 by receiving 18.7 million overnight guests, a 9.1 pc increase from the 17.1 million visitors recorded the previous year.
In a press statement, Cavendish Maxwell says that the growth is set to continue and that 2025 and 2026 are expected to each see a total of 20 new hotel openings leading to a cumulative total of 744 and 764 new rooms by the end of 2025 and 2026 respectively.
The statement adds that occupancy levels in Dubai remained relatively stable year-on-year, with a rise of 1 pc, reaching 78 pc. The luxury and upper-midscale segments experienced the most significant gains, rising by 3 pc and 2.4 pc, respectively. However, the upscale sector saw a slight decline of 0.3 pc compared to 2023, says the report.
“Dubai’s hospitality sector continues its upward trajectory, setting new benchmarks in tourism growth and hotel performance. With a record 18.72 million visitors in 2024 and a steady pipeline of luxury and upper-upscale developments, the market is evolving to meet increasing global demand. However, as supply expands particularly in the luxury segment occupancy and ADR growth may face short-term pressures. Strategic positioning, competitive pricing, and sustained demand from key source markets will be crucial in maintaining Dubai’s status as a premier hospitality hub,” says Gergely Balint Associate Partner, Commercial Valuation and Hospitality.
The average daily rate (ADR) reached around AED 690 (USD 188), reflecting a modest year-on-year increase of 0.2 pc, from the retroactive 2023 figure of AED 688. Upscale and upper-midscale properties saw growth, with increases of 0.7 pc and 0.4 pc, respectively. In contrast, upper upscale hotels experienced a 1.7 pc decline, while luxury hotels saw a 1.9 pc drop in their ADR year-on-year despite a strong 3 pc increase in occupancy.
The report adds that based on ADR trends from 2022 to 2024 and the dynamics of Dubai’s hospitality market, the estimated ADR for 2025 is projected to reach AED 698, reflecting a modest growth of just over 1 pc from the 2024 figure of AED 690.
Cavendish Maxwell says that besides Dubai, all other Emirates experienced an increase in ADR, with Abu Dhabi leading the growth of 14.5 pc and 14.4 pc, respectively. Ras Al Khaimah recorded a 14 pc year-on-year ADR increase.
According to the statement, Abu Dhabi City Hotels experienced the strongest occupancy growth of 10.5 pc, driven by increased demand from corporate travel, MICE (Meetings, Incentives, Conferences and Events), and government-backed tourism initiatives.
The emirate achieved a record 1.28 million visitors in 2024, this represented a 4.9 pc increase from the previous year, marking the smallest growth in recent years.
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