E-Paper
Sign In
UAE hospitality boom picks up pace in line with the UAE Tourism Strategy
Reforms, rising visitor spend and major tourism projects drive strong growth in UAE’s hospitality market
- PUBLISHED: Sat 31 Jan 2026, 8:00 AM
- By:
- Muzaffar Rizvi
- Share:
The outlook for the UAE’s hospitality industry remains exceptionally strong, with the sector on track to welcome 40 million hotel guests annually by 2031, in line with the UAE Tourism Strategy. Analysts say the industry is firing on all cylinders, buoyed by rising inflows of high net worth individuals (HNWIs), robust foreign investment, progressive economic policies, stable governance and world class infrastructure.
Latest industry data and senior executives indicate that the hospitality sector will go from strength to strength, with revenues projected to climb to $35.14 billion by 2030, up from $27.34 billion last year. Market intelligence firm Mordor Intelligence forecasts a 7.88% compound annual growth rate between 2025 and 2030, citing a highly favourable operating environment.
Recommended For You
Citing the World Travel and Tourism Council, the report said international traveller spending in the UAE is expected to hit a record Dh228 billion this year, setting a new benchmark for the post pandemic recovery.
Much of the momentum stems from the Tourism Vision 2031 roadmap, the enduring legacy of Expo 2020, and expanding airport capacities that now exceed 92.3 million passengers annually — a combination that ensures a steady stream of inbound traffic for UAE hotels.
“Visa liberalisation is lengthening stays, low cost carrier expansion is opening doors to price sensitive travellers, and high digital adoption is meeting the expectations of 88% of guests who consider smart services a must have when booking in the UAE,” the report noted.
Further demand is expected to flow from major infrastructure investments in the Northern Emirates, led by the $2.4 billion Wynn Al Marjan Island resort, which is set to broaden the country’s tourism map and generate additional leisure demand across the hospitality ecosystem.
In its latest forecast, Knight Frank said Dubai remains the powerhouse of the UAE hospitality market, with 165,339 existing and upcoming keys, underpinned by the emirate’s D33 Economic Agenda and 2040 Urban Masterplan. The next-largest markets are Abu Dhabi (37,016 keys), Sharjah (14,478 keys) and Ras Al Khaimah (11,902 keys). As of August 2025, Dubai accounts for 55.9% of the UAE’s upcoming hotel supply, underscoring its dominant role in driving the nation’s hospitality growth.
Sustained Tourism Growth
Laurent A. Voivenel, Senior Vice-President – Operations & Development, EMEA and India, and Senior Vice President – Group Human Resources & Talent Development, Swiss-Belhotel International, said the outlook for the UAE hospitality industry remains very strong.
“The country continues to benefit from sustained tourism growth, rising inflows of HNWIs, and strong foreign investment, all supported by stable governance, world-class infrastructure, and progressive economic policies. The strength of the UAE’s airline connectivity, the expansion of cultural and lifestyle attractions, and continued alignment with Tourism Vision 2031 further reinforce the market’s appeal,” Voivenel told BTR.
He said demand continues to grow across luxury, lifestyle, midscale, and long-stay segments.
“With our regional headquarters based in Dubai for nearly two decades, Swiss-Belhotel International’s multi-brand portfolio is well positioned to capture value across diverse segments and rising investor interest in the Emirates,” he said.
Iftikhar Hamdani, Area General Manager - Norther Emirates, Bahi Ajman Palace Hotel and Coral Beach Resort Sharjah, said the UAE's hospitality industry outlook remains exceptionally strong, from the Northern Emirates perspective.
“Ras Al Khaimah is emerging as a particularly dynamic growth engine, with 16 branded residence projects delivering approximately 5,600 units by 2029 and 7,500+ new hotel keys in the development pipeline. The emirate is on track to reach 3.5 million visitors by 2030, representing a 19% compound annual growth rate,” Hamdani told BTR.
He said the market is shifting from expansion to investment maturity, with Abu Dhabi leading performance with 24% RevPAR growth and 20.2% ADR increase.
“HNWIs and foreign investors are particularly attracted to branded residences and integrated resorts, with Wynn Al Marjan Island's 2027 opening expected to transform the Northern Emirates' luxury tourism landscape.”
Moreover, he said Ajman is developing its roads infrastructure rapidly and state-of-the-art new beach areas for the public is about to complete by March 2026.
“Government initiatives, the UAE Tourism Strategy 2031 (targeting 40 million annual hotel guests) and continued infrastructure investments ensure sustained growth across both established and emerging markets within the UAE hospitality sector,” he said.
Shaji Abu Salih, Vice-President of Business Development and Growth for Shaza Hotels and Mysk by Shaza, said the outlook for the UAE’s hospitality industry remains exceptionally strong and structurally resilient.
“The country has positioned itself as a global crossroads for tourism, investment, and talent, supported by progressive government policies, world-class infrastructure, and a clear long-term vision. The continued inflow of tourists, HNWIs, and foreign investors reflects not only confidence in the UAE’s economic fundamentals but also its appeal as a lifestyle and business destination,” Abu Salih told BTR.
From a hospitality perspective, he said this growth is increasingly demand-led rather than speculative. Travellers today are seeking differentiated experiences, cultural depth, and destinations that offer both sophistication and a sense of place.
“This creates significant opportunities for brands like Shaza and Mysk, which are rooted in authentic hospitality, to deliver experiences that go beyond accommodation and create lasting emotional connections with guests,” he said.
Technology Plays Key Role
Hamdani said technology plays an important role in hospitality sector progress. “Building on our existing air-to-water system that transforms humidity into drinkable water at Bahi Ajman Palace , we're expanding sustainability with predictive maintenance systems to reduce energy consumption by 15-20%. By implementing the EndoCool energy-saving additive system, we achieved 14.86% reduction in HVAC energy consumption, saving Dh150,103 annually while preventing 186,049kg of CO² emissions — demonstrating our commitment to sustainable hospitality operations in the Northern Emirates & using new technology being the first hotel in the northern emirates,” he said.
“We're aiming to implementing cutting-edge technology to enhance guest experiences. We're launching AI-powered chatbots for 24/7 multilingual communication across WhatsApp and Messenger, tailored for our regional guests. As long-term Capex project our properties will feature IoT-enabled smart rooms with automated temperature, lighting, and entertainment systems that personalise to individual preferences,” he said.
At Swiss-Belhotel International, Voivenel said technology is a strategic enabler of guest convenience and operational excellence.
“We are prioritising where necessary enhancements in mobile guest services, from digital check-in and personalised messaging to integrated loyalty and preference-based offerings that anticipate needs rather than react to them. Data integration and analytics allow us to tailor experiences in real time, improving both satisfaction and revenue outcomes. However, while continously working on delivering more seamless multi-channel guest interactions, we ensure that the human touch remains an essential part of our service.”
Abu Salih said technology today is no longer just an operational enabler; it is a key component of the guest experience. “At Shaza, our approach to technology is both guest-centric and operationally driven. We focus on solutions that enhance convenience, personalisation, and efficiency without diminishing the warmth and authenticity that define our brands.
“We continue to work on seamless digital touchpoints across the guest journey, including smarter booking interfaces, enhanced CRM-driven personalisation, and mobile-enabled services that allow guests greater control over their stay. At the same time, we are investing in back-of-house systems that strengthen revenue management, sustainability monitoring, and operational excellence. For us, technology must support the art of hospitality, not replace it.”
AI, Robotics and Automation
Voivenel said AI, robotics, and automation play a valuable role in improving consistency, speed, and personalisation, particularly for routine tasks and back-office functions.
Elaborating, he said robotics may be applied where they enhance efficiency without diminishing the guest experience. For example, AI-driven guest preference engines can help personalise communications and offers, while automation can support housekeeping scheduling, predictive maintenance, and contactless service delivery.
“At Swiss-Belhotel International we are working on enhancing the mobile experience for our valued website bookers and our loyalty members by working on a new Mobile App which is scheduled to be launched in first quarter of 2026. That said, these technologies are intended to augment our teams, not replace them. The essence of hospitality remains human connection, empathy, and cultural understanding, and our approach is to use technology to free our people to focus on the moments that matter most to guests.”
Hamdani said agreed that AI, robotics and automation are going to play an important role in hospitality sector. “Yes, we're working to implement AI chatbots — 24/7 multilingual virtual reservation system for rooms and for banquet and events. Aiming to adopt contactless mobile check-in systems.
“We are in talk with Robotics companies for automated food delivery services. We are studying facial recognition check-in biometric technology for seamless arrivals,” he said.
He was of the opinion that AI revenue management will be very effective for the revenue department which will help us in dynamic pricing and occupancy forecasting. “As long-term planning, we are aiming to get robotic housekeeping , automated cleaning and inventory systems. In this way approximately 30-40% operational cost can be reduced. Our goal is to adopt cutting-edge technology with personalized service excellence in Northern Emirates,” he said.
Abu Salih said artificial intelligence, automation, and data intelligence undoubtedly continue to shape our industry. “At Shaza, we see AI as a powerful way to better understand guest preferences, anticipate needs, and deliver more tailored experiences, from personalised recommendations to smarter service recovery.”
“While automation may support certain operational functions, the essence of Shaza lies in human interaction, cultural sensitivity, and service, elements that technology can enhance, but never replace. We believe, technology should remove friction, streamline processes, and empower our teams to spend more time engaging meaningfully with guests,” he said.
Challenges Remain
Voivenel said the hospitality sector in the UAE like any other mature market has its share of challenges. Rising development and operating costs, increasing competition, higher guest expectations, and ongoing challenge of talent availability and retention place pressure on both owners and operators.
“Long-term success depends on understanding the market, ensuring that every project is commercially viable, operationally sustainable, and aligned with evolving guest demands. Collaboration with government tourism bodies and industry associations to support destination competitiveness further strengthens long-term resilience.”
Echoing the similar views, Hamdani said hospitality industry is facing several key challenges attracting and retaining talented hospitality professionals due to rapid growth in UAE and overall, in GCC countries, balancing growth with sustainability commitments, maintaining pricing integrity in a competitive market, and adapting to rapidly changing guest expectations.
“The solution lies in combining innovation with human-centric leadership and strong partnerships with tourism authorities. This approach will help the UAE hospitality sector not just grow but set new global standards,” he said.
Abu Salih said one of the key challenges facing the hospitality industry globally is maintaining differentiation in an increasingly competitive and fast-evolving landscape. “With rapid expansion across markets, brands must work harder to remain relevant, authentic, and consistent. Talent development is another critical challenge, as the industry must continue to attract, retain, and inspire skilled professionals who can deliver exceptional service,” he said.
To address these challenges, Abu Salih said the industry must invest in people as much as it invests in assets.
“Continuous training, leadership development, and a strong service culture are essential. At the same time, hotels must be more agile, embracing innovation while staying true to their brand DNA. Sustainability, cultural authenticity, and community engagement will continue to play a defining role in shaping the next phase of hospitality growth. At Shaza, we believe the future belongs to brands that balance innovation with soul, those that combine modernity with meaning and technology with timeless hospitality values,” Abu Salih concluded.
Key Trends Shaping the Market
· Tourism Vision 2031
· Expo-2020 legacy
· Visa reforms
· Expansion of low-cost carriers
· Digital-first booking by GCC millennials
Integrated-resort gaming licence
· DET-mandated AI guest-experience scores
Projections to 2030
Room Supply: Expected to reach approximately 235,674 rooms across 1,184 hotels
Market Value: Projected to grow, reaching an estimated $35.14 billion by 2030
Dubai's Dominance: Dubai remains the primary hospitality hub, but Abu Dhabi shows rapid growth due to fastest RevPAR growth
Source: Mordor Intelligence and Knight Frank
