Dubai has firmly cemented its status as a global tourism hotspot, welcoming an impressive 19.59 million overnight visitors last year. This figure represents a 5% increase over the previous year, reflecting a strong upward trend in the hospitality sector. Not only has the influx of tourists heightened demand, but the city has also expanded its hotel capacity, resulting in improved occupancy rates.

The Surge in Visitor Numbers

A significant milestone was achieved in December when Dubai welcomed over two million visitors in a single month, according to the Dubai Department of Economy and Tourism (DET). This unprecedented leap showcases the city’s growing allure as a premier travel destination. Sheikh Hamdan bin Mohammed, the Crown Prince of Dubai, emphasized that tourism is pivotal for achieving Dubai Economic Agenda D33, which aims to transform Dubai into one of the world’s top three cities for tourism, trade, and investment by 2033.

Tourism acts as a vital force behind economic diversification in Dubai, contributing significantly to gross domestic product (GDP) growth and job creation. The ambitious D33 agenda seeks to propel the emirate’s economy to Dh32 trillion (approximately $8.7 trillion) in the upcoming decade. Enhancing the overall visitor experience and attracting global talent are key objectives of this initiative, demonstrating the importance of tourism to Dubai’s economic framework.

Key Source Markets

In terms of visitor demographics, the Gulf region, along with the MENA areas, accounted for a significant 26% of all visitors to Dubai last year. This includes approximately 2.99 million visitors from the Gulf and 2.17 million from the MENA region. Western Europe remains the foremost source market, contributing 4.1 million visitors, which amounts to 21% of the total. Emerging markets, particularly from the Commonwealth of Independent States and Eastern Europe, along with South Asia, equally contributed with 2.89 million visitors each—accounting for 15% of total arrivals.

The Dubai Department of Tourism undertook a “diversified year-round market strategy,” collaborating with over 3,000 international partners to showcase the emirate to both returning and first-time visitors. This strategic approach has successfully propelled growth in key regions and attracted new residents, investors, and businesses.

Increased Hotel Capacity

At the close of last year, Dubai’s hotel inventory reached 154,264 rooms across 827 establishments, surpassing renowned cities like Bangkok, New York, and Paris in total accommodation offerings. Average occupancy rates have risen to 80.7%, up from 78.2% in 2024. Meanwhile, occupied room nights showed a strong increase of 4% to 44.85 million, indicating that tourists are not only visiting but are also enjoying extended stays, averaging 3.7 nights per visit.

The average daily room rate experienced an 8% increase, reaching Dh579, while revenue per available room—a crucial metric for assessing hotel industry performance—rose by 11% to Dh467. Notably, the Dubai International Airport (DXB) retained its position as the world’s busiest airport for international traffic, welcoming 24.2 million passengers in the third quarter alone.

With ongoing developments planned to meet the growing demand for accommodation and services, including the expansion of Al Maktoum International Airport and the construction of the Dubai Metro Blue Line, Dubai is well-positioned to sustain its momentum as a leading tourism destination in the coming years.