At the start of the new year, Dubai recorded a milestone in its hospitality and tourism sector, with hotel occupancy rates climbing above 81% during the first half of 2025, marking strong growth of nearly 4.5% compared to the same period last year. At the same time, the number of international visitors approached the 10-million mark, reflecting the strong global appeal of the emirate as a travel destination.
The momentum doesn’t stop there. The average daily rate (ADR) rose notably to more than AED 745, a jump of over 5%, further signaling the growing demand for hotel stays in the city.
Dubai’s hotel supply is also expanding rapidly. The emirate plans to launch 19 new properties with more than 5,000 rooms by the end of the year, bringing the total inventory to around 157,000 keys across 748 hotels. About 900 rooms were delivered only in the first half of this year.
The luxury segment remains dominant: nearly two-thirds of Dubai’s hotels fall under the luxury and upscale categories, while the rest are divided between mid-scale and budget properties. Most upcoming projects are also within the higher-end segment.
When it comes to source markets, Western Europe leads with nearly 12% growth, followed by the CIS and Eastern Europe, and the GCC countries, all of which posted significant gains at varying levels. Gradual recovery has also been observed from the Americas and Australia.
Dubai continues to attract travelers despite challenges. Even with temporary disruptions in air traffic, Dubai International Airport handled over 2% growth in passenger traffic, while Al Maktoum International (Dubai World Central) posted an impressive 36% surge.
The developments are not limited to Dubai alone. Abu Dhabi recorded remarkable increases in average daily rates—more than 28% in urban hotels and over 21% in resorts. Ras Al Khaimah and Fujairah also posted solid gains, supported by growing demand for nature-based and adventure tourism.
Overall, the first half of 2025 marked a strong new phase in the UAE’s tourism journey, fueled by a refreshed hotel pipeline, balanced increases in global demand, and steady expansion of the hospitality infrastructure.
