Despite another challenging year in many respects, the global hotel industry remained resilient in 2024. Through November, global hotel demand reached a staggering 4.8 billion room nights, 102 million more than 2023, resulting in RevPAR growth of 4 percent.
Though RevPAR grew in all regions, performance remains uneven, with Asia Pacific (APAC) still lagging 10 percent behind 2019 levels while the Americas, Europe, and the Middle East have all fully recovered, with RevPAR growth ranging from 17 percent to 26 percent.
Global resort and leisure-heavy markets have started to see some normalization in demand underpinned by slowing consumer spending amid some contraction in savings. JLL expects global hotel investment volume to accelerate in 2025, likely exceeding 2024 by 15 percent to 25 percent.
The Middle East, particularly the GCC, is renowned for its exceptional hospitality and thriving tourism sector, which has become a key driver of economic growth. Nations including the UAE, Saudi Arabia, and Qatar are implementing strategic campaigns to diversify their economies through this sector.
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For instance, in Qatar, 2024 saw a 25 percent surge in international tourists. The country welcomed 5 million visitors, with 41 percent coming from other GCC countries. Travelers from India, the U.K., the U.S., and Germany are also substantial. By 2030, Qatar aims to nearly triple its visitor numbers and double tourism spending. The goal? To push the sector’s GDP contribution to 10 to 12 percent.
Saudi Arabia is another tourism hub in the region, recording around 30 million international visitors in 2024. In total, the country attracted 127 million travelers, and most of them focused on domestic tourism. Events like Riyadh Season and Jeddah Season — highly anticipated multi-month entertainment and tourism initiatives — have played a major role in attracting visitors and boosting the country’s tourism industry.
The UAE’s tourist magnets — Dubai and Abu Dhabi — also boast impressive figures. In 2024, Dubai welcomed 18.72 million international overnight visitors. Meanwhile, hotels maintained strong occupancy rates at 78.2 percent, while revenue per available room (RevPAR) rose to $114. Meanwhile, the Department of Culture and Tourism – Abu Dhabi (DCT Abu Dhabi) announced that the emirate’s hotels received 4.8 million guests year-to-date as of October 2024, reflecting a 26 percent increase in international guests compared to 2023.
Additionally, the UAE capital welcomed more than 3.9 million visitors to its cultural events and landmarks. This is a 21 percent rise from the previous year.
Strategic campaigns
Success in any sector cannot be achieved without well-planned strategies and campaigns. In Qatar, the recently launched “Amaze Yourself” campaign targets 10 international markets, and the goal is to attract families, couples, and friends to visit the country. It has also introduced a revamped “Qatar Stopover” campaign, designed for short-stay travelers looking to explore Qatar during stopovers of less than 24 hours.
Saudi Arabia is a testament to this. Apart from big events like Riyadh Season and Jeddah Season, authorities also have bold initiatives such as “This Land is Calling,” launched in August last year. This aims to attract tourists from the U.K., France, Italy, Germany, and the U.S. A month later, the kingdom launched another campaign focused on Indian travelers, followed by outreach efforts in China.
“We initially focus on domestic tourists, then we focus on tourists in the region, which are the Gulf countries, and we make sure that the Kingdom of Saudi Arabia attracts citizens of the Gulf countries to it, and to enjoy the Riyadh Season, Jeddah Season, the Red Sea and Abha in the summer… and others. Then we reach European countries, neighboring countries, China and India, and these markets are very important,” Minister of Tourism Ahmed Al Khateeb said during a panel discussion in Davos this year.
Dubai has also embraced innovative marketing, rolling out high-profile campaigns such as “Dubai, What’s Not to Love?” and “If You Go, You Know.” These campaigns feature celebrities and influencers to highlight Dubai’s diverse attractions. Collaborations with Bollywood stars and Korean actors have helped attract audiences from key markets, reinforcing Dubai’s status as a leading tourism destination.
“As we move forward into 2025, Dubai will continue charting new avenues for growth. By transcending traditional tourism, fostering high-impact investment opportunities, nurturing entrepreneurship, and magnetising global talent, we will reinforce Dubai’s position as not only a preferred destination but also as a cornerstone of global economic leadership and innovation,” His Excellency Helal Saeed Almarri, director-general of the Dubai Department of Economy and Tourism (DET), remarked.
On infrastructure and innovation
A thriving tourism industry needs a strong foundation, and that foundation is infrastructure. Think of hotels, airports, transportation networks, and entertainment hubs.
Last year, Dubai has witnessed a surge in high-end hotel openings, including One&Only One Za’abeel, SIRO One Za’abeel, and The Lana Dorchester Collection.
By the end of 2024, Dubai’s hotel inventory had grown to 154,016 rooms spread across 832 establishments, up from 150,291 rooms in 2023. Meanwhile, Abu Dhabi’s Zayed International Airport has undergone significant expansion — as it now serves 24 airlines. Additionally, Etihad Airways, Wizz Air Abu Dhabi, and Air Arabia have expanded their routes.
On the cultural front, the UAE capital is developing major attractions, including a Harry Potter-themed expansion at Warner Bros. World and the upcoming Saadiyat Cultural District. Saudi Arabia is well-known for its Red Sea project, which boasts infrastructure that blends sustainability and luxury. However, it’s more than just that. A beacon of innovation, this tourist destination is also tapping into other unique drivers of tourism growth — including yacht tourism.
In line with the ambitious Saudi Vision 2030, the Saudi Red Sea Authority (SRSA) introduced key regulations to enhance marine infrastructure, sustainability, and investment. It has issued 29 tourism licenses, including those for yacht chartering companies, marina operators, and technical service providers.
With all these — robust campaigns and world-class infrastructure — the Middle East is strategically leveraging tourism and hospitality to boost economic activity. And as this sector continues to thrive, the region moves closer to achieving its broader economic diversification goals.
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