Post-pandemic, the tourism and hospitality sector has not only recovered strongly but also emerged as a remarkable pillar of economic development. In the Middle East — a region that has been pivoting away from traditional, oil-based markets toward more diversified economies — the sector is playing an essential role.
In 2023, Middle Eastern destinations, including Dubai, Abu Dhabi, and emerging hotspots like Riyadh and Ras Al Khaimah, saw significant tourist inflows. Dubai, for example, reported its highest-ever annual tourist arrivals: 17.15 million international overnight visitors. In the first two months of this year alone, data from the city’s Department of Economy and Tourism (DET) shows that Dubai has already attracted 3.67 million, up from 3.10 million in the same period last year.
Meanwhile, Ras Al Khaimah’s visitor numbers rose to 1.22 million, marking an 8 percent year-on-year (YoY) increase. Abu Dhabi follows a similar trajectory, attracting nearly 24 million visitors in 2023. It witnessed a 27 percent rise in hotel guests and a 54 percent increase in international guests which bolstered the economy with an approximate AED 49 billion contribution to the UAE’s GDP.
With growing tourism figures, the UAE capital unveiled its newly approved Tourism Strategy 2030 earlier in April. By 2023, the city aims to draw 39.3 million visitors and expand its hotel capacity to 52,000 rooms, potentially creating about 178,000 jobs by 2030.
The economic impact is nothing short of significant. In fact, the World Travel & Tourism Council (WTTC) reported that in 2023, tourism contributed AED 220 billion to the UAE’s GDP, a figure expected to increase to AED 236 billion in 2024.
Saudi Arabia is following a similar path. In 2023, the country welcomed 100 million tourists. Lauded by the World Tourism Organization, this historic milestone saw Saudi Arabia hit its tourism target seven years ahead of its original schedule. Now, it aims to reach 150 million tourists by 2030.
A series of strategic reforms and initiatives have significantly elevated the country’s tourism profile. Last year, Saudi Arabia recorded an impressive 390 percent surge in applications for tourism activity licenses. Moreover, it posted over USD37 billion worth of inbound spending.
This surge in tourism is supported by a deep commitment to diversifying the region’s economy. This strategy — where tourism forms part of the core — capitalizes on what the region already has: rich culture, heritage, archeological wonders, and unique natural allure.
Over the years, the Middle East has also become synonymous with luxury tourism and hospitality, boasting some of the world’s best hotels, resorts, attractions, and retail destinations. In 2023 alone, Dubai Mall has in fact welcomed 105 million visitors, touting itself as “the most visited place on Earth.”
The horizon is poised to expand further as more notable hotel and infrastructure projects are underway.
In Ras Al Khaimah, the emirate revealed that over 7,000 keys are in development — substantially boosting its already impressive portfolio, which currently comprises more than 8,000 rooms. Meanwhile, in Saudi Arabia, NEOM and the Red Sea Project showcase the country’s emphasis on eco-friendly luxury tourism. These endeavors reflect the government’s strategic foresight in recognizing a growing trend among travelers toward sustainability. According to Booking.com’s 2023 Sustainable Travel Report, about 76 percent of people now want to travel more sustainably.
Looking at the broader picture, all this paints a powerful narrative of adaptation and ambition. As the Middle East ascends as a tourism powerhouse, tourists and locals alike can reap several benefits, from a better tourism experience to a sustainable economic growth.
There has never been a better time to visit the Middle East. Come and explore the next destination of choice for tourists from around the world.
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