Dubai to Add 34 New Hotels By December

Dubai is set to witness opening of as many as 34 new hotels by end of this year and another 18 in 2025, bringing their total to 757, according to a research from Cavendish Maxwell, the Middle East region’s leading independent firm of chartered surveyors and property consultants operating across the Middle East.

In its findings on the performance of Dubai’s Hospitality Sector in H1 of 2024, the research showed that projects within the luxury segment anticipated for completion by 2024 include Ciel Dubai Marina (1,209 keys), Viceroy Dubai Business Bay (433 keys), Port De La Mer Hotel (400 keys), Heart of Europe Marbella Hotel (196 keys), and Heart of Europe Berlin Hotel (200 keys).  

Additionally, luxury supply is projected to experience significant growth in 2025, with 8 new openings adding approximately 1,140 rooms.

On the other hand, Dubai, which remained a leading tourist destination, has welcomed 9.31 million overnight guests in the first half of 2024, a 9% increase from 8.55 million visitors during the same period last year.

“This performance reflects the strategic vision outlined by Sheikh Mohammed Bin Rashid Al-Maktoum, the ruler of Dubai, as detailed in the Dubai Economic Agenda D33. This agenda aims to position Dubai as one of the top three global tourism destinations,” the report said.

It further said that Dubai continues to experience robust growth in the tourism sector, surpassing pre-pandemic levels and positively contributing to economic growth.

The tourism sector contributed to the UAE’s economy, registering an 11.7% increase in Gross Domestic Product (GDP) in 2023, amounting to $59.90 billion. Government officials stressed that the sector is anticipated to contribute 12% to the UAE’s GDP, equating to $64.25 billion in 2024.

Airport Arrivals

Of Dubai’s two international airports, Dubai International Airport (DXB) and Al Maktoum International Airport (DWC), DXB handled nearly 87 million passengers in 2023, registering a 31.5% y-o-y increase and approaching the annual traffic record of 89.1 million set in 2018, the report said.

In the first half of 2024, DXB welcomed a record 44.9 million guests, representing an 8% rise compared to the same period last year. DXB has revised its 2024 passenger forecast to 91 million, reflecting robust growth in the aviation sector. This update represents an increase from the earlier estimate of 88 million passengers.

With huge influx of passengers, Dubai has announced in April 2024 a significant expansion project for DWC airport. This initiative includes building a new passenger terminal valued at approximately $35 billion.

“This expansion of DWC airport will put the emirate on the map for the world’s best, biggest, and busiest air passenger terminal to transport 260 million travellers a year once completed,” the report said.

Despite an increase in visitor numbers, Dubai’s occupancy levels remained stable y-o-y, with only a modest rise of 0.1%, reaching 78%. The luxury and upper-midscale segments experienced the most significant gains, rising by 2% and 1.6%, respectively. However, the upscale sector saw a slight decline of 0.8% compared to 2023.