DUBAI: The World Travel and Tourism Council's 2023 Economic Impact Research predicts that UAE travel and tourism will regain pre-pandemic levels this year.
The anticipated scenario is that the industry will make a noteworthy contribution of AED180.6bn ($49bn) to the UAE economy, reaching a level near the 2019 peak of AED183.4bn ($50bn) by the conclusion of 2023, falling short by a mere 1.5 percent.
This significant contribution represents nearly 10 percent of the total economy, showcasing the substantial impact of the UAE tourism industry.
Moreover, the WTTC foresees a boom in the sector, projecting the creation of nearly 7,000 jobs this year, surpassing the pre-pandemic peak of 745,100 and employing over 758,000 individuals in various travel and tourism roles.
Last year alone, the GDP contribution of the travel and tourism sector experienced remarkable growth, surpassing 60 percent to reach approximately AED167bn, which accounted for 9 percent of the country's economy.
In addition to the GDP growth, the sector generated over 89,000 jobs, surpassing the previous year's numbers by an additional 6,000 and exceeding 2019 levels.
WTTC’s latest EIR Data shows that Travel & Tourism is set to contribute AED 180.6 billion to the UAE economy by the end of 2023, only 1.5% behind pre-pandemic levels. 🇦🇪
Download the UAE EIR Factsheet 👉 https://t.co/DuFfYb7Lmx#TravelAndTourism #UAE pic.twitter.com/n4TeVv8sUy
In the year 2022, the UAE witnessed the revival of global explorers flocking to its shores, as prominent source markets for international arrivals included India, Oman, Saudi Arabia, and the United Kingdom.
International visitors made a substantial contribution of AED117.6bn to the national economy, indicating a year-on-year growth of 65.3 percent, although slightly trailing 2019 levels by 19 percent.
Domestically, 2022 witnessed a 35.7 percent increase in spending, reaching AED46.9bn, which was 10.6 percent higher than the pre-pandemic figures.
This growth in domestic spend reflects the resilience and attractiveness of destinations like Dubai and Abu Dhabi, which have consistently appealed to international travelers.
Julia Simpson, the President and CEO of WTTC, expressed optimism about the recovery of the UAE's travel and tourism sector, emphasizing its increasing popularity among international travelers.
She highlighted the role of Dubai International, one of the world's busiest and successful airports, in facilitating the UAE's growth as a gateway to the Middle East.
Looking ahead, the WTTC projects further growth for the sector. By the end of this year, the contribution of the travel and tourism sector is expected to match that of 2019, and over the next decade, it is anticipated to outpace the national GDP, creating more than 114,000 new jobs, representing one in nine jobs in the UAE.
On a global scale, the WTTC forecasts that the sector's GDP contribution will reach AED235.5bn ($64bn) by 2033, amounting to 10.2 percent of the UAE economy. Over the next decade, the travel and tourism industry is expected to employ more than 872,000 people, accounting for nearly 12 percent of all jobs in the country.
In 2022, the Middle East's travel and tourism sector made a substantial contribution of over AED1.2tn ($327bn) to the regional economy, although it remained 25.3 percent below the peak of 2019.
However, by the end of this year, the WTTC predicts that the regional sector's GDP contribution will surpass AED1.5tn ($413.2bn), inching closer to the highpoint of 2019.
According to the WTTC's latest Economic Impact Report, the sector employed over 6.8 million people in the region in 2022, representing an increase of 865,000 compared to the previous year, but still 8.7 percent lower than the peak of 2019.
Nevertheless, it is anticipated that the sector will nearly recover the jobs lost during the pandemic by the end of this year, with only a 2 percent deficit from pre-pandemic levels.
Looking ahead to the next decade, the Travel and Tourism sector is projected to make a substantial contribution of nearly AED2.5tn ($681bn) and employ more than 9.8 million people. These figures highlight the sector's potential for growth and its significant role in the region's economy.
The WTTC's report underscores the positive trajectory of the national Travel and Tourism sector, emphasizing the UAE's continuous rise in popularity among international travelers.
The country's bustling and successful airports, particularly Dubai International, act as gateways to the Middle East, further boosting its appeal as a tourist destination.
The resilience and strong leadership exhibited by cities like Dubai and Abu Dhabi have been instrumental in maintaining their allure for international travelers.
These cities have demonstrated an unwavering ability to recover and adapt, further solidifying their position as key tourist destinations.
The WTTC's forecasts paint an encouraging picture for the future, with the travel and tourism sector poised to make significant contributions to the UAE's economy.
By capitalizing on its strengths and continuing to attract global travelers, the sector's GDP contribution is expected to surpass AED235.5bn ($64bn) by 2033, accounting for 10.2 percent of the country's economy.
Furthermore, over the next decade, the sector is set to create employment opportunities for over 872,000 people across the country, representing nearly 12 percent of all jobs.
This indicates the sector's potential to drive economic growth and provide livelihoods for a substantial portion of the population.
The Middle East's travel and tourism sector has proven its resilience and ability to bounce back. Despite facing challenges during the pandemic, it contributed over AED1.2tn ($327bn) to the regional economy in 2022.
Although this figure was 25.3 percent below the peak of 2019, the sector is poised to make a remarkable recovery by the end of this year, with the WTTC forecasting a GDP contribution of over AED1.5tn ($413.2bn).
The region's travel and tourism industry remains a significant source of employment, employing over 6.8 million individuals in 2022. Although there was an 8.7 percent decrease compared to the peak of 2019, the sector is steadily regaining its workforce, and by the end of this year, it is expected to have a minimal 2 percent deficit from pre-pandemic levels.
The WTTC's report showcases the remarkable recovery and growth potential of the UAE's travel and tourism sector. With its contribution to the national economy projected to reach pre-pandemic levels, the sector's positive trajectory is set to continue.
By attracting international visitors, creating employment opportunities, and making significant GDP contributions, the travel and tourism sector is poised to play a vital role in the UAE's future prosperity.
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