Dubai tourism soars as 94% of visitors report high satisfaction, KPMG data shows

Arabian Business

11-04-2025

Visitors to Dubai are experiencing high satisfaction levels, piloting the hospitality industry in the emirate to new levels, an industry report revealed.
The authorities' efforts to diversify the city's tourism offering, expanding its range of experiences for visitors with culture, adventure, business travel, and food and wellness holidays, are contributing to the rising satisfaction levels for visitors, the latest hospitality report by KPMG said.
'This shift, coupled with infrastructure and technology investments, is positively influencing guest experiences, leading to high satisfaction levels among visitors in 2024, the report said.
Dubai's hospitality excellence
The report showed that the vast majority – 94 per cent – of visitors were satisfied with their hotel stay in Dubai over the past year, compared to 92 per cent the previous year.
It also showed that 80 per cent of visitors were likely to book a stay at a hotel in the city, reflecting strong demand in the sector.
The hotel occupancy rate in Dubai also increased from 77.1 per cent in 2023 to 77.7 per cent last year, with the Average Daily Rate (ADR) increasing from AED 654.4 to AED 666.
Government initiatives, including the Dubai Economic Agenda D33, are positioning Dubai as a top-three global tourism destination by 2033, KPMG said.
A key development in inbound tourism is the extended tourist visa for Indian nationals, which has influenced travel decisions, with 70 per cent of respondents saying they are more likely to visit the UAE due to this policy change, the global consultancy said.
Rising demand for hotel stays
While luxury hotels have always been a significant part of the UAE's hospitality landscape, KPMG's research pointed to a growing demand for unique experiences and personalised services that allow guests to immerse themselves in the local culture.
Hotels are offering curated experiences, such as desert safaris, cultural tours, and traditional dining experiences featuring local cuisine and showcasing Emirati hospitality to meet this demand, it said.
The report also underscored the changing traveller profile to the city, as visitors seek eco-conscious, boutique experiences with a local flavour.
Sidharth Mehta, Partner, Head of Real Estate and Construction at KPMG Lower Gulf, said Dubai is continuously re-inventing itself for the global traveler.
'The UAE's leadership has significantly invested in tourism infrastructure, including developing world-class airports, hotels, resorts, theme parks, and entertainment complexes. This has laid a solid foundation for Dubai's hospitality sector,' he said.
Mehta also said, 'We are witnessing a shift toward more responsible, experience-driven travel, where guests seek deeper cultural connections and sustainability-driven stays.'
KPMG's report also reinforced how technological advancements have increasingly become vital for the hospitality industry, especially as 88 per cent of survey respondents citing modern technology as an important factor in their hotel experience.
The report said looking ahead, Dubai's hospitality industry is witnessing a surge, driven by favourable economic conditions, government initiatives, and a robust real estate sector in both luxury and affordable housing.