Dubai hotel occupancy rate rises to 77.7% in 2024
According to KPMG's latest Hospitality Report, the Average Daily Rate (ADR) increased from Dh654.4 to Dh666.
KPMG's survey showed that 94 per cent of tourists in Dubai were satisfied with their hotel stay over the past year compared to 92 per cent in the previous year, and 80 per cent were likely to book a stay at a hotel in the city, reflecting strong demand in the sector.
Government initiatives, including the Dubai Economic Agenda D33, are positioning Dubai as a top three global tourism destination by 2033. 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.
While luxury hotels have always been a significant part of the UAE's hospitality landscape, KPMG's research points to a growing demand for unique experiences and personalized 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.
The report also underscores the changing traveller profile to the city, as visitors seek eco-conscious, boutique experiences with a local flavour. 'Dubai hotels and resorts are adding eco-friendly services and wellness-focused amenities to their offerings, with restaurants incorporating local and organic produce into their menus, supporting sustainable agriculture, and reducing their carbon footprint,' the KPMG report said.
Last week, data from the UAE Ministry of Economy showed that revenue generated by UAE hotels rose to Dh45 billion in 2024, representing a three per cent gain year on year. Sixteen hotels opened over the course of the year, with the number of hotel rooms rising three per cent to reach 216,966 at the end of 2024. The number of hotel guests rose 9.5 per cent year on year to 30.8 million in 2024. 'This milestone represents 77 per cent of the hotel guest target set by the 'National Tourism Strategy 2031' - achieved seven years ahead of schedule. With the current growth trajectory, we are well on track to achieving the strategy's ambitious goal of attracting 40 million hotel guests,' said Abdulla bin Touq Al Marri, Minister of Economy and Chairman of the Emirates Tourism Council.
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. 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 reinforces how technological advancements have increasingly become vital for the hospitality industry, especially as 88 per cent of survey respondents cite modern technology as an important factor in their hotel experience. Artificial Intelligence, augmented reality, and data analytics are allowing hotels to personalise services, streamline operations, and anticipate guest needs. Dubai hotels are increasingly adopting digital solutions for bookings and check-ins, concierge services, and loyalty programs to create seamless and intuitive experiences.
Looking ahead, Dubai's hospitality industry is witnessing a surge, driven by favorable economic conditions, government initiatives, and a robust real estate sector in both luxury and affordable housing. 'However, the sector will need to prioritize innovation, sustainability, and unique experiences to maintain its global competitiveness,' the KPMG report said.
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