Strategic Position
Tourism and hospitality represent one of the most visible and strategically important pillars of the UAE’s post-oil economy. The sector contributes approximately 12 percent of GDP when direct and indirect effects are measured, and it employs a substantial share of the private sector workforce across hotels, restaurants, entertainment, transport, and retail. The UAE’s tourism infrastructure — airports, airlines, hotel inventory, entertainment complexes, and cultural institutions — is among the most developed in the world, enabling the federation to compete not only with regional peers but with established global destinations.
The national ambition is to attract 40 million visitors annually by 2031, a target that requires sustained expansion of capacity, diversification of source markets, and development of tourism offerings beyond the traditional shopping and beach model that defined Dubai’s initial rise. Each emirate is now pursuing a differentiated tourism strategy, creating a federated proposition that offers visitors cultural depth, adventure, luxury, business, and wellness options across a compact geography.
Dubai: The Commercial Tourism Engine
Dubai is the UAE’s dominant tourism market and one of the most visited cities in the world. The emirate welcomed over 17 million international overnight visitors in recent years, supported by an inventory exceeding 800 hotels and 150,000 hotel rooms. Dubai’s tourism ecosystem is anchored by a combination of mega-attractions (Burj Khalifa, Dubai Mall, Palm Jumeirah), a year-round events calendar (Dubai Shopping Festival, Art Dubai, Dubai Expo legacy district), and a business travel infrastructure that includes the Dubai World Trade Centre and a dense concentration of conference hotels.
Hotel revenue performance has been consistently strong, with average daily rates and revenue per available room among the highest globally. The luxury segment — driven by brands such as Jumeirah, Atlantis, Armani, and Bulgari — commands premium pricing, while the mid-market and economy segments have expanded to capture a broader visitor demographic, particularly from South Asia, Southeast Asia, and Africa.
The Department of Economy and Tourism (DET) oversees Dubai’s tourism strategy, with a focus on diversifying source markets, extending average length of stay, increasing repeat visitation, and integrating digital services across the visitor journey. Dubai’s long-stay visa offerings and remote work programmes have also blurred the line between tourism and residency, creating a new category of extended-stay visitors who contribute to hotel, apartment, and retail revenues over longer periods.
Abu Dhabi: Cultural and Experiential Tourism
Abu Dhabi has pursued a deliberately distinct tourism strategy centred on cultural institutions, motorsport, and nature-based experiences. The Louvre Abu Dhabi, opened in 2017 on Saadiyat Island, is the centrepiece of a cultural district that will eventually include the Guggenheim Abu Dhabi, the Zayed National Museum, and the Natural History Museum Abu Dhabi. This cultural cluster positions the capital as a destination for art, history, and heritage tourism with global credibility.
Yas Island serves as Abu Dhabi’s entertainment hub, featuring the Yas Marina Circuit (home to the Formula 1 Abu Dhabi Grand Prix), Ferrari World, Yas Waterworld, Warner Bros. World, and SeaWorld Abu Dhabi. The island’s integrated resort model — combining theme parks, hotels, dining, shopping, and a golf course — generates high visitor density and per-capita spending.
The Department of Culture and Tourism - Abu Dhabi (DCT Abu Dhabi) has also invested in eco-tourism and heritage tourism, promoting the mangrove forests of Jubail Island, the Al Ain Oasis (a UNESCO World Heritage Site), and the desert experiences of the Al Dhafra region. Abu Dhabi’s visitor numbers have grown steadily, with the emirate targeting 39.3 million hotel guest nights by 2030.
Northern Emirates: Emerging Destinations
Ras Al Khaimah has emerged as the UAE’s fastest-growing tourism market by percentage growth, carving out a niche in adventure and nature tourism. The emirate’s Jebel Jais — the UAE’s highest peak — hosts the world’s longest zipline and a growing network of hiking and outdoor experiences. RAK’s strategy emphasises sustainable tourism and has attracted international hotel brands seeking differentiated positioning away from the urban density of Dubai and Abu Dhabi.
Sharjah has leveraged its UNESCO designation as a Cultural Capital and invested in museums, art exhibitions, and heritage districts. Ajman, Fujairah, and Umm Al Quwain are developing beach, diving, and eco-tourism offerings that complement the larger emirates’ propositions.
Airline Capacity and Connectivity
The UAE’s tourism sector is inseparable from its aviation infrastructure. Emirates, Etihad Airways, flydubai, and Air Arabia collectively operate one of the densest international route networks in the world, connecting the UAE to over 250 destinations. Dubai International Airport (DXB) is the world’s busiest airport for international passenger traffic, and Abu Dhabi’s Midfield Terminal at Zayed International Airport has expanded the capital’s capacity. This connectivity provides a structural advantage that few competing destinations can replicate — the UAE is within an eight-hour flight of approximately two-thirds of the world’s population.
Cruise Tourism
The UAE has invested heavily in cruise infrastructure, with Dubai, Abu Dhabi, and Fujairah operating dedicated cruise terminals. The winter cruise season attracts major operators including MSC Cruises, Costa Cruises, and AIDA, with the UAE serving as both a home port and a port of call on Arabian Gulf and Indian Ocean itineraries. Cruise tourism contributes to visitor numbers, port revenues, and ancillary spending in retail, dining, and excursions.
Outlook Under We the UAE 2031
The 40 million visitor target by 2031 requires coordinated expansion across aviation capacity, hotel inventory, entertainment infrastructure, and visa facilitation. The sector is being supported by continued liberalisation of visa regimes, investment in digital tourism services, and development of new attractions and cultural institutions. Tourism is not merely an economic contributor — it is the UAE’s most visible expression of soft power, global connectivity, and national brand identity.