UAE expects 8.92m visitors from top five source markets by 2023
With 20 million annual visitors expected to visit Dubai by 2020, the overall hospitality supply in the emirate is expected to increase by 39% to meet this demand
Research released by Arabian Travel Market (ATM) reveals that the UAE is set to welcome 8.92 million visitors from top five source markets by 2023.
The Expo 2020 and its legacy, District 2020, are expected to have a positive long-term influence on the growth of inbound arrivals to the UAE from the country’s top five source markets between 2018 and 2023, according to the data.
Looking at the country’s top three source markets, the number of Indian visitors travelling to the UAE will increase at a CAGR of 7% to 3.01 million in 2023, while arrivals from Saudi Arabia and the UK will witness an increase of 2% and 1% to 1.76 million and 1.28 million respectively over the same period.
The UAE’s top source market rankings are expected to remain mostly unchanged post-Expo 2020; however, the latest research from Colliers International, in partnership with ATM, reveals the Russian and Chinese source markets will show above average annual growth rates for inbound passenger arrivals.
Arabian Travel Market exhibition director ME Danielle Curtis said in a statement: "The number of Russian tourists travelling to the UAE will increase at a Compound Annual Growth Rate (CAGR) of 12% to 1.6 million in 2023, while the number of Chinese tourists visiting the UAE will increase at a CAGR of 8% to 1.27 million over the same period, according to the data."
Curtis said: “Taking a look at the other key drivers, besides Expo 2020, Russian visitors to the UAE have grown in recent years, due to the introduction of additional and direct airline routes. Russian visitors also now benefit from relaxed UAE visa regulations and rising oil prices are helping to strengthen the Russian rouble, making the UAE more affordable.
“Regarding Chinese visitors, according to some analysts China’s middle-class will swell to 338 million households by 2020, a 13% increase in just five years. Moreover, by 2030 35% of China’s 1.4 billion population will have $10,000 of annual disposable income, up 10% from 2018. Therefore, the growth potential for both markets is significant.”
Click through to find out more about the UAE's hotel supply over the next few years...
With 20 million annual visitors expected to visit Dubai by 2020, plus an additional five million between October 2020 and April 2021 – 70% of which will come from outside the UAE – the overall hospitality supply in the emirate is expected to increase by 39% from 59,561 keys in 2017 to 82,994 in 2021 to meet this demand.
Meanwhile in neighbouring emirate Abu Dhabi, the number of rooms across three, four and five-star properties is forecast to grow 13% from 21,782 in 2017 to 24,565 in 2021. “Just as Dubai and Abu Dhabi have their own unique set of visitor attractions, we are now seeing the northern emirates carving stronger identities, supported by their respective tourism authorities. And, while Ras Al Khaimah, Sharjah and Fujairah are smaller than Dubai and Abu Dhabi in terms of supply, they are evolving quickly,” Curtis said.
Ras Al Khaimah is working on an unprecedented pipeline, which will more than double the number of hotel rooms, from 4,019 in 2017 to 9,078 in 2021, the largest proportionate pipeline in the GCC.
The number of hotel rooms in Sharjah is also expected to more than double between 2017 and 2021, taking the total number of hotel rooms in the emirate to 5,295 by 2021. Meanwhile, Fujairah will add almost 500 keys over the same period taking its total stock to 2,543 rooms.
ATM welcomed over 39,000 people to its 2018 event, and its 2019 edition will take place at Dubai World Trade Centre from 28 April – 1 May 2019.