Fitch Solutions has reaffirmed its optimistic outlook for the tourism and hospitality sector in the UAE, anticipating continued growth and a substantial rise in international tourist numbers this year, alongside an increasing demand for hotel accommodations in the short to medium term, projected through 2029.
According to the report, Fitch Solutions expects the number of inbound tourists to the UAE to rise by 7.2% year-on-year in 2025, reaching 28.9 million visitors, compared to 27 million in 2024.
The agency forecasts that the number of arriving tourists will grow over five years to hit 33 million by 2029, with an average annual growth rate of 4.2% during the 2025-2029 period.
This robust growth in the UAE’s tourism sector is expected to drive the development of the hospitality sector in both the short and medium term, leading to an anticipated total of 111.2 million hotel nights in 2025, up from 105.4 million in 2024.
By 2029, the total number of hotel nights is projected to reach 125.3 million.
The agency noted that the rising demand for tourist accommodations will positively impact hotel occupancy rates, which are expected to climb to 80% in 2025, compared to 77.2% in 2024, and to continue increasing to 84.4% by the end of 2029.
Fitch Solutions predicts the number of hotels and establishments in the UAE will rise from 1,550 in 2025 to 1,720 by 2029, resulting in an increase in hotel rooms from 264,900 in 2025 to 294,100 in 2029.
The report emphasizes that the anticipated robust growth in the tourism sector will significantly foster the overall development of the hospitality industry in the short and medium term, highlighting the UAE’s growing stature as a major global tourist destination.
The hotel sector in Dubai is experiencing strong bookings for the remainder of 2025, surpassing last year’s figures, as the emirate continues to attract a growing number of international visitors.
Additionally, the annual report on Dubai’s tourism sector performance, released by the Department of Economy and Tourism, indicates a balanced growth in the hotel market, with projections suggesting that the total number of hotel rooms in Dubai will reach 158,845 by the end of 2025 (including approximately 4,800 new rooms), supported by a 3% increase in the number of four-star hotels.
Data from the Dubai Tourism and Commerce Marketing Department reveals that the Marina area achieved the highest hotel occupancy rate in 2025 at 86%, followed by Palm Jumeirah and Oud Metha at 85%. Al Barsha recorded 84%, while Bur Dubai had an occupancy of 83%, and Jumeirah and the Dubai International Trade Centre stood at 82%. Deira and Jebel Ali reached 80%, and Downtown Dubai had a rate of 77%.
After setting consecutive record figures in 2023 and 2024, Dubai welcomed 5.31 million international visitors between January and March 2025, marking a 3% increase year-on-year. By the end of April, the total number of tourists reached 7.15 million, reflecting a 7% rise compared to the same period in 2024, according to the Dubai Tourism and Commerce Marketing Department.