Tourists from India to the UAE set to increase

An additional three million international visitors are expected to visit the UAE during Expo 2020, with arrivals from India, Saudi Arabia, Philippines, UK and Pakistan driving this influx, according to the latest research from Colliers International. The report predicts the number of Indian visitors travelling to the UAE will increase by 770,000 between 2020 and 2021, while arrivals from Saudi Arabia will increase 240,000, Philippines and UK both 150,000 and Pakistan 140,000, during the same time period.

Arrivals from India, Saudi Arabia, Philippines, UK and Pakistan dominating increase in visitors to UAE by 2021

At present, the Middle East and Africa remains the overall top source market for the UAE, however, there appears to be a changing dynamic as we look ahead, with the Asia pacific market set to become the largest source of arrivals in the UAE – witnessing a Compound Annual Growth Rate (CAGR) of 9.8% until 2024 – driven in large by the populous Indian subcontinent.

As the UAE gears up to welcome 25 million visitors for Expo 2020, the country’s hospitality sector will play a major role in ensuring the success of the global event, as well as securing a significant number of travellers who will be keen to return to the emirates for a visit post-Expo.

According to the latest data, Dubai had more than 120,000 hotel rooms as of February 2020, with a goal of completing 160,000 hotel rooms by October 2020 to meet the anticipated demand generated by Expo 2020.

Despite average occupancy rates reaching 73% – one of the highest in the world – during the first nine months of 2019, Dubai Tourism reported a decline in RevPar from AED 337 in 2018 to AED 295 in 2019, primarily driven by softening ADR – which dropped from AED 451 in 2018 to AED 400 in 2019 – in response to increased competition from new hotel supply.

As we look ahead to the next 12 months, the outlook for the hospitality sector in the UAE is positive, with demand in the market strong – backed by an increasing number of arrivals from key and emerging markets as a result of Expo 2020 which is now a mere few months away and the imminent introduction of a new tourist visa.