Dubai's hospitality sector is set for major expansion, with 11,300 new hotel rooms expected by 2027, including 4,620 opening in 2025, according to a report by Cavendish Maxwell.
This surge in hotel development will generate approximately 15,000 direct hospitality jobs and up to 50,000 indirect roles in sectors such as retail, logistics, entertainment, and tourism services.
Economic Impact of Hotel Expansion
Industry experts highlight the broader economic benefits of this growth. Iftikhar Hamdani, Area General Manager of Bahi Ajman Palace and Coral Beach Resort Sharjah, emphasized the significant employment ripple effect:
"For every direct job in hospitality, 2-3 indirect roles emerge across supporting industries. This expansion isn’t just about adding hotel rooms—it strengthens Dubai’s workforce, amplifies revenue streams, and reinforces its status as a global tourism hub."
Hamdani noted that Dubai’s high-end hospitality sector requires an average of 1.3 employees per room, ensuring operational efficiency based on service levels and amenities.
Luxury Segment Leading Growth
The report projects that in 2025, Dubai will add 4,619 rooms across 20 hotels, with 36% of these in the luxury segment (1,685 rooms across eight hotels). The upper upscale segment follows, contributing 1,520 rooms across six properties.
Dubai’s hospitality industry continues to thrive, with overnight visitors increasing by 9.1% year-on-year in 2024, reaching 18.72 million. Tourism's contribution to the UAE’s economy grew to AED 236 billion in 2024, up from AED 220 billion in 2023, representing 12% of the national GDP.
Dubai’s Hospitality Market in 2024
Dubai added 4,255 new rooms across 19 hotels in 2024, pushing the city’s total hospitality inventory to 724 establishments with 151,245 rooms. The luxury sector dominates, with nearly 70% of hotel offerings classified as high-end accommodations.
Hotel occupancy levels rose to 78% in 2024, marking a 1% increase from 2023, while average daily room rates remained stable at AED 690.
Future Outlook
Looking ahead, Dubai is poised for continued growth, with another 20 hotels set to open in 2025. The city’s robust hospitality industry and strategic tourism investments further cement its status as a world-class destination for business and leisure.
"Dubai’s hospitality and tourism sectors continue to break records, reinforcing the city’s global leadership in luxury travel and hotel innovation,"
said Gergely Balint, Associate Partner at Cavendish Maxwell.
With sustained growth in tourism and real estate, Dubai remains a magnet for global investors, promising new opportunities for employment and economic expansion in the years ahead.
News Source: Khaleej Times
