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    Home»Other News»Tourism has become a vital economic driver for Gulf states
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    Tourism has become a vital economic driver for Gulf states

    Dr Issac PJBy Dr Issac PJSeptember 29, 2025Updated:October 1, 2025No Comments4 Mins Read
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    Tourism has become a vital economic driver for Gulf states
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    The UAE has emerged as the powerhouse of the GCC’s travel and tourism resurgence, with Dubai at the forefront of a record-breaking post-pandemic rebound that has redefined the region’s global tourism landscape. 

    Backed by visionary leadership, massive infrastructure investments, and sustained inflows of international visitors, the UAE continues to drive the sector’s transformation into a major pillar of Gulf economies, travel industry experts said.

    According to the Gulf Statistical Centre’s World Tourism Day report, the GCC’s travel and tourism industry contributed $247.1 billion to the region’s GDP in 2024 — a 31.9 per cent jump over 2019. The sector’s share is projected to surge further to $371.2 billion or 13.3 per cent of total GDP by 2034. Much of this remarkable growth is attributed to the UAE’s performance, particularly Dubai’s stellar momentum as one of the world’s most visited destinations.

    Tourism has become a vital economic driver for Gulf states, generating $4.3 billion in employment value in 2024 and expected to create 1.3 million new jobs by 2034. Women now make up about 13 per cent of the GCC’s tourism workforce — a 73 per cent increase since 2019 — reflecting the sector’s growing role in advancing gender participation and youth employment. The report also points to the GCC’s strong sustainability progress, with protected natural areas now covering 19 per cent of the region’s landmass and intra-GCC tourism expanding sharply.

    Dubai remains the standout performer, continuing its upward trajectory as the region’s tourism hub. The emirate welcomed 18.72 million international visitors in 2024, up from 17.15 million the previous year — a 9.1 per cent increase. Visitor spending reached around $179.8 billion (Dh660 billion), underscoring Dubai’s global tourism leadership. The city’s 832 hotels, offering more than 154,000 rooms, recorded near-record occupancy rates.

    “The UAE’s aviation dominance further fuels this growth. Dubai International Airport (DXB) handled a record 92 million passengers in 2024, a six per cent rise year-on-year, consolidating its position as the world’s busiest international airport,” says Manoj K. John, founder and CEO of Dubai-based AeroConnections. The economic contribution of DXB alone runs into tens of billions of dirhams annually, reinforcing the symbiotic relationship between tourism and air connectivity, added John.

    The trend has accelerated in 2025. Dubai welcomed 9.88 million overnight visitors in the first half of this year, almost matching the full-year total of 2024. With average hotel occupancy topping 80.6 per cent and passenger traffic through DXB reaching 46 million in six months, the emirate is on track to join the world’s top three tourism destinations.

    Across the UAE, the sector continues to set new benchmarks. International visitor spending is projected to hit a record Dh228.5 billion in 2025 — nearly 37 per cent higher than pre-pandemic levels. Tourism investment in the UAE rose to Dh28.8 billion in 2023 and is expected to reach Dh35.2 billion soon. The country’s tourism-driven growth has played a key role in pushing non-oil GDP to 77 per cent of total output in early 2025, according to the latest official data.

    Dubai’s success stems from more than its world-class attractions and infrastructure — it is the result of strategic vision, according to travel industry professionals. “The emirate has evolved from being a major transit hub to a holistic destination, offering leisure, luxury, culture, and sustainability in equal measure. Initiatives to promote green tourism, smart hospitality, and heritage experiences have extended visitor stays and boosted repeat arrivals,” Baby Varghese of Uranus Travels, said 

    Intra-GCC tourism is also flourishing. About 19.3 million GCC residents travelled within the region in 2024, representing 26.7 per cent of all international arrivals. The trend highlights a growing appetite for regional travel, driven by seamless mobility, shared cultural affinity, and expanding hospitality ecosystems.

    While other Gulf states such as Saudi Arabia and Qatar are catching up with major tourism investments, the UAE — and Dubai in particular — continues to set the pace. Its tourism model, integrating aviation, retail, entertainment, and real estate, has become a benchmark for the wider region.

    As the GCC deepens economic diversification, tourism stands as one of its most resilient growth engines — with the UAE as its undisputed driver. From record-breaking visitor numbers to its leadership in sustainability and innovation, the UAE has turned travel and tourism from a cyclical sector into a defining force of the region’s new economic era.

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    Dr Issac PJ

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