As winter settles across the Emirates and peak travel season gathers momentum, the numbers tell a familiar, and not wholly unexpected, story. UAE is seeing robust growth in its tourism numbers with the sector carving out a deeper role in the country’s economic narrative with record-breaking force.
Latest industry data shows tourism now contributes roughly 14 percent of the UAE’s GDP, delivering an estimated $70 billion to the economy in 2025. It is a milestone that reflects years of strategic investment, from aviation and hospitality to culture, retail and infrastructure, all converging at a moment when global travel demand remains resilient despite persistent economic uncertainty elsewhere.
Tourist appetite remains high showing little sign of fatigue or let-up. Hotel check-ins rose by nearly 5 percent year-on-year to around 23 million in the first nine months of 2025, marking a new high. Occupancy rates have also held firm at approximately 80 percent, highlighting sustained demand even as tighter financial conditions weigh on discretionary spending in many parts of the world.
This trend holds good for the markets too. With the Covid-era travel slump now firmly in the rear-view mirror, investors have been returning to the sector in force. This is seen in an uptick in confidence in travel and leisure stocks with companies such as Expedia, Booking.com, Trip.com and Hilton delivering strong performance as international travel demand holds up.
According to Farhan Badami, Market Analyst at eToro, tourism’s strength has become increasingly central to investment sentiment tied to the UAE’s growth story.
“Tourism is not just a growth story for the UAE economy — it’s a key pillar supporting a wide range of sectors and listed companies. Airlines, hotel groups and travel platforms all stand to benefit as visitor numbers continue to rise.”
The UAE economy is seeing this multiplier effect too with tourism’s impact showing a positive ripple effect lifting retail sales, transport usage, and real estate activity, while improving earnings visibility and sentiment across multiple sectors. The flow of visitors results in higher footfalls in malls, bookings in hotels, and rising demand for lifestyle-led experiences.
“What’s particularly important is how tourism reinforces the UAE’s long-term diversification narrative,” Badami added. “Strong visitor inflows help reduce reliance on hydrocarbons while supporting consumer activity and property markets, backed by world-class infrastructure and the UAE’s position as a global aviation hub.”
There are, however, some risks on the horizon. Tighter global economic conditions could yet temper discretionary travel, particularly in price-sensitive segments. Rising cost of living and a global job crisis could force families to re-assess their budgets and which would impact tourism spending in 2026. This is still not expected to impact the UAE as much as it hurts other destinations.
The UAE’s ability to attract record visitors despite market uncertainty continues to highlight its competitive edge as both a premium leisure destination and a global business crossroads, reinforcing confidence in regional growth heading into 2026.
At a company level, beneficiaries are already clear. Developers such as Emaar and Aldar gain from increased activity across malls, hotels and mixed-use destinations, while Air Arabia stands to benefit directly from expanding regional connectivity and rising travel volumes.
“As we look ahead to 2026, tourism is likely to remain a key engine of growth for the UAE, creating investment opportunities both locally and globally,” Badami said.