UAE Travel and Tourism Market Size to Surpass USD 163.4 Billion by 2033 | With a 11.0% CAGR

UAE Travel and Tourism Market Overview

Market Size in 2024: USD 61.3 Billion

Market Size in 2033: USD 163.4 Billion

Market Growth Rate 2025-2033: 11.0%

According to IMARC Group's latest research publication, "UAE Travel and Tourism Market: Industry Trends, Share, Size, Growth, Opportunity and Forecast 2025-2033", The UAE travel and tourism market size reached USD 61.3 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 163.4 Billion by 2033, exhibiting a growth rate of 11.0% during 2025-2033.

How AI is Reshaping the Future of UAE Travel and Tourism Market

● Revolutionizing Trip Planning and Booking: A striking 68% of UAE travelers now use AI when booking holidays, representing a 57% increase from last year, with Marriott Bonvoy research revealing that 67% of consumers in the UAE have used AI to help plan or research vacations, far exceeding the 48% global average.

● Transforming Guest Services with Virtual Assistants: Hotels across Dubai and Abu Dhabi have deployed AI systems like Majd Al for routine guest inquiries, while 39% of hospitality businesses already use AI chatbots or virtual assistants to provide 24/7 support, make recommendations, and handle administrative tasks, allowing human staff to focus on complex interactions.

● Enabling Flying Taxis and Smart Mobility: Dubai is building four vertiports at Dubai International Airport, Downtown Dubai, Dubai Marina, and Palm Jumeirah for Joby Aviation's all-electric air taxis launching in 2026, capable of carrying four passengers at 200 mph and cutting popular routes from one hour to 10 minutes.

● Powering Fraud Prevention and Payment Security: AI-driven fraud detection tools like Adyen's Protect platform have slashed false-positive rates by 86%, responding to the fact that 42% of UAE hospitality businesses saw significant rises in payment fraud attempts and 17% of travelers experienced booking fraud in the past 12 months.

● Creating Smart Tourism Infrastructure: Abu Dhabi's plan to become the world's first fully AI-native government by 2027, coupled with Zayed International Airport's biometric Smart Travel initiative and Dubai's AI Park unveiled at Gitex 2025, is positioning the UAE as the global leader in intelligent tourism experiences.

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UAE Travel and Tourism Market Trends & Drivers:

The UAE travel and tourism market is thriving thanks to several powerful factors shaping its growth. First, the government's strong backing through initiatives like the UAE Tourism Strategy 2031 and the National Tourism Charter creates a solid foundation by fostering sustainable tourism, enhancing infrastructure, and boosting global competitiveness. These policies help unify efforts across the Emirates, drive high-value job creation, and promote innovative tourism experiences that attract a wide range of visitors, thereby contributing nearly 13% to the national GDP and supporting over 925,000 jobs.

Second, the UAE's status as a global travel hub is cemented by its world-class infrastructure and strategic location, which continually attract a surge of international visitors. Recent data shows Dubai welcomed nearly 10 million international overnight visitors in just the first half of the year, marking steady growth supported by its airport connectivity, luxury hotels, and entertainment offerings. Additionally, international visitor spending is projected to surpass AED 228 billion, reflecting strong confidence in the destination's appeal and hospitality industry.

Third, emerging travel trends are shaping tourist behavior in the UAE, with a rising focus on personalized, wellness, and eco-conscious tourism experiences. More travelers now seek immersive cultural journeys, restful "sleep tourism," and sustainable travel options, with 81% valuing pampering and 84% prioritizing eco-friendly choices. The market also sees a growing embrace of digital booking platforms paired with personalized services. These shifts are driving diverse tourism products, from cultural hubs in Abu Dhabi to experiential tourism in Dubai, creating fresh opportunities for businesses and enhancing visitor satisfaction.

UAE Travel and Tourism Industry Segmentation:

The report has segmented the market into the following categories:

Type Insights:

● Domestic
● Inbound
● Outbound

Service Offering Insights:

● Ticket Reservation
● Hotel Booking
● Holiday/Tour Packages
● Others

Purpose of Visit Insights:

● Business
● Leisure and Recreation
● Education
● Medical
● Social Activity
● Others

Booking Type Insights:

● Travel Companies
● Travel Agencies
● Online
● Others

Regional Insights:

● Dubai
● Abu Dhabi
● Sharjah
● Others

Competitive Landscape:

The competitive landscape of the industry has also been examined along with the profiles of the key players.

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Recent News and Developments in UAE Travel and Tourism Market

● September 2025: Abu Dhabi is set to host the Abu Dhabi Smart City Summit in September 2025, reinforcing its commitment to become the world's first fully AI-native government by 2027, with smart city infrastructure unlocking immersive AR and Extended Reality experiences for tourists visiting cultural sites and attractions.

● February 2025: Dubai Road and Transport Authority signed a deal with Joby Aviation to launch all-electric air taxis by 2026, with four vertiports under construction at Dubai International Airport, Downtown Dubai, Dubai Marina, and Palm Jumeirah, capable of cutting travel times from one hour to 10 minutes at speeds of 200 mph.

● 2025 Initiative: Dubai's Department of Economy and Tourism partnered with Amadeus to advance biometric technology and airport experience optimization, while Zayed International Airport's Smart Travel initiative aims to integrate biometric authentication at all security checkpoints by 2025 for touchless passenger journeys.

● Gitex 2025: Du unveiled the AI Park at Gitex Technology Week 2025, a dedicated space designed to integrate artificial intelligence into Dubai's tourism industry through personalized recommendations, AI-powered concierge services, and smart infrastructure that attracts international tech companies and start-ups.

Note: If you require specific details, data, or insights that are not currently included in the scope of this report, we are happy to accommodate your request. As part of our customization service, we will gather and provide the additional information you need, tailored to your specific requirements. Please let us know your exact needs, and we will ensure the report is updated accordingly to meet your expectations.

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