UAE’s $49bn travel sector to employ 758,000 by end of year: WTTC

UAE travel sector eyes $64bn income within ten years, adds 7,000 jobs this year

UAE travel and tourism will meet pre-pandemic levels this year, according to the World Travel and Tourism Council’s 2023 Economic Impact Research.

The sector is set to contribute AED180.6bn ($49bn) to the UAE economy by the end of 2023, almost matching the 2019 high AED183.4bn ($50bn), only 1.5 per cent behind pre-pandemic levels.

This represents nearly 10 per cent of the total economy.

UAE tourism boom
WTTC is also forecasting that the sector will create nearly 7,000 jobs this year, surpassing the pre-pandemic peak of 745,100, to reach more than 758,000 employed in Travel and Tourism roles.

Last year, the Travel and Tourism sector’s GDP contribution grew more than 60 per cent to reach nearly AED167bn, representing 9 per cent of the country’s economy.

The sector also created more than 89,000 more jobs from the previous year to reach more than 751,000 jobs nationally, surpassing 2019 levels by an additional 6,000 jobs.

2022 saw the return of international travellers to the UAE, with India (13%), Oman (8%), Saudi Arabia (8%), and UK (7%) leading as source markets for international arrivals.

According to the data, in 2022, international visitors contributed AED117.6bn to the national economy, representing a year-on-year growth of 65.3 per cent, although 19 per cent behind 2019 levels.

In terms of domestic spend, 2022 saw a 35.7 per cent year-on-year jump, reaching AED46.9bn, 10.6 per cent above its pre-pandemic counterpart.

Julia Simpson, WTTC President and CEO, said: “The national Travel and Tourism sector is recovering at a rapid pace, proving the UAE continues to grow in popularity among international travellers. The UAE is home to one of the world’s busiest and successful airports, Dubai International, which acts as a gateway to the Middle East.

“The future for the sector looks positive. By the end of this year, the sector’s contribution will level that of 2019, and over the next decade, growth will outstrip the national GDP and create more than 114,000 new jobs, representing one in nine jobs.

“Our recent Cities EIR Report highlighted the appeal tourist destinations across the country, such as Dubai and Abu Dhabi, continue to hold for international travellers. These cities have shown an incredible resilience and strong leadership.”

The global tourism body is forecasting that the sector will grow its GDP contribution to AED235.5bn ($64bn) by 2033, representing 10.2 per cent of the UAE economy.

Over the next decade, Travel and Tourism is set to employ more than 872,000 people across the country, representing nearly 12 per cent of all jobs.

In 2022, the Middle East’s Travel and Tourism sector contributed more than AED1.2tn ($327bn) to the regional economy, 25.3 per cent below the 2019 peak.

By the end of this year, WTTC forecasts the regional sector’s GDP contribution will reach more than AED1.5tn ($413.2bn) and be within touching distance of the 2019 highpoint.

According to WTTC’s latest Economic Impact Report, the sector employed more than 6.8m people across the region last year, an increase of 865,000 from the previous year, but still 8.7 per cent behind the 2019 peak.

The sector will nearly recover the jobs lost during the pandemic by the end of this year, only 2 per cent behind pre-pandemic levels.

Over the next decade, the Travel and Tourism sector is projected to reach a contribution of nearly AED2.5tn ($681bn) and employ more than 9.8m people.