UAE Captures 30% of Gulf Travelers' Vacation Spending

UAE residents account for 30% of all Gulf travel spending abroad this year, with Emiratis expected to spend 125.5 billion dirhams on international travel. This puts the UAE well ahead of its regional neighbors in outbound tourism spending, reflecting the country's strong purchasing power and travel appetite.

The World Travel and Tourism Council estimates that Gulf residents will spend a total of 418.7 billion dirhams on international travel in 2025. UAE residents alone contributed 119.7 billion dirhams last year, maintaining their 30.2% share of regional spending. By 2035, this figure is projected to reach 142.1 billion dirhams annually.

The growth has been steady since 2021. UAE outbound travel spending jumped 12% compared to 2019 levels, when residents spent 107.1 billion dirhams. The recovery pattern shows consistent year-over-year increases: from 104.6 billion dirhams in 2021 to 111.5 billion in 2022, then 117 billion in 2023, and 119.7 billion in 2024.

But UAE residents aren't just big spenders abroad. They're also investing heavily in domestic tourism. Local residents are expected to spend 60 billion dirhams on domestic travel this year, with projections reaching 73.3 billion dirhams by 2035. Combined with international travel, UAE residents spend roughly 186 billion dirhams annually on tourism and travel.

Domestic tourism spending has seen dramatic growth since the pandemic. In 2021, residents spent 38.5 billion dirhams locally, which surged 35% to 52 billion dirhams in 2022. The growth continued with 56.2 billion dirhams in 2023 and 57.6 billion dirhams in 2024.

The tourism sector's contribution to the UAE's national economy is substantial and growing. This year, the sector is expected to contribute 267.5 billion dirhams to the economy, representing 13% of the country's GDP. That's a 4% increase from last year.

The UAE is also becoming a bigger draw for international visitors. The country expects to welcome 29 million international tourists who stay overnight in 2025, up from 26 million last year. That's an 11.5% increase, showing the UAE's appeal as both a source and destination for tourism spending.

These numbers matter for several reasons. The UAE's outsized share of Gulf travel spending shows the country's economic strength and its residents' mobility. For the travel industry, UAE travelers represent a lucrative market segment. And for the UAE government, the strong domestic tourism numbers suggest that efforts to promote local travel are paying off, keeping some tourism dollars within the country's borders.