UAE Residents Spend 186 Billion Dirhams on Tourism Annually

UAE Residents Fuel $50 Billion Travel Boom as Tourism Sector Hits Record Highs

UAE residents are driving an unprecedented travel spending surge, allocating approximately 186 billion dirhams ($50.6 billion) annually on domestic and international tourism—a figure that underscores the Emirates' emergence as both a global travel hub and a nation of affluent, mobile consumers. This spending pattern reflects not just individual prosperity but positions the UAE as a critical player in reshaping Middle Eastern tourism dynamics.

International Travel Dominates Spending Patterns

The spending breakdown reveals telling insights about UAE consumer behavior. Residents are projected to spend 125.5 billion dirhams on international travel in 2025, compared to 60 billion dirhams on domestic tourism—a 2:1 ratio that highlights the country's role as a gateway for global exploration rather than just a destination.

International travel spending has shown remarkable consistency, growing at an average rate of 4.7% annually since 2021. The trajectory from 104.6 billion dirhams in 2021 to a projected 142.1 billion dirhams by 2035 demonstrates sustained purchasing power despite global economic uncertainties.

Domestic Tourism Shows Explosive Growth

While international spending dominates in absolute terms, domestic tourism tells a more dynamic story. Local travel spending has averaged 12.5% growth since 2021, with a particularly striking 35% surge in 2022 as pandemic restrictions lifted. This rebound—from 38.5 billion dirhams in 2021 to 52 billion dirhams in 2022—suggests pent-up demand and growing appreciation for local attractions.

Economic Impact Reaches Strategic Proportions

The tourism sector's contribution to UAE's national economy is projected to reach 267.5 billion dirhams in 2025, representing 13% of the country's GDP. More significantly, the UAE accounts for 20.5% of all travel and tourism GDP across the Middle East—a disproportionate share that reflects the country's outsized influence in regional tourism.

This economic weight provides the UAE with substantial leverage in tourism policy and infrastructure development across the region, potentially influencing everything from visa policies to airline route planning.

International Visitor Surge Breaks Records

The UAE is expected to welcome 29 million international overnight visitors in 2025, representing 11.5% growth from 26 million in 2024. These visitors are projected to spend a record 228.5 billion dirhams—37% higher than the previous 2019 peak and 5% above 2024 levels.

This spending recovery and growth beyond pre-pandemic levels suggests the UAE has not merely bounced back but fundamentally strengthened its tourism proposition. The country appears to have captured market share from competitors who may still be recovering from pandemic impacts.

Strategic Implications for Regional Competition

The UAE's tourism performance creates both opportunities and challenges for regional competitors. Saudi Arabia's Vision 2030 tourism ambitions and Qatar's post-World Cup tourism strategy must now compete with a UAE market that has demonstrated remarkable resilience and growth.

For investors, these figures suggest the UAE tourism infrastructure—from airports to hotels to entertainment venues—represents a sector with proven demand elasticity and growth potential. The consistent spending growth across both domestic and international segments indicates diversified revenue streams that could weather future economic cycles.

The data reveals a tourism economy that has moved beyond recovery into expansion mode, positioning the UAE as the Middle East's undisputed tourism powerhouse with spending patterns that reflect both local prosperity and international appeal.