The UAE’s hotel and hospitality industry is predicted to grow by over 10% every year for the next four years, according to a new report by Alpen Capital. This phenomenal rate of growth will see the hotel/hospitality market reach revenues of $4.9 billion by the end of this year, nearly double what they were last year. Revenues are also forecast to hit $7.5 billion by 2016, outshining the rest of the GCC market. This growth is triple the amount the UAE’s overall economy is forecast to grow, which according to the IMF, is set to be around 2.8-3.6% over the next four years.
The Alpen report also predicts UAE tourism will grow by 5.3% by 2016. To keep up with demand, the number of hotel rooms in Dubai and Abu Dhabi are predicted to rise from nearly 97,000 to more than 125,000 by 2016. Dubai is already well on course to reaching its hotel revenue targets, with spending at the city’s hotels up by 22% to $2.64 billion in the first half of this year alone – excellent news for investors in the emirate’s hotel sector.