Dubai celebrates record-breaking tourism performance in 2023
Dubai has once again demonstrated why it ranks among the world’s most popular destinations, with the emirate welcoming a record 17.15 million international visitors in 2023.
The result marked a 19.4% improvement on 2022's 14.36 million arrivals and surpassed the previous benchmark of 16.73 million set in 2019, prior to the COVID-19 pandemic.
In terms of top visitor source markets, Western Europe and South Asia accounted for 19% and 18% of arrivals respectively, while CIS/Eastern Europe recorded a 13% share.
The North Asia and South-East Asia region accounted for 9% of arrivals, while the Americas contributed 7%, Africa 4% and Australasia 2%. Closer to home, the GCC and MENA regions delivered a combined 28% share.
Hoteliers post bumper results across all performance metrics
The surge in international arrivals paid dividends for the city’s hotel sector, with the industry posting strong gains across all key performance metrics.
Occupied room nights rose to a record 41.7 million in 2023, up from 37.4 million in 2022 and 32.1 million in 2019. While the average daily rate (ADR - AED 536) was consistent year on year (YoY), revenue per available room (RevPAR) rose to AED 415, up six percent year on year (YoY) and 33% compared with 2019.
The city’s average occupancy rate also reached its highest point in four years, topping 77.4% and ranking among the best worldwide. This performance was even more notable for the fact the city’s total guestroom supply has increased by 19% since 2019.
According to official DET data, Dubai's hotel inventory stood at 150,291 rooms across 821 properties as of December 2023, compared to 146,496 rooms in 804 hotels a year earlier.
Commenting on the tourism sector’s record-breaking achievements, HH Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Dubai Crown Prince and chairman of The Executive Council of Dubai, said: "Dubai's ability to constantly generate diverse and refreshingly novel travel and tourism experiences catering to a wide range of visitors has been a key factor behind this exceptional performance. With several indicators outperforming pre-pandemic levels, [2023’s] results mark Dubai out as a vibrant focal point of growth in the global tourism landscape."
Visitor results cap a remarkable year of achievements
The publication of the 2023 data marks the culmination of what was a benchmark year for Dubai as it strives to establish itself as the world’s most popular tourism destination.
Reflecting its rising reputation, Dubai was declared the world’s leading destination in TripAdvisor’s Travellers’ Choice Best of the Best Destinations Awards for 2024. It marks the third consecutive year Dubai has received the award – the first time any global destination has managed this feat.
Dubai also ranked second overall in Euromonitor International’s Top 100 City Destinations Index for 2023 and was named one of the top 10 cities in the Global Power City Index, published by the Mori Memorial Foundation’s Institute for Urban Strategies in Japan.
Dubai was also named the No.1 city in the world to relocate to, in a report by financial services provider Remitly, and was ranked the best city in the world for remote workers by property consultancy Savills in its 2023 Executive Nomad Index.
This growing international recognition aligns with the ambitious goals set forth by the Dubai Economic Agenda D33, which aims to establish Dubai among the top three global cities for business and leisure.
Tourism key to macroeconomic growth
The correlation between Dubai's tourism success and its economic prosperity is unmistakable, with the emirate's GDP expanding 3.3% in the first nine months of 2023, according to official data.
Dubai’s accommodation and food services sectors, in particular, expanded by a remarkable 11.1% YoY, reinforcing Dubai's status as a global tourism leader. This performance not only surpasses global tourism trends but also highlights Dubai’s leadership in spearheading the post-pandemic economic recovery.
"The significant rebound of Dubai's tourism sector, outstripping global recovery rates, stands as a testament to the vision and leadership of HH Sheikh Mohammed bin Rashid Al Maktoum… Under the oversight of this decisive leadership and a proven public-private partnership model, Dubai has sustained robust growth, fostering confidence within local and global industries, players and enablers,” commented Helal Saeed Almarri, Director General of Dubai Department of Economy and Tourism (DET).
“With the Dubai Economic Agenda D33's strategy serving as our economic compass for the next 10 years, we are committed to strengthening the tourism sector, enhancing our assets and infrastructure, and stimulating broader economic growth."