Dubai’s diversified tourism push drives higher hotel satisfaction, occupancy in 2024 – KPMG

UAE – Dubai’s strategy to diversify its tourism offering—spanning culture, adventure, business, wellness, and food—has helped pilot hospitality growth in 2024. KPMG’s latest Hospitality Report shows 94% of visitors were satisfied with their hotel stay (up from 92%), with 80% likely to return.

Hotel occupancy rose to 77.7% from 77.1%, and the Average Daily Rate (ADR) climbed from AED 654.4 to AED 666 (US$ 178.2).

Dubai continues to strengthen its position as a leading global tourism destination, driven by strategic government initiatives like the Dubai Economic Agenda D33, which aims to place the city among the world’s top three tourism hubs by 2033.

One of the notable developments shaping inbound tourism is the introduction of extended tourist visas for Indian nationals.

This move has had a clear impact, with 70% of surveyed Indian travelers indicating they are more likely to visit the UAE due to the policy change.

While luxury accommodations remain central to the UAE’s hospitality appeal, there is a clear shift toward experience-driven stays.

According to the new KPMG report, travelers are increasingly seeking unique, personalized experiences that reflect the region’s culture and traditions. In response, hotels are curating offerings that include desert safaris, guided cultural tours, and dining experiences showcasing Emirati cuisine and hospitality.

Dubai’s traveler demographic is also evolving, with visitors showing greater interest in eco-conscious and boutique-style stays.

To meet this demand, many hotels and resorts are integrating sustainable practices—ranging from wellness-focused amenities and energy-efficient services to the use of local and organic produce in restaurants.

These efforts support sustainable agriculture while contributing to a reduced carbon footprint.

Technology is playing an increasingly vital role in this transformation. According to KPMG’s research, 88% of survey participants consider modern technology essential to their hotel experience.

Digital innovations, such as AI, augmented reality, and data-driven personalization, are helping hotels enhance guest experiences, optimize operations, and anticipate needs.

From digital concierge platforms and seamless booking systems to personalized loyalty programs, Dubai’s hospitality sector is rapidly adopting tech-forward solutions.

Looking ahead, the city’s hospitality industry is experiencing robust growth, supported by a strong economy, active real estate development across luxury and affordable segments, and forward-thinking public policies.

To remain competitive on the global stage, however, the sector must continue embracing innovation, sustainability, and culturally rich experiences that reflect the city’s dynamic identity.

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