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UAE Travel & Tourism sector set to recover this year, says WTTC

UAE Travel & Tourism sector set to recover this year, says WTTC

The UAE travel and tourism industry is anticipated to reach the 2019 high this year, according to the 2023 Economic Impact Research (EIR) from the World Travel & Tourism Council (WTTC).

By the end of 2023, the industry is anticipated to have contributed AED 180.6 billion to the UAE GDP, nearly matching the peak AED 183.4 billion reached in 2019 and just 1.5% below pre-pandemic levels. This accounts for around 10% of the whole GDP.

Additionally, according to the WTTC, the industry will add close to 7,000 employment this year, exceeding the pre-pandemic record of 745,100, to reach more than 758,000 total positions.

A review of the previous year

The GDP contribution of the travel and tourism industry increased by more than 60% to approximately AED 167 billion last year, accounting for 9% of the national economy.

To achieve more than 751,000 employment nationwide, the industry added more than 89,000 positions over the previous year, outpacing 2019 levels by an extra 6,000 jobs.

In 2022, foreign visitors returned to the UAE, with India (13%), Oman (8%), Saudi Arabia (8%), and the UK (7%) leading the way as source markets for arrivals from outside.

The results show that foreign tourists contributed AED 117.6 billion to the national economy in 2022, a year-over-year gain of 65.3%, although 19% less than in 2019.

Domestic spending increased by 35.7% year over year in 2022 to AED 46.9 billion, 10.6% more than it was prior to the epidemic.

WTTC President & CEO Julia Simpson stated: “The national Travel & Tourism sector is rebounding at a quick rate, indicating the UAE continues to gain favour with foreign visitors. One of the busiest and most successful airports in the world, Dubai International, which serves as a gateway to the Middle East, is located in the United Arab Emirates.

“The sector’s future is promising. The sector’s contribution will match that of 2019 by the end of this year, and over the following ten years, growth will exceed the country’s GDP and generate more than 114,000 new employment, or one in every nine positions.

Our most recent Cities EIR Report demonstrated the attractiveness that popular tourist spots nationwide, like Dubai and Abu Dhabi, continue to have for visitors from outside. These cities have demonstrated extraordinary resiliency and capable leadership.

What will the upcoming ten years look like?

According to the international tourist organisation, the sector’s GDP contribution would increase to AED 235.5 billion by 2033, or 10.2% of the UAE economy.

More than 872,000 people will be employed nationwide in the travel and tourism sector during the following ten years, accounting for close to 12% of all occupations.

Arab World

The Middle East’s travel and tourism industry made more over AED 1.2 trillion in economic contributions in 2022, a decrease of 25.3% from the peak of 2019. WTTC predicts that by the end of this year, the regional sector’s GDP contribution would exceed AED 1.5 trillion (U.S.$ 413.2 billion) and be close to the 2019 highpoint.

The industry employed more than 6.8 million people in the area last year, up 865,000 from the year before but still 8.7% behind the 2019 record, according to WTTC’s most recent Economic Impact Report. By the end of this year, the industry will have recovered virtually all of the employment lost during the pandemic, falling only 2% short of pre-pandemic levels.

The travel and tourism industry is anticipated to generate close to AED 2.5 trillion in revenue during the following ten years and employ more than 9.8 million people.

Source: breakingtravelnews

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