When we think of the UAE’s wealth, oil immediately comes to mind. But today, the Emirates is much more than that. Tourism has become a powerful driver of the economy, unlocking countless opportunities for entrepreneurs.
Earnings in this sector can rival, and even surpass, those from oil. What is the best line of business to pursue in the UAE tourism industry and what makes it particularly lucrative?
Overview of the UAE tourism market
The UAE has become one of the global leaders in the tourism industry, ranking sixth in tourism revenue. According to the World Tourism Barometer, the country earned $51.9 billion from tourism, and the World Travel and Tourism Council (WTTC) expects that 2024 will close with a revenue of $64 billion. A decade from now, tourism will become even more critical, with nearly one in nine UAE residents expected to work in this sector.
5 reasons that make the UAE an extremely promising place to do business in the tourism industry
1. High hotel occupancy rates and revenue growth
Hotels in the UAE are experiencing a boom: their revenues in the first half of 2024 increased by 7%, exceeding AED 24.6 billion. The average occupancy rate reached 79.5%—one of the highest in the world. Tourists and business visitors attending conferences and exhibitions like COP28 ensure a steady flow of guests year-round.
Investors can benefit from this growth, especially in upscale and high-end segments, which are becoming increasingly popular among affluent travelers and expats. This growth also creates opportunities for companies specializing in cleaning services, catering, and hotel technology.
2. Surge in international visitor arrivals
From January to August 2024, Dubai welcomed 11.93 million tourists, a 7% increase compared to the previous year. Besides Europe and North America, many travelers came from emerging markets: India, China, and Russia.
Tour operators can capitalize on this trend by offering unique tours tailored to different audiences — desert safaris, cultural excursions in Sharjah, or diving in Fujairah — to stand out from competitors. Also, premium services like yacht rentals or culinary tours featuring Emirati cuisine can all yield high profits.
3. Government Initiatives and Strategic Investments
The UAE’s tourism strategy for 2031 aims to attract 40 million hotel guests annually and increase the sector’s contribution to GDP to AED 450 billion. To achieve this, authorities are developing new tourist zones, simplifying visa rules, and launching initiatives like “Visit UAE” to draw more international visitors.
This creates new business opportunities. Entrepreneurs can participate in major government-backed projects, such as the development of a waterfront in Abu Dhabi or cultural hubs in Dubai. The growth of wellness, sports, and eco-tourism also provides room for innovative ideas and services that are in demand globally.
4. Development of mega tourism projects
The UAE is well-known for its mega-projects. One of them is the $35 billion expansion of Al Maktoum International Airport, designed to handle up to 260 million passengers a year. Another key project is Expo City in Dubai, which is turning into a hub for culture and technology. These developments open up new opportunities for businesses. For example, retailers and food companies can connect with tourists visiting the new landmarks.
5. Rising demand for wellness and medical tourism
Dubai is already among the top 20 cities for medical tourism in 2024. People come here for affordable, high-quality treatments, ranging from cosmetic surgery to fertility treatments and orthopedics. Places like Zoya Health & Wellbeing Resort in Ajman or the Clinique La Prairie branch in Dubai offer exclusive programs for wealthy travelers, from detox therapies to comprehensive treatment plans.
How can you benefit from this? Travel agencies can create tailored medical tours, helping clients with paperwork, treatment bookings, and accommodation. Startups can develop user-friendly mobile apps to guide tourists through medical services, help them plan treatments, and provide post-procedure support.
Tourism business ideas in the UAE
Hotel business
As of mid-2024, the UAE boasts 213,741 hotel rooms — 3% more than the previous year. Growth is driven not only by new constructions but also by renovations of older hotels to stay competitive. Regions like Ras Al Khaimah and Sharjah are also attracting investments, as developers expand beyond the saturated markets of Dubai and Abu Dhabi.
Restaurant business
Dubai is seeing yearly increases not just in tourism numbers but also in its expat population. The UAE’s population continues to grow as more people from abroad make it their home, living and working in the country for the majority of the year. This is driving up demand for all kinds of establishments.
Aesthetic medicine, cosmetology, and beauty services
Services related to health, beauty, and self-care are extremely popular in Dubai and Abu-Dhabi. There is high demand for professional services from cosmetic doctors, aestheticians, makeup artists, hair stylists, and nail technicians. The city’s focus on luxury and wellness makes this sector especially promising, and many visitors come just for high-end treatments.
Real estate rental business
The rental housing market in the UAE is one of the most dynamic and fastest-growing sectors of the economy. Major international events, such as Expo 2020, have significantly boosted the demand for short-term rentals. The hotel sector cannot always meet this demand, giving rise to a robust market for apartment rentals. With diverse infrastructure ensuring comfort and safety, as well as a wide range of housing options — from budget-friendly to luxury apartments—the UAE remains highly attractive for real estate investors.
Tour agency business
By mid-2024, Dubai welcomed 9.31 million international overnight visitors, marking a 9% increase over the 8.55 million arrivals during the same period in 2023. This growing interest in the country provides an excellent opportunity for tour agencies. You can carve out a niche by offering tailored cultural experiences, adventure tours, eco-tourism packages, or luxury travel services.
Wrapping up
The UAE offers incredible opportunities for the tourism industry, but success here doesn’t come automatically. It takes the right approach: understanding the market inside and out, developing a solid strategy, and staying ready to adapt quickly to outperform fierce competition.
But the rewards are worth it. The UAE tourism market is one of the most profitable in the world. The key is to not be afraid to try, to embrace risk and to evolve – your opportunities are limited only by your ambition and your willingness to act.
