International tourists in the UAE are driving economic recovery, says the World Travel and Tourism Council

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City in UAE - Source WTTC
International tourists in the UAE are driving economic recovery, says the World Travel and Tourism Council

Travel and tourism activities in Dubai and Abu Dhabi surpass 2019 levels – overseas visitors spend more in Dubai than in 2019


WTTC;

The World Travel and Tourism Council (WTTC) today revealed positive signs of recovery in Dubai and Abu Dhabi’s travel and tourism sector as overseas travelers return, providing a much-needed boost to economies across the country.

The report, conducted in conjunction with Oxford Economics, analyzed key indicators such as travel and tourism’s contribution to GDP, employment and travel spending.

An analysis of the impact of the travel and tourism sector in both cities shows that direct GDP contribution, employment and visitor spending are all regressing.

The WTTC Cities Economic Impact Report found that in 2019, the travel and tourism sector contributed AED 51BN to Dubai and AED 12.5BN to Abu Dhabi’s economy.

But despite the pandemic’s devastating effects on many countries around the world, the UAE has shown remarkable resilience.

In the year By 2020, travel and tourism’s contribution to GDP has more than halved in both cities. It fell to AED 19.5BN in Dubai and only AED 6BN in Abu Dhabi.

But a study by the International Tourism Organization showed a strong recovery for both cities.

Dubai’s travel and tourism sector reached AED 46BN, just 10% from 2019 levels and Abu Dhabi’s travel and tourism sector is expected to grow to AED 11BN last year, 12% below 2019 levels.

Julia Simpson, President and CEO of WTTC, said: “City destinations in the UAE continue to grow in popularity with travelers from around the world.

Although these key cities have been hit hard by the pandemic, they have shown remarkable resilience and signs of growth. The UAE’s travel and tourism sector is on the road to recovery as tourist destinations continue to attract international travelers.

But it is vital that national and local governments continue to recognize the economic value of travel and tourism to local and national economies, jobs and businesses.

Jobs are increasing.

The report shows that employment in the travel and tourism sector in key cities analyzed is set to surpass pre-pandemic levels.

The report shows that there were just under 262,000 travel and tourism jobs in Dubai and around 43,000 in Abu Dhabi in 2019.

In the following year, employment fell to 211,000 in Dubai (-19%), but rose slightly to just under 44,000 in Abu Dhabi (+2%).

In the year In 2021, employment in Dubai grew by 10% to more than 231,000, but fell by 4% in Abu Dhabi to less than 42,000 jobs.

WTC predicts job numbers will grow in both cities.

Employment numbers in Dubai are expected to increase by 13% to reach around 262,000 jobs and Abu Dhabi employment numbers are set to reach over 43,000 in 2022, a modest increase of 0.4% in job numbers since before the outbreak.

In Dubai, WTTC forecasts an increase of AED 1.5BN from international visitor spending in 2022, compared to 2019, to AED 108BN (+1.4%).

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