80% said they were likely to book a stay at a hotel in the city
88% cite modern technology as an important factor in their hotel experience
Dubai is diversifying its tourism offering and expanding its range of experiences for visitors with culture, adventure, business travel, and food and wellness holidays, piloting the hospitality industry in 2024. This shift, coupled with infrastructure and technology investments, is positively influencing guest experiences, with KPMG’s latest Hospitality Report revealing high satisfaction levels among visitors.
A vast majority (94%) were satisfied with their hotel stay in Dubai over the past year compared to 92% in the previous year, and 80% were likely to book a stay at a hotel in the city, reflecting strong demand in the sector. The occupancy rate increased from 77.1% to 77.7%, and the Average Daily Rate (ADR) increased from AED 654.4 to AED 666.
Government initiatives, including the Dubai Economic Agenda D33, are positioning Dubai as a top three global tourism destination by 2033. A key development in inbound tourism is the extended tourist visa for Indian nationals, which has influenced travel decisions, with 70% of respondents saying they are more likely to visit the UAE due to this policy change.
While luxury hotels have always been a significant part of the UAE’s hospitality landscape, KPMG’s research points to a growing demand for unique experiences and personalized services that allow guests to immerse themselves in the local culture. Hotels are offering curated experiences, such as desert safaris, cultural tours, and traditional dining experiences featuring local cuisine and showcasing Emirati hospitality to meet this demand.
The report also underscores the changing traveler profile to the city, as visitors seek eco-conscious, boutique experiences with a local flavor. Dubai hotels and resorts are adding eco-friendly services and wellness-focused amenities to their offerings, with restaurants incorporating local and organic produce into their menus, supporting sustainable agriculture, and reducing their carbon footprint.
Sidharth Mehta Partner, Head of Real Estate and Construction at KPMG Lower Gulf, said: “Dubai is continuously re-inventing itself for the global traveler. The UAE’s Leadership has significantly invested in tourism infrastructure, including developing world-class airports, hotels, resorts, theme parks, and entertainment complexes. This has laid a solid foundation for Dubai’s hospitality sector. We are witnessing a shift toward more responsible, experience-driven travel, where guests seek deeper cultural connections and sustainability-driven stays.”
KPMG’s report also reinforces how technological advancements have increasingly become vital for the hospitality industry, especially as 88% of survey respondents cite modern technology as an important factor in their hotel experience. Artificial Intelligence, augmented reality, and data analytics are allowing hotels to personalize services, streamline operations, and anticipate guest needs. Dubai hotels are increasingly adopting digital solutions for bookings and check-ins, concierge services, and loyalty programs to create seamless and intuitive experiences.
Looking ahead, Dubai’s hospitality industry is witnessing a surge, driven by favorable economic conditions, government initiatives, and a robust real estate sector in both luxury and affordable housing. However, the sector will need to prioritize innovation, sustainability, and unique experiences to maintain its global competitiveness.
