The United Arab Emirates (UAE) is known for its towering skyscrapers, luxurious hotels, and pristine beaches. The country’s tourism industry has been a major contributor to its economy, but just how much does it account for? Let’s take a closer look.
What is the UAE’s GDP?
Before we dive into the percentage of the UAE’s economy that is made up of tourism, it’s important to understand the country’s overall Gross Domestic Product (GDP). According to the International Monetary Fund (IMF), the UAE’s GDP was $421.14 billion in 2020.
What Percentage of the UAE Economy Is Tourism?
Tourism is one of the UAE’s most significant economic sectors. According to data from the World Travel & Tourism Council, tourism contributed 11.3% of the UAE’s GDP in 2019.
Interestingly, this percentage dropped significantly in 2020 due to the impact of COVID-19 on travel and tourism. In fact, according to a report by Oxford Business Group, tourism only accounted for 5.5% of the UAE’s GDP in 2020.
Breaking Down Tourism Revenue
While tourism as a whole may have contributed around 11% of the UAE’s GDP pre-pandemic, it is important to note that not all aspects of tourism contribute equally.
- Travel and Accommodation: This category includes airlines, hotels, and other forms of accommodation. In 2019, it accounted for approximately 37% of total tourism revenue in the UAE.
- F&B and Leisure: This category includes food and beverage services as well as recreational activities like theme parks and museums.
In 2019, it accounted for approximately 38% of total tourism revenue in the UAE.
- Retail: This category includes shopping centers and souks. In 2019, it accounted for approximately 25% of total tourism revenue in the UAE.
The Future of Tourism in the UAE
As the world begins to recover from the impact of COVID-19, the UAE is working to revitalize its tourism industry. In fact, according to a report by the Dubai Chamber of Commerce and Industry, the country is expected to see a gradual recovery in tourism over the next few years.
The UAE government has also taken steps to support the industry, including launching new visa policies and investing in tourism infrastructure.
Conclusion
While tourism only accounted for around 11% of the UAE’s GDP prior to COVID-19, it remains an important economic sector for the country. As the world begins to reopen and travel resumes, we can expect to see a gradual recovery in tourism revenue and a renewed focus on this key industry.