The UAE has been making significant strides to bolster its tourism sector, recognizing its essential role in the country’s economic development.
Numerous activities have contributed to the growth of the UAE tourism industry, including the establishment of tourism authorities, festivals, participation in international events, and strategic trade in UAE tourism advertising.

Economic Contribution of Tourism
In 2016, the travel and tourism sector directly contributed AED 68.5 billion to the UAE’s GDP, representing 5.2% of the total GDP. Projections indicate that this figure will rise by 5.1% annually from 2017 to 2027, reaching AED 116.1 billion, or 5.4% of real GDP by 2027.
The tourism industry in the UAE also directly funded 317,500 jobs, accounting for 5.4% of total employment. This number is expected to increase to 410,000 jobs, growing at an annual rate of 2.4%, and will represent 5.9% of overall employment by 2027.
Establishing UAE Tourism Authorities
Though there is no independent Ministry of Tourism, the UAE’s Economic Ministry, along with the Chamber of Commerce and Industry of the Federation of the UAE, plays a pivotal role in developing the tourism sector. These bodies provide numerous facilities and services to encourage visitors to the country.
Various foreign hotel companies are incentivized to open new branches in the UAE. Each emirate aims to become a desirable destination for visitors, leading to an increase in tourism authorities, such as the Abu Dhabi Tourism Authority, Dubai Department of Tourism and Commerce Marketing, and Sharjah Commerce & Tourism Development Authority.
Organizing Festivals and Exhibitions
The UAE’s government efforts to make the country an attractive global destination have resulted in a rapidly growing tourism sector. The tourism authorities play a vital role in promoting the UAE’s international tourism profile by organizing festivals, exhibits, and conferences. These activities not only support tourism but also enhance the UAE’s global image.
Trade and Tourism
The UAE government’s strategy to boost tourism in Dubai requires the coordination of multiple activities to achieve positive outcomes. Many renowned companies and hotels have opened branches in prime locations, contributing to an increase in visitor numbers.
UAE Tourist Attractions
The UAE has enhanced its tourism sector by offering a variety of leisure and sports activities, becoming a crucial point of interest globally. Dubai, in particular, is known for its remarkable hospitality and diverse cultural offerings. It has become a major travel and business destination, drawing over 5 million visitors worldwide with its stunning architecture and luxurious hotels and beachside resorts.
Impact of Tourism on the Economy
The overall economic growth of a nation heavily depends on foreign exchange and internal revenue growth. Approximately 60% of a country’s revenue growth is driven by foreign exchange, with tourism being a significant part of foreign trade. Tourism revenue comes from both incoming and outgoing visitors.
Positive and Negative Aspects of Tourism Income
Tourism positively impacts the economy by boosting its global value, creating job opportunities, and enhancing the socio-cultural level of the local population. Local goods gain international market value, contributing to economic growth.
However, tourism also has negative aspects, such as the deterioration of ancient monuments and increased terrorism risks. Environmental degradation due to the higher use of land, water, and electricity is another concern. Additionally, tourism can lead to social issues such as increased prostitution and drug trade.
Attracting Tourists
Tourism aims to showcase a nation’s cultural dimensions to the world. The cultural appeal of a country attracts visitors, seeking to experience different lifestyles and traditions. This cultural exchange contributes to the flourishing tourism industry.
Competition for Tourism Revenue
Countries worldwide are keen to increase their share of tourism revenue, resulting in intense competition. Various tour packages are offered to attract more visitors, sometimes leading to compromised quality for better sales. Special privileges and attention to unique tourist spots are strategies used to enhance tourist attraction and revenue.
Conclusion
Tourism significantly impacts the UAE economy, contributing to GDP growth, job creation, and international recognition. If you are considering business opportunities in the UAE’s thriving tourism sector, Unicorn Global Solutions offers expert consultancy services tailored to your business needs. Contact us today for effective solutions and support in establishing your business in Dubai. Text us on WhatsApp or call us.