Dubai Chamber analysis forecasts strong growth in UAE tourism sector
The UAE travel and tourism sector is expected to create 245,000 jobs directly by 2023, registering an annual growth rate of 4.1%, according to the latest research analysis released by Dubai Chamber of Commerce and Industry. The analysis also found that capital investment in the sector is expected to rise annually by an average of 4.5%, to reach AED143.4 billion in 2023. This would increase travel and tourism’s share of the UAE’s total private investments to about 23.2%, up from 22.8% in 2013. The UAE is ranked the 28th among 139 countries and 1st in the Middle East in the World Economic Forum’s “Travel & Tourism Competitiveness Report 2013″. Dubai plays a lead role, holding a 66% share of the UAE’s tourism economy, with Abu Dhabi having 16%, and Sharjah 10%. The performance of Dubai tourism related sectors such as ‘restaurants and hotels’ and ‘transport and communication’ is depicted in Figure 1. In 2012, the restaurants and hotels sector was the highest growing sector in Dubai’s economy, registering 16.9% annual growth rate. The sector also witnessed an increasing percentage share reaching about 4.5% in 2012, compared to 3.4% in 2008. In 2012, Dubai transport and communication sector had 14% share in Dubai GDP rising from 12% in 2008. The sector also witnessed relatively robust annual GDP growth rate of about 7.3% up from -0.9% in 2008. However, part of the transport and telecommunication sector value added can be related to the tourism sector. Meanwhile, the total number of hotels in Dubai reached 406 hotels in June 2013, registering an annual growth rate of about 4% compared to the same month in 2012, based on data from Dubai Statistics Centre. Based on the World Travel & Tourism Council (WTTC), in 2012 the estimated total value added generated by the UAE travel and tourism sector either directly or indirectly, reached about AED 193.6 billion compared to AED 176 billion in 2011, approximately accounting for 14.3% share of GDP. The UAE travel and tourism sector value added percentage share is expected to reach about 16.4% of total GDP and to register an average annual growth rate of 5%, to reach AED 325.4 billion by 2023. Based on the same study, the UAE travel and tourism sector GDP in 2011 was larger than that of the education, automotive manufacturing, and chemicals manufacturing sectors. In terms of its direct GDP, travel and tourism is slightly smaller than the size of the financial services sector in the UAE. In 2012, the estimated total contribution of UAE travel and tourism to employment was 383,500 jobs, representing 11.3% of total employment, as compared to 363,100 jobs in 2011. This is forecast to increase by 2.6% in 2013 to 393,500 jobs. Over the next 10 years, the sector is expected to create 245,000 jobs directly by 2023 registering average annual growth rate of about 4.1%. This includes employment by hotels, travel agents, airlines and other passenger transportation services; it also includes the activities of the restaurant and leisure industries directly supported by tourists.
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