UAE tourism spending hit a record — and what it means for short-term rental demand

Tourism in the UAE is not just about hotels: a large share of visitors stay in apartments let out by private owners through short-term rental platforms, and tourist arrivals shape occupancy and rates in that segment more than any other single factor. The last two years of data show that flow has not just recovered from the pandemic — it has hit a historic high.

A record 2024, and an even stronger 2025

In 2024, foreign tourists spent a record $59.2 billion in the UAE — 30% above the pre-pandemic 2019 level — placing the country among the world's top seven for international tourist spending. Dubai alone welcomed 17 million visitors that year, up 19% on the year before. 2025 was stronger still: according to the World Travel & Tourism Council, international visitor spending hit record levels, and the sector's total contribution to the UAE economy topped $70 billion — about 13% of GDP, supporting more than 925,000 jobs. The top source markets stayed consistent — India, the UK, Russia, China and Saudi Arabia — with an official target of $121.5 billion a year in sector contribution by 2031.

How that turns into rental demand

Every tourist who books an apartment instead of a hotel room is direct income for a private owner who has registered the unit as a holiday home with regulator DTCM. In high-draw tourist districts — along the beachfront, near Dubai Marina, JBR and Downtown — short-term yields in peak season consistently beat long-term lease returns, though they require more hands-on management: cleaning, guest turnover, and working the booking platforms.

One structural point matters here: short-term rental demand in Dubai does not follow the narrow seasonality most tourist cities see. Business travel, family tourism and residents escaping colder climates for the winter keep demand running nearly year-round, with a peak in the traditional winter season.

What it means for an owner

When weighing long-term versus short-term letting, rising tourist spending is an argument for the latter — but only in locations with genuine tourist footfall, such as Dubai Marina and Downtown Dubai. A short-term let in a residential district with no beach or business infrastructure nearby usually loses to a long-term lease once operating costs are netted out.

The growing tourist flow also feeds directly into demand along Dubai's most visited beaches, such as JBR's, where a unit's price on the first row is increasingly driven not just by the view but by the beach's global standing.

For more on how that global standing shapes short-term rental value on the water, see JBR’s place among the world’s beaches.