The tourism market in Dubai is extremely flexible

Cavendish Maxwell, a company specializing in real estate consulting, confirmed that the main economic foundations of Dubai are solid, noting that the tourism market in the emirate has shown great flexibility during periods of instability, as it recovers quickly as conditions improve.

The company explained in a study, a copy of which was obtained by Emirates Today, that Dubai’s competitive advantages are not limited to the diversity of its global visitors and ease of access, but rather extend to continuous investment in physical infrastructure and interactive tourist attractions, expecting the sector to overcome market fluctuations in the near term while maintaining its growth path in the long term.

She stated that 4,600 new hotel rooms are scheduled to be delivered by the end of this year, most of them in the luxury and upscale hotel sectors, which witnessed strong growth in 2025.

In detail, Cavendish Maxwell, a company specializing in real estate consultancy, said that the tourism and hospitality sector in Dubai achieved strong performance in 2025, driven by the increasing demand from local and international visitors, strategic air connectivity, and the increasing number of global events, as the number of travelers reached 95.2 million passengers, while the number of international visitors rose to 19.6 million visitors, which strengthened the emirate’s position as a leading global tourism center, noting that this momentum It had a positive impact on the hotel sector, as occupancy rates and average daily prices witnessed a continuous increase throughout the year.

The company added in a study, a copy of which was obtained by Emirates Today: “Although geopolitical tensions in the region cast a shadow on travel patterns and visitor flows in the near term, the main economic foundations of Dubai are solid, as the emirate benefits from a diverse global visitor base extending from Europe, North America, Asia and others, as well as stable local demand, which supports relative stability in light of potential challenges, in addition to proven capabilities to recover from crises, continuous expansion of infrastructure, and the presence of a large number of Activities that support demand, as these structural factors prepare the sector to continue growth despite cyclical challenges.”

The company continued: “Historically, Dubai’s tourism market has shown extreme resilience during periods of instability, as it recovers quickly as conditions improve,” explaining that “the city’s competitive advantages are not limited to the diversity of its global visitors and ease of access, but rather extend to continued investment in physical infrastructure and interactive tourist attractions.”

She pointed out that with the continuation of these structural supports, the sector is expected to overcome market fluctuations in the near term while maintaining its growth path in the long term.

The company confirmed that the tourism sector in Dubai has witnessed steady growth over the past few years, benefiting from world-class infrastructure, a safe and diverse environment, and a program full of cultural events and festivals, pointing out that strategic government initiatives, continued investment in transportation and urban infrastructure, and a strong group of events are expected to support this sector so that the emirate maintains its position as one of the most flexible, competitive and diverse tourist destinations in the world.

She indicated that about 4,600 rooms are scheduled to be delivered by the end of this year, most of them in the luxury and upscale hotel sectors, which witnessed strong growth in 2025.

She said that in general, the basic tourism demand is expected to support the market throughout 2026, maintaining stable operating conditions, noting that the volume of hotel capacity in Dubai is expected to reach 163.3 thousand rooms by the end of this year with new openings.

Cavendish Maxwell explained that in terms of classification, future plans to expand the hotel sector indicate a clear shift towards high-end categories. While the current stock in 2025 remains relatively balanced between the luxury hotel categories, ultra-luxury hotels, and luxury hotels, future plans until 2028 significantly lean towards the luxury hotel categories (49.8%) and ultra-luxury hotels (28.6%), with only limited additions in the medium and economic hotel categories.

She added that this trend is expected to become more evident in 2027, as luxury hotels are expected to constitute about 68.4% of the future supply, pointing out that this increasing concentration of luxury projects reflects Dubai’s broader position as a distinguished global tourist destination, supported by strong demand from high-spending international visitors, and the emirate’s growing interest in hospitality concepts based on experiences and luxury.

She stated that the coming years are also expected to witness the opening of many prominent development projects.

She pointed out that hotel openings during 2025 were largely concentrated in the luxury hotel category, with notable additions such as the Ciel Dubai Marina Hotel, the Jumeirah Marsa Al Arab Hotel, and the Mandarin Oriental Downtown Hotel. She also pointed out the expansion of the supply of high-end hotels through new additions such as the Vida Dubai Mall Hotel and other projects to meet the needs of leisure and business travelers alike.