Tourism Industry Effects on the UAE Economy

by Zaara 08, Jul 2022

tourism license in UAE

The UAE is making significant efforts to improve its tourism sector to play an essential role in developing its economy. Many activities are involved in the UAE tourism industry's growth, such as establishing tourism authorities, festivals, participation in international events, and trade-in UAE tourism ads.

In 2016, AED 68.5 billion was the direct contribution of the travel and tourism sector to the UAE's GDP, equal to 5.2 % of the total GDP. It is expected to rise by 5.1 % per annum from 2017 to 2027 to AED 116.1 billion, which will equal 5.4 % of real GDP in 2027.

In the UAE, 317,500 jobs are directly funded by the travel and tourism industry, representing 5.4 % of total work. It is expected to rise to 410,000 jobs by 2.4 % annually, representing 5.9 % of overall employment in 2027.

According to the World Travel and Tourism Council, the travel and tourism industry's contribution to the UAE GDP ranks it among the top 11 countries in the Middle East with 22.6 % and 13.5 %. The UAE is continuing to establish further tourism ventures due to this achievement.

Establishing UAE Tourism Authorities

Although there is no independent Ministry of Tourism in the UAE, the UAE Economic ministry, Chamber of Commerce, and Industry of the Federation of the UAE are involved in developing the tourism industry in the UAE by providing many facilities and services that encourage visitors to visit the country. 

Many foreign hotel companies are encouraged to open new branches for their UAE Emirates businesses. In addition, as several of the Seven Emirates believe in a vision to make their emirates the most desirable cities for visitors, the number of tourism authorities in the UAE is increasing. 

Abu Dhabi Tourism Authority, Dubai Department of Tourism and Commerce Marketing, and Sharjah Commerce & Tourism Development Authority are examples of different cities' tourism authorities.

Organizing Festivals and Exhibitions

As a result of government efforts to make the country one of the most attractive countries globally, the UAE tourism sector is growing and expanding rapidly. In preparing and organizing festivals, exhibits, and conferences, the country's tourism authorities play a vital role in promoting the UAE's international tourism role. 

They do not engage in activities linked to tourism and other events that could be positive for the UAE. Therefore, UAE's tourism emirate is seen from a different perspective.

Trade and Tourism

The government’s plan to grow the tourism business in Dubai, UAE requires the coordination of several activities leading to possible positive outcomes. Many well-known companies and hotels are opening their branches in the most desirable part of the country. 

Also, the number of visitors has recently increased. 

UAE Tourist Spots Becoming Attractive

The UAE has improved its tourism sector by offering a wide variety of leisure and sports activities. It is a crucial point of concern in the UAE. There is no denying that the UAE is one of the world's most beautiful and most visited countries. 

Dubai has been renowned for its incredible ethnicity and hospitality. Concerning the tourist invasion, it was one of the most popular locations. It has become a travel and business destination worldwide. 

According to records, Dubai has drawn over 5 million visitors worldwide to its incredible architecture. A wide range of hotels and beachside resorts has made it comfortable for tourists to stay in Dubai.

Impact of Tourism on the Economy of a Country

Two things depend on a nation's overall economic growth, i.e., foreign exchange and internal revenue growth. Of these two, about 60 % of the country's revenue growth is accounted for by the foreign exchange. 

Tourism is a part of foreign trade, where the country's revenues are received from incoming and outgoing visitors. 

Positive and Negative Aspects of Tourism Income

The positive point of tourism is that it allows the country's economy to grow and raises its value worldwide. It also enhances work opportunities and boosts the socio-cultural level of the local population. 

Local goods gain high weight and are sold on the international market.

The negative side of the issue, i.e., the detrimental points of tourism, entails its ancient and antique monuments' spoiling. It also tends to raise terrorism. 

It can also contribute to leaking information from classified documents, making it easy for individual countries to ground them. Also, there is a loss of the environmental aspects of growing tourism, which results in increased use of land, water, and electricity, eventually contributing to land degradation and the environment. 

Tourists intentionally or unknowingly ruin any other place's cleanliness. The ground has an imbalance that causes animals to become endangered. Tourism may also lead to a rise in prostitution, in the worst cases. 

Again, through tourism, the drug industry is booming. Most young people have been found to obtain drugs from outside the masses coming to their country.

What Attracts a Tourist?

Tourism aims to promote all nation's cultural dimensions to the whole world as far as cultural concerns are concerned. Another country's cultural outlook influences many visitors from one country to another. 

Everyone wants a shift, needs a place to go and chill out, so they choose to fly to another country and experience the essence of their culture and way of life. So, this is a path by which the tourism industry will also flourish.

A Race Between Countries over Tourist Income

Almost every country wants to increase its share of tourism revenue by seeing the overwhelming number of tourists coming to a nation, and it is very evident. Therefore, people use various tour packages to draw more visitors to increase their profits. 

They can cut down their food to give them their food share, not in a positive way, but only to get better sales. Special privileges are granted to visitors, as the government pays much attention to some unique tourist spots. It gives them a better show off on their masses of money.

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FAQs

What was the contribution of the travel and tourism sector to UAE’s GDP in 2016?

In 2016, AED 68.5 billion was the direct contribution of the travel and tourism sector to the UAE's GDP, equal to 5.2 % of the total GDP.

What is the estimated rise of the GDP of the UAE by 2027?

It is expected to rise by 5.1 % per annum from 2017 to 2027 to AED 116.1 billion, which will equal 5.4 % of real GDP in 2027.

Which are the government authorities for tourism in the Emirates?

Abu Dhabi Tourism Authority, Dubai Department of Tourism and Commerce Marketing, and Sharjah Commerce & Tourism Development Authority are examples of different cities' tourism authorities in the country.

What are the positive effects of tourism?

The positive point of tourism is that it allows the country's economy to grow and raises its value worldwide. It also enhances work opportunities and boosts the socio-cultural level of the local population. 

Local goods gain high weight and are sold on the international market.

How is the Emirates among the most attractive tourist spots?

The UAE has improved its tourism sector by offering a wide variety of leisure and sports activities. Dubai has been renowned for its incredible ethnicity and hospitality. 

According to records, Dubai has drawn over 5 million visitors worldwide to its incredible architecture. A wide range of hotels and beachside resorts has made it comfortable for tourists to stay in Dubai.

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