For every hotel role created, 2-3 indirect employment emerge in retail, logistics, entertainment, and tourism services, said industry expert
By Staff Reporter
More than 11,300 new hotel rooms are to open across Dubai by 2027, with almost 4,620 coming to the market this year, according to a new study by Cavendish Maxwell.
These new rooms are estimated to create thousands of new direct and indirect jobs across Dubai’s hospitality, retail, transport, F&B and other sectors over the next two years.
“The addition of 11,300 hotel rooms will require approximately 15,000 direct hospitality professionals, but the true economic power lies in the ripple effect. For every hotel role created, 2-3 indirect jobs emerge in retail, logistics, entertainment, and tourism services. This expansion isn’t just about beds — it’s about empowering Dubai’s workforce, amplifying revenue streams, and cementing the city’s status as a global hub where leadership decisions translate into sustainable opportunities,” said Iftikhar Hamdani, area general manager of Bahi Ajman Palace and Coral Beach Resort Sharjah.
He elaborated that hotels typically require 1.2–1.5 employees per room to operate efficiently, depending on service level – luxury versus mid-scale – and amenities (e.g., spa, restaurants). “For Dubai’s high-service hospitality market, a conservative average of 1.3 employees per room is realistic,” he told Khaleej Times.
He noted that hospitality growth triggers a 2.5–3x multiplier in ancillary sectors such as retail, transportation, construction, and tourism services. “This could generate 36,000-50,000 indirect jobs such as suppliers, maintenance, tour operators etc.”
According to Cavendish Maxwell, total new supply for 2025 is projected at 4,619 rooms across 20 hotels with the largest additions in the luxury segment with 1,685 rooms across 8 hotels, accounting for 36 per cent of new supply. This is followed by the upper upscale segment with 1,520 rooms by 6 hotels.
The number of overnight visitors to Dubai grew 9.1 per cent last year, up from 17.15 million in 2023, further solidifying Dubai’s position as a global tourist and hospitality destination.
2024 performance
Dubai added 4,255 rooms across 19 hotels to its inventory in 2024, representing year-on-year growth of almost 3 per cent. As of December 2024, the city boasted 724 hospitality establishments, with 151,245 keys between them.
High-end accommodation continues to dominate Dubai’s hotel offering. In 2024, almost 70 per cent of room supply fell in the high-end category. Of the upcoming supply for 2025, nearly 70 per cent will be in the luxury and upper upscale segment.
“Dubai’s world-leading hospitality and tourism sectors set more records and reached new milestones in 2024, with 18.72 million overnight visitors, adding a string of prestigious new tourism-industry awards to its name and 4,255 new hotel rooms coming to the market. We can look forward to continued strong performance in 2025, with another 20 hotels and resorts due to open, further highlighting Dubai’s position as a world-leading hub for tourism, hospitality, business and leisure,” said Gergely Balint, associate partner, commercial valuation and hospitality expert at Cavendish Maxwell.
In 2024, Balint said tourism contributed Dh236 billion, up from Dh220 billion in 2023, to the UAE’s economy, representing 12 per cent of the nation’s GDP.
Dubai’s hotel occupancy levels remained steady, rising to 78 per cent in 2024 – an increase of 1 per cent in 2023.
Average daily rates in Dubai reached Dh690, a slight increase of 0.2 per cent in 2023, indicating pricing stability in Dubai’s hospitality market.
