Dubai ‘well-positioned’ to ride global economic uncertainty wave, says tourism chief

Dubai: Dubai’s tourism sector remains confident in its ability to navigate potential global economic headwinds and a looming potential recession, citing the city’s established position, diversified offerings, and inherent agility.

Speaking to the media ahead of the Arabian Travel Market (ATM), Issam Kazim, CEO of Dubai Corporation for Tourism and Commerce Marketing (Dubai Tourism), acknowledged the interconnectedness of the global economy but stressed Dubai’s resilience.

“I think Dubai is very well positioned to be able to actually ride this wave,” Kazim said. “The diversified approach that we’ve created for the destination also helps us in this.”

The tourism chief confirmed that Dubai Tourism has enjoyed a 3 per cent year-on-year growth during Q1 2025. “Whereas we have already come back in 2023 with record numbers, and it was a great year for us, 2024 saw a 9 per cent growth in terms of visitation. We had about 18.72 million (overnight visitors) that came into Dubai. And so far, the first quarter of this year is 3 per cent ahead, which means we keep raising the benchmark,” explained Kazim.

The ongoing US-China trade war has caused significant downturns to global markets, including Saudi Arabia. Share prices of leading hospitality companies, such as the InterContinental Hotels Group (IHG), suffered a drop in its share prices. IHG suffered a 7.9 per cent fall in share prices in the past month.

While some markets may be impacted more than others by economic pressures, Kazim said that travel will remain crucial for business and leisure. Referring to evolving travel trends, he said people might opt for fewer or shorter trips or potentially stay longer. “There will be that segment that we need to focus on within the traveling parties, and I’m confident that we will be able to ride this wave in a positive way.”

He added that Dubai’s strong integration between the private and public sectors fosters agility, allowing for swift adaptation to the volatile global landscape. “We’ve always been riding different waves, and we’ve been able to find solutions all the time by relying on this partnership,” he stated.

Chipping in, Haitham Mattar, the Managing Director at IHG Hotels and Resorts said, “We are currently in a period of adjustment globally, and everyone is assessing the potential impact of those various announcements that we’ve heard.” He added, “It is too early to say with certainty what those impacts will look like, but I think it is uncertain. And in the meantime, we reflect on the global markets, and what Issam has said certainly gives us greater confidence about what Dubai is poised for in the next years.”

Regarding US travel demand, Emirates airline’s Chief Commercial Officer Adnan Kazim said the airline is seeing solid bookings for April, with no dip observed yet. However, potential future impacts from factors like tariffs and visa policies remain unknown, Kazim said referring to talks about another travel ban for Muslims to the US.  

Despite global economic uncertainties, currency fluctuations, and other challenges, the overall booking outlook for May through winter is trending positively across the network, even better than last year.

Kazim said the airline industry is accustomed to navigating various disruptions throughout its history, including geopolitical issues and economic downturns. “We have gone through many of these kind of turbulences in past,” he said, suggesting that this experience contributes to their ability to “maneuver through current uncertainties.” While the positive trend is expected to continue, the airline is prepared and agile, drawing on experience to adapt operations should the situation change.

He noted that upcoming financial results for Emirates (expected to be released by the first week of May) are expected to indicate resilience, and current forward bookings, including for May and beyond, are trending positively, even better than last year in some cases.

Kazim even suggested that any potential shift in travel patterns stemming from the situation could inadvertently benefit Dubai. He explained. “We’re still growing in the booking intake versus last year, which is a good signal that the trend is continuing to stand quite positive.” The airline CEO also said that many global companies continue to see Dubai as the hub for their regional office is a positive sign.