GCC Targets 126,000 New Hotel Rooms By 2030 To Boost Tourism

While tourism to the Gulf is currently declining due to the conflict in Iran, most countries in the region remain confident that an industry boom will soon resume. New research from Cavendish Maxwell indicates that 126,000 new hotel rooms are set to open across the Gulf by 2030, with the total supply across six GCC countries being lifted to 616,000 rooms.

There are approximately 490,000 operational hotel rooms in the GCC, with the UAE alone comprising 43%. As of August 2026, there are 212,135 rooms in the UAE, of which 151,380 are in Dubai. Saudi Arabia is also investing heavily in tourism as part of its Vision 2030 and has the largest investment pipeline for hotel rooms among the GCC countries. By the end of this decade, the Kingdom aims to add 94,500 rooms, bringing the total count to nearly 275,300. The UAE is in the second position with 23,000 rooms in the pipeline, including 11,180 in Dubai.

Hotel occupancy was low throughout the year in all GCC markets, as international travel was discouraged due to geopolitical tensions in the region. Therefore, the hospitality industry suffered much collateral damage despite reasonable pricing.

Both Saudi Arabia and the UAE recorded a 59% room occupancy rate; however, while the rate of occupancy declined by only 3% in the Kingdom, the Emiratis faced a 25% lower occupancy rate, with Dubai’s figures falling by 27%. Saudi Arabia witnessed the lowest decline rate among all the GCC countries.

The tourism sector’s resilience in Saudi could be attributed to domestic tourism and pilgrimage demand. Dubai, on the other hand, relies on long-haul visitors, thereby making it more vulnerable to changes in international travel.

Bahrain suffered the sharpest decline of 31%, recording an occupancy rate of 37%. Kuwait was a close second with 38% occupancy after experiencing an 18% fall. Qatar and Oman stood at 60% and 48%, respectively, after both countries recorded a 13% drop.

Cavendish research forecasts Dubai’s average occupancy at between 60% and 66%, considering peak travel season and the events calendar, with average daily rates between $163 and $183. Both of these figures are estimated to be lower than last year’s numbers.

Room rates remained largely unchanged despite weaker demand during the first eight months of the year, with the UAE’s average daily rate (ADR) falling 7% to $165, while Dubai’s was $168, down nearly 9%. Kuwait’s ADR was less than $199, up 3.2% year on year, while Oman reported a 1% rise to $142. The ADR in Saudi Arabia increased 0.6% to around $199, while Qatar’s fell 4.5% to $117.

Among the GCC countries, Oman proved to be a strong performer until an underwhelming Q2. However, the recent Khareef season and upcoming winter period are expected to boost demand. Limited supply is also a measure to limit additional competitive pressure. In Qatar, upcoming events like the Qatar MotoGP and Formula 1 Grand Prix are expected to improve room occupancy rates and the ADR.

The recovery pace across the GCC will vary, influenced by regional conditions, air travel, visitor demand, as well as the new hotel supply. While the timeline and extent of this recovery remain uncertain, particularly due to the precarious geopolitical conditions in the region, there is much optimism and investment directed towards the tourism and hospitality industries by these countries.

It only remains to be seen whether there will be enough demand, both at the domestic and international fronts, to warrant the amount of investment being poured into these sectors.