KSA tops Dubai's tourism arrivals with 1.5 million

Saudi Arabia (KSA) continues to dominate tourism arrival figures in Dubai, followed by India and the United Kingdom (UK), according to the recent "Middle East Hotel Market Insight Report" by Deloitte and STR Global.

The second edition of this report, released in October 2015, highlights key trends and analysis on the tourism, hospitality and leisure (THL) industry focusing on Dubai in particular.

The research indicates the largest number of visitors in 2014 arrived from KSA (1.5 million), followed by India (0.9 million) and the UK (0.8 million).

"The continued growth in demand, albeit at lower levels of growth, fuelled by ongoing improvements in tourism infrastructure and strong hotel operating performance, has stimulated continued investor interest in hotel development in Dubai," explains Deloitte Middle East Director Tourism Hospitality and Leisure Advisory Grant Salter.

"Despite the changing market dynamics in Dubai, demand for hotel rooms will continue to grow in 2015. The current drop in the average room rate will have a positive effect in maintaining the occupancy levels throughout the city and to some extent this shift was necessary to keep Dubai competitive as it moves towards achieving its targeted growth in visitors during the Expo year in 2020," said STR Global area director Middle East & Africa Philip Wooller.

Arrivals to the emirate from the USA fell by just over 3% in 2014, while almost 11% fewer Germans visited. The research also revealed a 15% decline in Russian tourists due to domestic economic challenges and the resultant impact on the exchange rate.

Most notably visitation from China and Iran grew at 24% and 41% respectively indicating a growing appeal for Dubai from these source markets.