Dubai, Abu Dhabi and Sharjah have led the recovery in the UAE's tourism sector, with demand for hotels in the three emirates rising significantly during the second quarter of the year, according to a new report.

Hotels in Dubai, which recorded a 197% year-on-year (YoY) growth in international overnight visitors during the first five months of the year, saw average daily rates (ADR) rising by 54% (percentage points) in the second quarter compared with a year ago, posting the highest growth among UAE markets. 

Sharjah's hotels came second, recording a 53% increase, followed by Abu Dhabi at 35%, Colliers said in its new report.

As for occupancy levels, Abu Dhabi led the table with a 31% increase, while Dubai and Sharjah posted 30% and 15% growth, respectively.

The three emirates also experienced the highest increase in revenue per available room (RevPAR) levels.

Except for Fujairah, which recorded a 5% decline in occupancy, all the other markets in the UAE saw an improvement in their performance.

"The UAE continues to lead as one of the top global tourism destinations. The market has maintained its recovery in tourism levels throughout Q1 and Q2, showing signs of recovery in both domestic and international tourism demand when compared to 2021 figures," Colliers said.

Around 6.17 million people visited the UAE in 2022, three times the visitor arrivals recorded a year earlier. 

One of the most popular tourist destinations in the UAE, Dubai saw online searches and bookings reaching almost pre-pandemic levels this year. 

The trend is the result of continued promotion of destination marketing and ease of entry into the emirate for business and leisure travellers, according to the Department of Economy and Tourism.

(Writing by Cleofe Maceda; editing by Daniel Luiz)