How short-term lets are boosting the UAE economy

Over the past decade, travellers have increasingly sought alternatives to traditional hotel accommodations, and global short-term let platforms such as Airbnb and local platforms such as Frank Porter, have transformed the industry from a novel concept into a primary choice for many vacationers.

Now, short-term let agencies are commonplace, and they are enjoying an exponential uplift, which is showing no signs of slowing down. This presents an exciting opportunity for the local market.

Freedom for travellers fuelling demand

This type of accommodation offers a range of benefits. In many destinations, short-term rentals are more affordable, and with the growing trend of blending business with leisure travel and extended stays, they provide even greater value while offering a more comfortable, home-like experience.

Short-term lets also offer the flexibility of larger spaces, which are particularly helpful if families, multi-generational groups, or friends have a mix of needs. For example, working parents might need beach access but also a comfortable working space – or separate bedrooms and a kitchen to prepare their own food.

Additional benefits include the convenience of being closer to local amenities and vibrant communities. This is especially relevant in the UAE, where many hotels and resorts are somewhat isolated, often requiring taxis to reach shops, restaurants, and cafes.

So, what does all that add up to for the local market?

Affordable accommodation leaves more room for spending

What we are witnessing thanks to a surge of better-value accommodations is that visitors in turn have more money to spend while they are here. We see more travellers immersing themselves in local communities – and spending there. Visitors who have not spent the majority of their travel budget on hotel accommodation have more disposable spending money to put back into local businesses, stimulating the economy.

Travellers immersing themselves in local communities

Holidaymakers and business travellers staying in hotels tend to do everything there; from breakfasts to beach days, many of them never leave their resorts. In contrast, those staying in Frank Porter properties in more residential areas will venture out, and spend their money outside.

Not only does this boost the local market, but it also elevates some of the lesser-known areas outside of the tourist hot spots on travellers’ radars. In turn, this paints a broader picture of the destination in visitors’ minds, beyond what they might have known from the typical tourism campaigns and tropes.

In turn, seeing just how much is on offer, and witnessing the breadth of experiences in UAE, gives them more reason to stay longer and return repeatedly – whether they are seeking culture, relaxation, a sunnier place to work, indulgent shopping, or a family beach break.

Bringing tourism to local neighbourhoods

Now, we are seeing more guests seeking to stay away from densely populated areas in favour of locations that offer a stronger sense of community. Many of Frank Porter’s short-term lets can be found within neighbourhoods such as Dubai Marina, Downtown Dubai, and the villa communities – which provide more of a local neighbourhood experience, with amenities within walking distance.

Providing income for hosts

The UAE’s smart approach to short-term rental regulation and its thriving real estate market position it as a top destination for investors. By effectively balancing economic growth, housing stability, and tourism development, the city is setting a new standard for success in the global short-term rental market.

When considering the economic boost that short-term lets are bringing, the income that local hosts are seeing is considerable. An exciting and reliable investment proposition, the UAE’s market and its strong regulations make this an extremely attractive and fruitful investment for residents and investors. With the remarkable returns of such investments, we are seeing these profits being re-invested in the community, creating a virtuous circle for hosts and the UAE economy.

Knock-on effects on supporting businesses

The growth of short-term rentals is also creating jobs in areas like maintenance, property management, cleaning services, and tourism services, supporting local employment and job stability. The technology short-term let providers is also becoming more advanced, and local companies are benefiting from host requirements such as online booking services, app building and property management software.

Social diversity

As short-term lets evolve the tourism sector, they also give a boost to the social economy. As the UAE attracts a broader mix of nationalities and demographics, the country is enriched in ways that go beyond the bottom line.

Here to stay

Short-term lets will continue supercharging the economy as they bring a surge of visitors who are spending big while they are here. Looking ahead, all the activity we are experiencing at Frank Porter suggests this upward trajectory will continue, with the industry continuing to play a significant part in fuelling exciting economic growth across the country.