Qatar Is Set To Clock GCC's Highest Growth In Hospitality Industry Revenue Until 2028
Date
6/20/2024 11:07:28 PM
(MENAFN- Gulf Times) Hospitality industry revenue in Qatar expected to witness the highest growth rate in GCC until 2028, Alpen Capital has said in a report.
Qatar's hospitality sector is projected to rise at a compound annual growth rate (CAGR) of 11% (from $0.9bn in 2023) to $1.5bn in 2028.
The growth will be fuelled by investments in developing luxury infrastructure and successful hosting of international sporting events, it said in its latest report on 'GCC Hospitality Industry'.
According to Alpen Capital, Qatar has grown as a global tourism destination driven by hosting large-scale sporting events and the continuous development of tourism-related infrastructure over the past two years.
The growth momentum that built up since the FIFA World Cup 2022 is expected to continue, owing to the strategies implemented by the government since the conclusion of the tournament.
Qatar offers visas on arrival to citizens from about 102 countries and has simplified its visa procedure by re-launching the Hayya platform in 2023, which serves as a centralised platform for all tourist and corporate visas.
The report noted that Qatar has also developed a number of tourist attractions, including various cultural and modern landmarks, such as the Meryal Water Park, The Pearl Island, and the Katara cultural village.
Under its national tourism strategy, the country aims to attract about 6mn visitors annually and increase the tourism sector's contribution to GDP to 12% by 2030.
“To achieve these targets, Qatar has placed its focus on hosting large-scale international events to attract tourists to the country,” Alpen Capital said.
In 2024 alone, Qatar is slated to host over 80 events scheduled throughout the year, including cultural festivals, sports tournaments, e-mobility panels, summits, and others.
These efforts from the government to increase the number of international tourists in the country are expected to drive demand for accommodations and hospitality services across the country. Therefore, the hotel room supply in Qatar is projected to grow at an annualised rate of 6.3% from 2023 to 2028, and the occupancy rate is estimated to expand to 65.0% by 2028.
Consequently, the average daily rates (ADRs) are expected to grow at a CAGR of 2.1%, reaching $125 by 2028 from $112.6 in 2023, while revenue per available room (RevPAR) is anticipated to rise at a CAGR of 4.5% to reach $81.2 by 2028 from $65.3 in 2023.
Besides Qatar, Kuwait is expected to grow above the GCC average over the forecasted period (2023 to 2028), Alpen Capital said.
MENAFN20062024000067011011ID1108355754
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.