Qatar is one of the fastest growing markets in the Gulf, with business and leisure tourism on the ascendant as the country develops its infrastructure as part of a $65 billion investment plan ahead of its hosting of the 2022 football World Cup.
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The country expects to welcome 3.7 million tourists by 2022.
Since the development of attractions like Katara and Souq Waqif, Qatar has gained popularity among families in the GCC, many of whom visit the country over weekends. According to Qatar Tourism, the official government body, the country is entering a sustained decade-long period of development and growth, with over 85,000 new hotel rooms set to bolster current inventory by 2022. Alpen Capital’s October 2012 GCC Hospitality Industry Report highlighted the ‘slow but steady’ growth in tourism receipts, which saw a CAGR of 15.9 per cent in the period 2002 to 2011.
Tourist arrivals in Qatar are expected to rise at a CAGR of 1.9 per cent between now and 2022, and the government’s $65 billion commitment to infrastructure development has proved to be a major incentive for long term investment by leading hospitality providers.
These include the construction of 130 new hotels, resorts and other leisure facilities, not to mention a new international airport, a new port with cruise passenger terminal, a new railway network, with metro, street trams and people carrier, as well as readying some 12 football stadiums by 2022.
In 2012, the capital added to its upscale inventory, with the opening of the St Regis Doha and new InterContinental Doha The City, as well as the country’s first Hilton hotel. A second Four Seasons hotel is currently under development and budget brands are making an appearance with the popular Premier Inn chain debuting on the city outskirts later this year. Currently the luxury segment accounts for between 66 and 78 per cent of supply while, mid-scale and economy supply is between 22 and 34 per cent.
Hotel room capacity in Qatar is expected to grow at a CAGR of 9.1 per cent over the next five years, hitting $1.1 billion by 2016 (up from $0.6 billion in 2011). The country’s national carrier, Qatar Airways will launch six new routes in H1 2013, growing its current network to 123 key destinations. Ground has also been broken on the new $14 million Doha metro network.
Around 75 per cent of Qatar’s inbound visitors travel to the country on business, according to QTA data. This figure is expected to sustain as Qatar has stepped up efforts to accommodate business travellers, with the meetings, incentives, conventions and exhibitions (Mice) segment recognised as key to continued growth.
With the opening of the Qatar National Convention Centre (QNCC), a $1.2m multipurpose complex of exhibition halls, conference venues, function areas and hospitality spaces, the country expects to further grow this segment.