Tourism sector surges ahead in first half of 2014

The data were released in QTA’s first half (January to June) 2014 report, comparing performance with the same period in 2013.

All key indicators of the tourism sector demonstrate improvement and growth, showing that the tourism industry in Qatar is continuing its strong performance, QTA has noted.

“This report demonstrates Qatar’s progress towards becoming a developed and sustainable tourism destination,” said Hassan al-Ibrahim, chief tourism development officer at QTA. “Confidence in Qatar’s tourism sector remains buoyant and our efforts continue to bear fruit in terms of promoting and developing the sector.

“The launch in February of the Qatar National Tourism Sector Strategy 2030 provides a clear framework to all sector stakeholders for how we will contribute to moving our country towards a prosperous future and one that is less dependent on oil and gas resources.”

According to the data, total visitor arrivals grew by 8% in the first half, reaching 1.42mn. More than half a million GCC nationals (536,264) visited Qatar during this period, representing around 38% of tourists.

“This healthy growth demonstrates Qatar’s transformation into one of the GCC region’s top business, family and leisure destinations,” al-Ibrahim said, adding: “We have to look beyond mere numbers and make a strategic shift towards quality tourism. This will emphasise hospitality, high standards of service, innovative developments and attractions grounded in Qatari culture and tradition.”

In the first half of 2014, the average hotel occupancy rate rose to 74% from 67% last year, assisted by a 1.9% decrease in available rooms due to renovation-related closures. Total revenue at four- and five-star hotels increased by 4%, reaching QR1.98bn, while total revenue at three-star hotels reached QR82.51mn in a growing area of the hotel market.

Average room rate (ARR) was estimated at QR721 for five-star hotels, QR389 for four-star hotels, QR277 for three-star hotels, QR273 for two-star hotels and QR212 for one-star hotels.

ARR softened in five-star hotels, in particular, relative to prior-year levels (QR814), which were high in comparison to regional benchmarks. However, revenue per available room increased by 8.5% to QR544 across five-star hotels and by 4.5% to QR455 across both four- and five-star hotels.

In the past, QTA counted business visas and tourist visas exclusively, along with the entries of all GCC nationals, for the reporting of visitor statistics. Based upon a thorough review in collaboration with the Ministry of Interior (MoI), Ministry of Development Planning and Statistics (MDPS), United Nations World Tourism Organisation and Oxford Economics - a leading developer of global tourism statistical systems, QTA has now adopted a revised and more accurate reporting methodology.

The figures now incorporate all visit visa types issued by the Ministry of Interior (a total of 14), which more accurately reflect the scale of Qatar’s visitor numbers. Moving forward, all reporting will take into account the expanded range of visas, in line with international standards.

Revised visit data reveal that visitors to Qatar have nearly doubled in five years - from 1.4mn in 2008 to 2.6mn in 2013.

One of QTA’s goals is to provide the industry, investors and hotel developments with accurate information and market data, including well-defined visitor, economic and market statistics. The updated reporting systems reflect the ongoing development of Qatar’s Tourism Satellite Account (TSA), a standard statistical framework and the main tool for the economic measurement of tourism globally.

The development of Qatar’s TSA is being overseen by an intergovernmental committee, led by the MDPS with representation from the Ministry of Economy and Commerce, Ministry of Finance, MoI and QTA.

“This expanded analysis of Qatar’s visitor markets presents an impressive picture of the size, diversity and rapid growth of tourism, even in these early days of developing the sector” said Adam Sacks, president of the tourism economics group within Oxford Economics.

A diverse range of events and activities in Qatar, along with increased regional and international presence during the first half of 2014, contributed to growth in the leisure tourism sector, QTA observes.