International tourist arrivals in Qatar have been forecast to touch 2.9mn by 2022, according to Alpen Capital.
By end-2018, the country will have 1.75mn international tourist arrivals, Alpen Capital said in its ‘GCC Hospitality Industry’ report.
Travel and tourism spending in Qatar has seen a nearly 4.5% increase to $14.2bn in 2017, the new report said.
Leisure tourism increased by 8.66% to $8,6bn, Alpen Capital said in its ‘GCC Hospitality Industry’ report.
Between 2015 and 2017, the travel and tourism spending registered a 11.7% compound annual growth rate (CAGR), Alpen Capital said.
Qatar has the highest share in business spending in the GCC region on account of country’s efforts to promote Qatar as a leading destination for business meetings, events and exhibitions.
Qatar’s business events segment contributed 5.3% to the country’s non-hydrocarbons GDP in 2016.
Qatar is witnessing an increase in hotel supply on account of FIFA World Cup 2022, which is expected to attract over a million visitors to the country.
Qatar’s hotel supply stood at 22,461 hotel rooms and 2,706 service apartments in 2017. Qatar is expected to have a hotel supply of 46,000 rooms by 2022.
In terms of the hospitality market, Alpen Capital noted Qatar is expected to grow at a CAGR of 12.1% (2017-2022) to $1.4bn by 2022. Its hotel sector is dominated (70%) by 4-star and 5-star hotels.
International tourist visits are expected to grow at a 5-year CAGR of 5% to 2.9mn whereas the hotel supply is expected to grow at a 5-year CAGR of 12.8% to 46,000 hotel rooms.
Average Daily Rate (ADR) is expected to grow at a 5-year CAGR of 0.5% to $164 until 2022, whereas the Revenue Per Available Room (RevPAR) is expected to decline at a 5-year CAGR of 0.4% to $91 by 2022.
According to Alpen Capital, Qatar is required to have 60,000 hotel rooms by 2022 as per FIFA guidelines.
By 2021, Qatar is scheduled to open some 21 new hotels consisting mainly five star and four star hotels, it said.
Qatar witnessed an increase in hotel supply in 2017, the report said.
The hotel supply according to DTZ reached to 25,000 in Q4, 2017. Majority of the hotel supply in Qatar is dominated by 4 star and 5 star luxury brands, however it also saw openings in the mid-market hotel segments.
In addition to the FIFA World Cup 2022, Qatar is expected to host the World championships in Athletics in 2019 along with the World Aquatics Championships in 2023, the report said.
Alpen Capital said the ‘Qatar National Tourism Sector Strategy 2030’ targets 5.6mn international tourist arrivals by 2023 and achieve an occupancy rate of 72%.