Qatar could see its hospitality market grow by 89% to over 56,000 hotel keys by 2025, according to research carried out by global property consultancy firm, Knight Frank, with the delivery of the planned hotel room supply forecast to cost approximately $7bn.
Knight Frank says tourist arrivals are recovering as the authorities are scaling back Covid-linked travel restrictions, with arrivals from the GCC states already starting to exceed pre-pandemic levels. That said, visitors from India, which has historically been the biggest source of inbound arrivals are still about a third lower than they were in 2019, the report said.
Adam Stewart, partner and head of Qatar, Knight Frank, said: “Officially, around 30,000 keys had been delivered by the end of 2021, and we estimate that another 3,800 keys will have been delivered by the time the World Cup commences next month. In addition, Qatar’s hotel capacity will be temporarily boosted by an additional 3,900 cabins in two luxury cruise ships moored off the coast; and a third is being planned. In addition, cabin-style rooms across seven fan villages, designed to house the 1mn fans expected to descend on the State during the World Cup are also being rapidly assembled.
“Looking beyond the World Cup, however, reveals some incredible ambitions. The tourism and hospitality sector is expected to contribute 12% of GDP by 2030, making it worth about $55bn, by which time tourist arrivals are forecast to be closing in on 7mn.”
Faisal Durrani, partner and head of Middle East Research, Knight Frank, added: “While there is palpable excitement in Doha as the FIFA World Cup draws near, for the country’s hospitality sector the best is yet to come. Indeed, with nearly 27,000 hotel keys expected to be delivered in the next three years, there will be a phenomenal change in Qatar’s hotel offering by the end of 2025. The near doubling in capacity to over 56,000 rooms will be in a post-World Cup environment and comes as the country prepares for an anticipated visitor influx following heightened interest in Qatar once the excitement of the World Cup subsides.
“Indeed, with new theme park attractions planned in Lusail such as the new Winter Wonderland and Aquatar on Qetaifan Island, which promises to deliver the world’s tallest waterslide, the seeds of a vibrant tourism and hospitality market are starting to take shape.”
Stewart highlighted, “Interestingly, by the end of 2025, international hoteliers will control 62% of Qatar’s hotel keys, up from 59% today. In reality this could be even higher as 17% of rooms are yet to be allocated to an operator.”
Turab Saleem, partner and head (Hospitality, Tourism and Leisure) said, “Like other markets in the region, the focus is very much on the higher end of the price spectrum. Just 14% of the expected hotel keys are in the 3 star and lower category; however, this is the segment that could present the greatest opportunity to transform Qatar’s appeal to a wider audience, particularly in the wake of the World Cup which will put the country in the global spotlight”.
Knight Frank’s analysis shows that 76% of planned rooms will be classed as either 4- or 5 stars. Today, 69% of Qatar’s hotel rooms fall into this category.
“One consideration for operators will be to actively target tourists looking for affordable, or budget-holidays, perhaps through the provision of all-inclusive packages which are already very popular in markets such as Spain, Greece, Turkey and the Caribbean”, Durrani concluded.
 
 
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