Europe and America are Qatar’s dominant tourism source markets has been saved
Europe and America are Qatar’s dominant tourism source markets
Deloitte: Qatar to establish itself as a strong tourism hub in the Middle East
29 October, 2014 – Deloitte Middle East has recently launched its latest quarterly “Middle East Hotel Market Intelligence Report”, focusing on Qatar. The report that highlights key trends and analysis on the tourism, hospitality and leisure (THL) industry across Qatar, finds that Europe and America are Qatar’s dominant tourism source markets and that Doha’s hotel stock will continue to grow.
As the tourism sector has come to the forefront of Doha’s development goals, some of the planned projects aimed at driving demand have started to materialize, such as the new Hamad International Airport and the new Doha Exhibition and Convention Center.
Moreover, Doha’s hotel market which is driven by improving fundamentals, achieved 72% market wide occupancy levels in YTD August 2014, despite the significant increase in supply over the last 2 years. The rise in demand for hotel accommodation in Qatar in recent years is in part a result of an increase in business travel as a result of Qatar’s preparations for the 2022 FIFA World Cup and related infrastructure and other major developments.
“Market wide occupancy in Doha’s hotels has improved in recent years. In 2009, Doha had a total supply of 49 hotels, but by Q2 2014, this increased to 74 hotels representing an increase of 60% over the same period,” explains Grant Salter, director, Tourism, Hospitality and Leisure (THL) industry at Deloitte Middle East.
The Deloitte report further finds that hotel demand in Qatar, as measured in hotel rooms sold, is increasing with a recorded growth of approximately 11% per annum from 2008 to 2013. Hotel supply has increased by approximately 13% over the same period, resulting in an occupancy level of 65% at 2013. This mismatch in supply growth and demand growth has led to a decline in room rates as the market competes for customers.
Looking forward, Doha’s hotel pipeline is likely to be driven by the need to meet supply targets for the 2022 FIFA World Cup. There is a substantial amount of supply in the pipeline with over 44 hotels across all market sectors in varying stages of planning or construction, primarily in the Luxury, Upper Upscale and Upscale segments which are estimated to provide over 11,000 additional keys. The Midscale and Economy hotel pipeline is quite limited in Doha with only a few hotels under construction or in the planning stages suggesting that there is potential to consider development in this sector
Significant tourism infrastructure needs to be developed in order to support such levels of demand now and beyond 2022. Notably, the nature of demand after 2022 is likely to change from the current demand profile which is to a relatively large extent driven by construction-related industries.
“Clearly there is limited time to construct the high volume of hotel rooms required to meet the 2022 targets. To deliver 42,000 rooms, i.e. 210 new hotels over 7 years, at a rate of over 30 properties per year, will require focus in order to achieve delivery, particularly when compared to Qatar’s peak delivery rate of 12 hotels in 2012” concludes Salter.
To view the whole report, go to: http://bit.ly/1yFam8G
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About Deloitte & Touche (M.E.):
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Deloitte is among the region’s leading professional services firms, providing audit, tax, consulting, and financial advisory services through 26 offices in 15 countries with around 3,000 partners, directors and staff. It is a Tier 1 Tax advisor in the GCC region since 2010 (according to the International Tax Review World Tax Rankings). It has received numerous awards in the last few years which include Best Employer in the Middle East, best consulting firm, and the Middle East Training & Development Excellence Award by the Institute of Chartered Accountants in England and Wales (ICAEW).