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Faisal Durrani, Partner – Head of Research, MENA -
Turab Saleem, Partner – Head of Hospitality, Tourism and Leisure Advisory - MENA
The sector is anticipated to demonstrate an annual growth rate (CAGR 2023–2027) of 11.5%, solidifying Qatar’s position as a dynamic player in the regional tourism landscape.
QATAR – The tourism sector in Qatar continues to experience substantial growth, with 143% increase in visitor numbers during the initial nine months of 2023, reaching 2.8 million compared to the same period last year, as per Knight Frank‘s latest report, Qatar Real Estate Market Review – Autumn 2023.
Despite the increased influx of tourists, hotel performance indicators faced challenges in 2023. The average ADR decreased by 3.4%, while average occupancy declined by 5.4%, resulting in an 8.6% decrease in RevPAR, primarily due to a significant surge in hotel supply during 2022 and the first nine months of 2023.
Faisal Durrani, Partner – Head of Research, MENA, explained: “The overwhelming success of the 2022 FIFA World Cup put Qatar in the global limelight and the benefits are slowly starting to crystalise, especially for the tourism market.
“During 2022, 7,200 keys were added to Qatar’s hotel inventory, with a further 1,200 rooms being added this year. This takes the total supply to just over 40,000 keys. Critically, occupancy levels for the first nine months of 2022 have averaged 54%. Not only is this down on the 57% average recorded over the same period last year, but Qatar is the only GCC nation register a decline in occupancy levels between 2022 and 2023, highlighting the challenge for developers eager to plan for the coming visitor boom”.
Turab Saleem, Partner – Head of Hospitality, Tourism and Leisure Advisory – MENA, added: “Developers and hotel operators have a fine balance to achieve between maintaining high occupancy levels and not stifling the market with extra supply. Partnering with the government to understand its growth targets and ensuring the correct hospitality, entertainment and entertainment infrastructure is in place will help to deliver more sustainable growth in the long term, just as we have seen play out in other major markets across the Middle East, including Riyadh and Dubai.”
The revenue projections for the travel and tourism market paint a positive picture, expected to reach US$ 510 million in 2023.
Vicky is the co-founder of TravelDailyNews Media Network where she is the Editor-in Chief. She is also responsible for the daily operation and the financial policy. She holds a Bachelor's degree in Tourism Business Administration from the Technical University of Athens and a Master in Business Administration (MBA) from the University of Wales.
She has many years of both academic and industrial experience within the travel industry. She has written/edited numerous articles in various tourism magazines.
