By Sachin Kumar
DOHA: Qatar’s hospitality sector offers huge growth potential for affordable hotels — mainly 2-star and 3-star hotels. Currently the country’s hospitality market is dominated by 4- and 5-star hotels. The sector in Qatar now provides approximately 17,900 keys, of which 84 percent are either 4-star or 5-star.
“There is potential for growth for 2- and 3-star hotels in Qatar. Majority of supply in Qatar, coming in next 18-24 months, consist of 4- and 5-star hotels,” said Johnny Archer, Associate Director, Consulting and Research, DTZ Qatar.
Qatar has now emerged as a major centre in the region for financial activities. It has created state-of-the-art infrastructure to host international conferences and exhibitions, which work in favour of hospitality sector in general and affordable hotels in particular.
“Qatar has invested a lot in building conference and exhibition centres which have generated strong demand for business visits. Several professionals coming on business visits like to stay for a night or two in relatively affordable hotels,” said Archer.
After two years where there was little activity in terms of new supply, a number of new establishments have opened in Doha in recent months. In total, 11 new hotels have opened in 2015, adding approximately 1,400 rooms to the hospitality sector. These new hotels have increased the overall number to 118, including apartment hotels.
The Qatar Tourism Authority’s (QTA) mid-year review, released in July, reflected positive results for the key performance indicators in the hospitality market in Qatar. Total tourist numbers between January and June reached 1.53 million, a 7 percent increase on the corresponding period in 2014.
Qatar’s hospitality sector is poised to witness strong growth in coming years.
According to data from QTA, approvals are in place for more than 120 more hotel establishments in Qatar, which if realised will increase the level of supply to approximately 35,000 keys. DTZ’s research has identified 30 new hospitality developments that are under construction and should increase supply in the market by approximately 10,000 keys over the next three years.
The Qatar National Tourism Sector Strategy Plan 2030 has set out a programme to invest $45bn in tourism projects over the next 15 years, which will aim at attracting a larger amount of tourist numbers from outside GCC, with an ambitious target to increase overall.
The Peninsula
