BMI Research is suggesting that Qatar’s hotel scene will see new growth as international and domestic groups focus on the region. BMI noted that the value of the domestic hotels and restaurants industry will continue to rise over 2016, reaching $1.6 billion, a 5.4-percent rise over the year. By 2020, this will have risen to $2.2 billion, the Fitch Group company said in a recent report.
Thanks to the National 2030 tourism initiative, there has been a “great deal of investment” in the hotel market in Qatar—but if the country will be able to accommodate the 7 million tourists per year year that it wants to attract, there will have to be a significant increase in hotel options.
BMI estimated that the luxury segment grew as much as 75 percent between 2009 and 2014, whereas the mid-scale portion increased by just 22 percent. But with a broader demographic visiting the country, Qatar will need to diversify its offerings. This will also encourage visitors to stay longer, BMI predicted.
“The winning of the FIFA World Cup set to be held in 2022 in particular has increased interest in the country, with companies beginning to plan for developments to be ready by this time. Doha is currently the city being targeted most by developers, but as more tourists visit the city there is hope that tourism can be spread around the country more evenly.
“Over the next five years, the value of the hotel industry is set for a y-o-y average rise of 8.2 percent. This reflects rising investment as well as increasing arrivals as the popularity of the destination grows,” BMI said in its report.