DTZ Quarterly Report Qatar Q1 2018: Hospitality Market Overview
The total number of hotel and hotel apartment developments currently operating in Qatar was officially recorded at 122 in QTA’s end of year report for 2017. These properties provide a total of 25,167 keys, including hotel rooms suites and hotel apartments.
Total supply of hotel room keys (not including hotel apartments) at year end was 22,921, contained within 98 properties. Of these, 49.7% were categorised as 5-star, while 37.6% were categorised as 4-star. Current supply is heavily weighed in favour of expensive luxury hotel establishments, however the recent opening of good quality mid-market hotels such as the Holiday Inn, Premier Inn and Millenium Plaza have started to redress this balance.
There are currently in the region of 17,000 hotel keys and serviced apartments at various stages of planning and construction in Qatar, with the majority expected to be delivered to 4-star or 5-star specifications.
The blockade of Qatar in June has had a significant and immediate impact on the hospitality sector, with arrivals to Qatar falling by 23.2% in 2017, despite a year-to-date increase of 1.5% being recorded in June.
Qatar Tourism Authority recently released its National Tourism Strategy, which set out targets for 2023. Targets include boosting occupancy rates to 72% across the sector, and doubling tourist arrivals to 5.6 million. Qatar recently announced the expansion of visa free entry to 80 countries and the introduction of the e-visa platform.
These initiaves have proved relatively successful to date. The ‘visa on arrival’ programme, and online visa application system, coupled with the concentration on new markets have seen traffic from a number of countries increase, notably China (26%), Turkey (22%), Australia (17%), Hong Kong (16%) and Russia (15%). The drive to attract tourists from new markets will be vital for increasing demand to occupy the new hotel rooms that have already been built, and those that are yet to complete.
According to QTA statistics, the overall hotel occupancy for 2017 was 57%, down from 62% recorded in 2016. Average Daily Rates (ADRs) and Revenue per Available Room (RevPARs) were recorded at QAR437 and QAR253 for 2017, representing drops of 9.5% and 15% respectively.
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