Q3 2015 Qatar Market Report: Hospitality Market Overview
Hospitality Market Overview
The Qatar Tourism Authority’s 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 1,528,718, a 7% increase on the corresponding period in 2014.
The Qatar National Tourism Sector Strategy Plan 2030 has set out a program to invest $45bn in tourism projects over the next 15 years, which will aim to attract a larger amount of tourist numbers from outside GCC, with an ambitious target to increase overall annual arrivals to 7 million.
The increase in tourist numbers resulted in an increase in occupancy rates by 2% between January and June compared to the corresponding period in 2014. Despite the recent increase in occupancy levels, Average Daily Rates (ADR’s) for the same period fell for the by 2%, following the downward trend which has been evident since 2008. DTZ expect occupancy levels to come under pressure in the coming years as up to 4,000 new hotel rooms are scheduled to come to the market by the end of 2016.
Occupancy levels are likely to be tested further in the medium term as the supply of hotel rooms continues to increase to meet Qatar’s FIFA 2022 obligations. 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 hospitality sector in Qatar now provides approximately 17,900 keys, of which 84% are either 4-star or 5-star. According to data from QTA, approvals are in place for more than 120 more hotel establishments in Qatar, which if realized will increase the level of supply to approximately 35,000 keys.
DTZ’s own 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.
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