The hospitality markets of the UAE and Qatar are expected to grow the fastest in the Gulf region over the coming four years, driven by tourism-related developments, according to the latest report by Alpen Capital, an investment banking advisory firm.
Alpen Capital forecasts a growth of over 10 per cent annually until 2020 for these two countries’ hospitality sectors. The rest of the GCC (Gulf Cooperation Council) nations are likely to register a growth rate of between 5 and 6 per cent, below the regional average, as per the GCC Hospitality Industry report released on Tuesday.
Hospitality revenues in the UAE and Qatar are forecast to reach $9.8 billion and $1.6 billion respectively by 2020.
The UAE is gearing up to host Expo 2020 in Dubai, a six-month trade fair that is expected to attract 25 million visitors, while Qatar will host the 2022 World Cup. Dubai aims to attract 20 million visitors per year by the time it hosts the expo. The development of tourist attractions, such as theme parks, in Dubai is expected to help increase tourism.
The GCC hospitality market is forecast to grow at a compound annual growth rate (CAGR) of 7.6 per cent to $36.7 billion in 2020, despite a slowdown in 2016, according to the report.
Large-scale international events, new tourist attractions, and an expanding MICE market are anticipated to boost tourist arrivals to the GCC region. International tourist arrivals to the region are anticipated to grow by 5.7 per cent annually between now and 2020.
Outlook for the region’s hospitality industry is strong, even though the drop in oil prices and currency depreciation is affecting demand, Sameena Ahmad, managing director at Alpen Capital, said in a statement.
