Hospitality sector of Qatar, scores significant growth in 5 years

Hospitality sector of Qatar has make great strides in the past five years. The total number of hotel rooms have surged by around 64 percent while the number of hotels have grown by about 30 percent during 2013 to 2017.

The number of hotels increased from 83 in 2013 to 108 in 2017 while the number of rooms jumped from 13,577 to 22,288 rooms in the same duration, according to the Ministry of Development Planning and Statistics data.

Biggest gain was seen the case of luxury hotels which witnessed largest expansion during the period. The number of luxury hotels jumped by 46 percent during the five-year period, registering the highest increase among the different category of hotels.

There were 33 luxury hotels in 2013 which increased to 48 at the end of last year. The rooms in these hotels increased from 7634 in 2013 to 11,106 rooms at the end of last year,  reflecting a substantial rise of around 45 percent.

The number of four star hotels increased from 20 to 26 during the five-year period while the number of three star hotel grew from 21 to 27 hotels during the period.

Qatar’s hospitality landscape has been dominated by five and four star hotels. Around 50 percent of hotel rooms in the country belonged to five-star hotels at the end of 2017.   The dominance of luxury hotels is likely to continue in the near future.

The supply of new properties in the country suggests that luxury hotels will continue their reign in the local market in coming years.

The bullish run of Qatar’s hospitality sector is expected to continue in the coming years and 2022 FIFA World Cup is a major driver of growth for hotels. It is estimated that more than one million fans are expected to visit Qatar during the World Cup.  

Qatar has taken several measures to boost tourism in the country that will benefit the hospitality sector. In September last year, the country witnessed the launch of the Next Chapter of its National Tourism Sector Strategy 2030, which charts the next five years of the tourism sector’s growth in Qatar.

The Next Chapter aims to attract 5.6 million visitors to Qatar annually by 2023, double the number which the country welcomed in 2016.

It also aims to achieve a 72 percent occupancy rate across all hotel establishments, through a combination of increasing demand and diversifying the country’s tourist accommodation offerings.