PUBLIC TRANSPORT INFRASTRUCTURE UNDER DEVELOPMENT PROVE THAT TOURISM CAN PLAY A CATALYST ROLE IN THE SOCIO-ECONOMIC GROWTH OF EVEN ONE OF THE RICHEST COUNTRIES.
Over the last decade, Qatar’s steady development has been fuelled by the robust expansion of the state’s oil and gas production, which, according to the International Monetary Fund, still accounts for more than 50 percent of the national GDP, around 85 percent of export earnings and 70 percent of government revenues.
With income generated by tourism set to hit USD11.9 billion by 2020, the industry continues to play an ever-increasing role in Qatar’s economic diversification strategy that aims to reduce the state’s reliance on hydrocarbon resources and shield it from market fluctuations.
As a direct consequence of Qatar National Vision (QNV) 2030, through a series of fine-tuned plans, projects and policies, the National Tourism Sector Strategy 2030 maps out a clear direction for the future by promoting private sector opportunities, enhancing tourism human capital and ensuring that marketing efforts are implemented to their best effect.
“The royal family has developed an economic and social plan for Qatar […] which is based on four pillars: human, social, economic and environmental development,” explained Janet Turner, area director of sales and marketing, Qatar, Kuwait and Bahrain, InterContinental Hotels Group, noting how the ventures currently underway across Qatar serve as viable evidences of these endeavours.
“QNV has outlined a vast infrastructure expansion programme, including but not limited to major transport, retail and real estate projects,” added Turner.
In fact, this year only, over USD65 billion is expected to be invested in infrastructure.
According to Thomas Fehlbier, cluster general manager, Banana Island Resort Doha by Anantara, Souq Waqif Boutique Hotels and Souq Wakrah Hotel, these multimillion dollar developments will notably transform transportation, housing as well as the destination’s entertainment scene.
“By leveraging these initiatives, Qatar is moving to the forefront of sustainable urban growth.
They will heighten both the economic and social development of the country and will further leverage and brandish Qatar’s image as a vibrant tourist and business hub that caters to discerning travellers as well as to local, regional and international business professionals,” added Fehlbier.
CATALYST ROLE
In line with the goals of QNV, some USD92.98 billion is being injected into constructions and USD82.17 billion into transport-related developments.
To put this into perspective, gas projects are set to be bolstered by around USD10.3 billion, while power developments will receive a support of USD2 billion.
On the back of increased investments and elaborated strategies, Qatar continues to make strides in raising its status on the global tourism map with arrivals to the country reaching 1.4 million in the first half of the year.
Though the figure represents a year-on-year decrease of six percent – mainly due to the negative impact of the timing of this year’s Ramadan – the industry remains a crucial asset in the state’s diversification strategy with positive achievements to build on.
Visitor numbers from the GCC for example jumped six percent with Saudi Arabia, Qatar’s largest source market, delivering a 10 percent increase and the UAE exhibiting a 13 percent improvement.
Due to the slowdown in demand and the continuous growth in supply, occupancy and average room rates showed declines compared to the corresponding period in 2015, with occupancy standing at 64 percent at hotels and hotel apartments, partially attributable to a 10 percent hike in net increase in the number of available rooms across four new properties since the end of June 2015 – yet another sign of Qatar’s expanding tourism scene.
With its plethora of events, the recent Qatar Summer Festival is expected to significantly contribute to year-end results which are anticipated to be further strengthened by the upcoming cruise season.
According to Qatar Tourism Authority (QTA)’s data, up until mid-August, 32 ships have registered to dock in Doha’s ports, bringing in some 50,000 passengers – a ten-fold surge over 2015.
To not only maintain but also improve performance, QTA’s focus remains on delivering products that can retain leisure visitors and increase the average length of stay of business travellers.
To this end, the organisation is engaged on various fronts in line with the national tourism strategy to develop a sustainable sector through efforts aimed at encouraging industry-related investment, boosting the cruise segment and expanding international promotional activities.
As Qatar becomes an increasingly better known and a more sought-after destination, BMI Research anticipates international receipts to rise 5.4 percent this year to 3.1 million travellers.
With a range of developments and initiatives underway, growth is set to continue at a similar pace over the coming years, with a significant percentage of the millions of visitors being associated with high spending power.
Underscoring the industry’s increasing significance, according to World Travel & Tourism Council (WTTC), in 2015, the sector directly contributed USD5.2 billion to the national GDP, representing 2.8 percent of the total, with leisure travel showing a higher growth rate than the previously all-important business segment.
By allocating billions of dollars for various relevant projects and initiatives, by 2030, tourism is expected to make up some 5.1 percent of GDP.
In line with these, arrivals to the country are set to soar to four million by 2020, up from mere 1.2 million in 2012, reflecting the leadership’s unwavering faith in the Qatari tourism sector’s strength and potential.
