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QTM aims to position Qatar as the gateway to the Arabian Gulf: a central travel and tourism hub and stimulate Qatar's growing tourism industry – enabling international buyers and visitors to discover what Qatar has to offer and consider it part of their travel plan.

The State of Qatar will spend US$45 billion to expand the tourism sector by 2030 as part of the National Tourism Sector Strategy 2030, making it the fastest growing market in the region. Qatar could see its hospitality market grow by 89 percent to over 56,000 hotel keys by 2025, with the delivery of the planned hotel room supply forecast to cost approximately US$7 billion.

As a result, Qatar's hospitality market is booming, with hotel, restaurant, cafe & catering (HORECA) and F&B sectors expected to reach a value of US$13.6 billion by 2026, creating numerous opportunities for suppliers in the hospitality industry.

That is not all. Tourism is expected to contribute 12 percent of Qatar’s global domestic product, or US$55 billion, and the country hopes to receive close to 7 million tourists by 2030. With nearly 27,000 hotel keys waiting to be delivered in the next three years, Qatar’s hotel offering will undergo a huge transformation by 2025.

Qatar has seen a significant growth in the hospitality sector evident by increase in tourist numbers. Approximately 90 percent of hotel rooms in Qatar are classed as four star or five-star, with most apartments being classed as ‘deluxe’. Hotel performance has been boosted somewhat in recent months by the increase in tourist numbers to Qatar. While third quarter (Q3) of this year was subject to the usual fall in arrivals due to the high summer temperatures, the official figures for the first six months of the years reflected a record number of tourists arriving in the State of Qatar, Cushman & Wakefield noted in its Q3 2024 Real Estate Market Review.

Increasing visitors and a relative slowdown. The impact of increasing visitors and a relative slowdown in addtional supply is reflected in the performance metrics this year. According to STR Global who compile internation- al hospitality sector statistics, overall occupancy for the year to date (January-September) in Qatar is 66 % percent which is up from 53.7 percent in 2023. The ADR has increased from QR407 to QR431 over the same period.

The improved performance witnessed throughout Q1 and Q2 continued in Q3. Hotel occupancy for Septem-ber 2024 was 63.4 percent, up from 57.7 percent in September 2023. Average Daily Rates in September increased from QR359 in 2023 to QR380 this year. The improvement in hotel performance in 2024 is

encouraging for the sector and illustrates the benefits of Qatar hosting an increasing number of international events, such as the Asian Cup, Formula 1, and Web Summit. Despite increasing revenues and occupancy, the market remains challenging and will require sustained government investment in the sector as Qatar looks to become established as an internationally recognized destination for leisure tourism and events.

Growth trajectory of the Qatari hospitality industry

1. It is forecasted that the hotels market in Qatar will witness a substantial surge in revenue, with projections indicating a rise to US$526.20 million in 2024.

2. Furthermore, it is expected that this upward trend will continue with an annual growth rate (CAGR 2024-2029) of 2.97 percent, resulting in a projected market volume of US$609.20 million by 2029.

3. Additionally, the number of users in the Hotels market is expected to reach 1.23 million users by 2029, with a user penetration rate of 34.3 percent in 2024, rising to 43.2 percent by 2029.

4. The average revenue per user (ARPU) is expected to be US$560.70. It is worth mentioning that in the Hotels market sector, 87 percent of total revenue is expected to be generated through online sales by 2029.

5. Moreover, in terms of global comparison, United States is expected to generate the most revenue in the Hotels market, with a projected revenue of US$111 billon in 2024.

6. Qatar's hotel market is evolving rapidly with a focus on luxury, innovation and sustainability to attract high-end tourists.

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