Quarterly Report Qatar Q3 2023: Hospitality Market Overview
Strong increase in tourist arrivals evident since the start of the year is supporting occupancy rates
According to statistics released by the Planning and Statistics Authority (PSA), visitor arrivals to Qatar have soared in 2023. By September, 2.46 million people arrived in Qatar, which represented a 140% increase on the same period in 2022.
Visitor arrivals also beat the previous year-to-date record, set in 2015, by 23% – with many of the intervening years being impacted by the blockade and by COVID-19.
The total supply of hotel rooms in Qatar has now surpassed 38,000 and is expected to surpass 40,000 rooms with the completion of a number of new projects in the next year. Total supply of rooms has increased by more than 25% over the past 18 months, an increase driven by Qatar’s need to provide hotel accommodation to host the FIFA 2022 World Cup.
New hotels that are expected to open in the coming months include Andaz Doha, Four Seasons Resort and Residences at the Pearl Island, NH Collection Oasis Doha Hotel, Rixos Qetaifan North, Rosewood Doha, and Waldorf Astoria West Bay.
PSA statistics showed that occupancy rates remained stable in Q3 compared to the same months last year; however, supply has significantly increased over the same period. Occupancy rates for July and August were recorded at 52% and 53% respectively, compared to 55% and 52% in 2022.
Average Daily Rates for the entire hotel sector dropped from QAR 440 to QAR 404 in Q3, indicating increasing value for guests as a higher number of hotels compete for guests.
Following several turbulent years due to COVID-19, the tourism industry globally is experiencing significant recovery in 2023. While this has been the case in Qatar, with arrivals significantly up on previous years, the increase in hotel supply means the performance metrics of many hotels have not reflected the overall improvement. Cushman & Wakefield are aware of an increasing disparity between hotels, with some of the higher quality entities significantly outperforming others in the market.
Qatar’s focus on increasing the number of international sporting and conference events has helped to boost occupancy in recent months, with events such as the F1 Grand Prix and the Geneva Motor show seeing hotel rooms reach full capacity for short periods. An ongoing focus on events and the launch of new tourism and leisure projects will be required to increase performance as supply grows in the coming year.
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