Qatar’s hospitality in global spotlight

Qatar’s hospitality sector has been in the global spotlight with over 1.4 million fans from across the globe visiting Qatar for the FIFA World Cup 2022. The country was the first state in the Middle East to host the world’s biggest sporting event which took place from November 20 to December 18, 2022.

Fans and tourists coming to Qatar for the World Cup had plenty of options to stay. Hotels in the country were ready before the event which will provided a memorable experience to football fans and gave a reason to cheer for the local hospitality sector. Hotels in Qatar witnessed a strong rise in bookings due to the mega sporting event and the hospitality sector saw a surge in demand fueled by initiatives taken by the government the World Cup.

According to Qatar Tourism (QT) that the country had already welcomed over 600,000 visitors from around the world in November, which coincided the last 10 days of the tournament kicking off. The visitors flocked across the globe to cheer for their favorite teams and to visit the most cultural landscapes across the country.

QT pointed out that the visitors from Saudi Arabia led the latest tourism figures (16 percent of total international arrivals), followed by India (8 percent), USA (7 percent), UK (6 percent) and Mexico (5 percent). Argentina, Egypt, Iran, France and Kuwait also make up the top 10 source countries for all inbound international visitors since the World Cup kicking off.

Historic achievement

As the first-ever Middle Eastern nation to host the FIFA World Cup , Qatar’s historic achievement for the region has been followed by further wins and records relating to the tournament.

Up to the opening day on November 20, a FIFA spokesperson revealed that 2.95 million tickets had been sold, comfortably exceeding Russia (2018) where just over 2.4 million tickets were sold. Later, the Argentina-Mexico match at Lusail Stadium saw the highest attendance in record at a FIFA World Cup match since 1994, with 88,966 attendees. Outside the stadiums, the mega-tournament has drawn in record-breaking numbers in TV viewership, across multiple markets.

The first week of the FIFA World Cup Qatar 2022 recorded more than 7,000 flights, the Qatar Civil Aviation Authority (QCAA) had announced, noting that the air traffic at both Hamad International Airport and Doha International Airport saw a significant increase since the kick-off of the tournament. In a statement, the QCAA said that many Gulf carriers began to operate shuttle flights to Qatar. In addition, airlines from Arab countries and the rest of the world enhanced their services to Doha to provide integrated air transport for tournament fans.

In October, QT revealed the opening of more than 20 hotels, resorts, and new tourist destinations in the country ahead of the tournament, stressing that these projects and tourist attractions will be ready to receive fans in the World Cup.

It further noted that 2022 represents an unprecedented year in the process of development witnessed by the State of Qatar, its transformation into a global tourist destination, and its aspiration to increase the number of its visitors to six million visitors annually by 2030.

Acting Head of the Promotion Department of Qatar Tourism, Haya Al Noaimi, said: “2022 is an exceptional year, as it witnessed the opening of many hotels and major tourism projects, from shopping malls to beach clubs, museums and amusement parks.”

She added that they look forward to welcoming in the coming months all visitors to Qatar, who can now experience a new range of hotels, tourist resorts and world-class tourist attractions that suit all categories of visitors, and suit all budgets, noting that in light of expectations, more than one million fans will visit Qatar during the world’s most prominent football event, the FIFA World Cup Qatar 2022, these fans will discover in Qatar much more than iconic country-built stadiums, fan festivals and state-of-the-art facilities, thanks to the many activities and tourist experiences that will be offered throughout the country in conjunction with sports competitions.

New attractions include entertainment venues, seaside and beach clubs, arts and culture houses, shopping malls, and the new Qatar 2022 hotels and resorts. The entertainment venues include many tourist sites, such as Al Maha Island, Lusail Winter Wonderland, Lusail Boulevard, Qetaifan Island North, Corinthia Yacht Club, and West Walk. These sites accommodate restaurants, brands, and other recreational activities.

It pointed out that the new Qatar 2022 hotels and resorts include: Fuwairit Kite Beach, The St. Regis Marsa Arabia Island, Rixos Gulf Hotel Doha, The Outpost Al Barari, Rixos Qetaifan Island North Doha, Waldorf Astoria Doha West Bay, Waldorf Astoria Doha Lusail, The Ned Doha, The Chedi Katara Hotel & Resort, Raffles Doha and Fairmont Doha, Rosewood Doha, Katara Hills LXR Hotels, and DoubleTree by Hilton Doha Downtown.

The new landmarks and attractions that were launched last year came as part of a series of tourism projects to meet the needs of fans and visitors to Qatar from places of entertainment, housing, and shopping, in addition to the availability of food and beverage outlets.

In December United Development Company (UDC) stated that with the World Cup last-16 round and the quarterfinals over, UDC’s exciting line-up of events and visitor attractions taking place at The Pearl Island, have achieved an outstanding success among tourists, fans and local visitors, with the number of people attending each day reaching full capacity, making The Pearl Island one of the leading visitor hotspots and the ultimate fan destination so far during the World Cup.

The significant visitor influx to The Pearl Island reflects UDC’s organisational success, whether in terms of world class entertainment content suitable for visitors of all ages and walks of life, or in terms of the smooth arrangements to accommodate hundreds of thousands of visitors and vehicles with total ease, in collaboration with the General Directorate of Traffic, whose support was crucial to the successful management of traffic without any major incidents occurring.

Despite The Pearl Island reaching its maximum visitor capacity, people were able to move smoothly, comfortably, and easily from one activity or attraction to another, as was planned by UDC, which explains why the peak attendance numbers were consistently high on a daily basis, not to forget the major role played by the Metrolink and Pearl Bus complimentary services, in easing transportation in and out as well as within The Pearl Island.

While many events were taking place concurrently in different locations at The Pearl Island, each of them succeeded in attracting big crowds, starting with Qarnevale Quartier’s 10 days of dazzling masquerade-style festival, organized in collaboration with “Festi Group”, the founder and organizer of the famous Venice Carnival, moving to Medinafest which concluded on December 8th brimming with international street performances inspired by European, American, Asian and African heritage, up to Arabia Experience which reflects Qatari culture through arts and hospitality tents and marketplace, and Porto Beat, a dazzling DJ and visual effects experience that spreads positive festive vibes, the latter two continuing until December 18th,  similarly to the live matches screening on Porto Arabia’s Amphitheater. 

New attractions announced by UDC for the World Cup were equally popular among visitors, including Duck Lake, Beach Centrale, The Pearl Fountain, and The Pearl Photo Walk, not to forget the opening of the spectacular KAI restaurant from London, at Corinthia Yacht Club at The Pearl Island, the inauguration of Corinthia Golf Club in Gewan Island, and the big variety of restaurants and retail shops that were filled with tourists all throughout the day, since the launch of UDC’s World Cup events at The Pearl Island.

In June United Development Company (UDC), a leading Qatari public shareholding company and the master developer of The Pearl and Gewan Islands, announced that it is approaching full occupancy of its 1,123 residences at The Pearl Island, which are currently 93 percent occupied or reserved for upcoming lease.

UDC’s residential leasing portfolio covers various units in Porto Arabia, Medina Centrale and Qanat Quartier in addition to Al Mutahidah Towers in Viva Bahriya and Giardino Gardens villa compound where 73 out of a total 80 villas were leased since the compound inauguration in September 2021.

While overall residential occupancy at The Pearl Island recorded an all-time high with 52,000 current residents, UDC reported a significant increase in demand for rental units this year, in the run-up to World Cup 2022, where UDC allocated 318 units to the Supreme Committee in Medina Centrale and launched 58 fully furnished and all-inclusive apartments for short or long-term rental at The Pearl Island with World Cup visitors’ convenience in mind.

Retail business also picked up at the Island where 17 new stores launched their operations so far in 2022 with 31 more openings anticipated by year-end, bringing the total number of operational retail and F&B brands to 360 covering around 158,000 sqm.

UDC forecasted the influx of 19 million vehicles to The Pearl Island in 2022, a significant 13 percent increase from 2021 figures. This reflects the Island’s leading position as a popular lifestyle, retail, and leisure destination among Qatar residents as well as foreign visitors and tourists.

Real estate market

According to Cushman and Wakefield, an international real estate consultancy, the hospitality real estate market in Qatar has been impacted significantly by the World Cup. The tournament in November and December 2022 has been the catalyst for the unprecedented development of new hotels, with thousands of new rooms being added to the market in the second half of the year (H2). Overall performance in the sector in 2022 reflects the increase in visitor numbers since the COVID-affected period of 2020 and 2021. 

It noted that Qatar will receive an unprecedented opportunity to showcase the country to a global audience. World Cups in Germany, Russia, and South Africa boosted their profile and reputation as tourist destinations in the three years after the event. Each country noted an uplift in visitor numbers in the three years post-event. There was 22 percent to 27 percent growth in Revenue Per Available room (RevPAR) post World Cup. Hotels that benefitted most were 7-10 years old. Qatar Airways’ widespread network, coupled with a vastly increased profile for Qatar post-2022 should help to increase the percentage of stop-over visits with transit passengers, it added.

Cushman & Wakefield’s Qatar third quarter report noted in August 2022, the supply of hotel keys in Qatar reached 30,847, of which 75 percent are hotel rooms and 25 percent are hotel apartments. Of the available hotel rooms, 65 percent are classed as 5-star with less than 10 percent classed as 3-star or below. As the FIFA World Cup in November 2022 approaches, new supply is expected to accelerate. 

Hotels and serviced apartments are expected to deliver approximately 37,000 keys, or 45,000 rooms in time for the World Cup. Demand for World Cup accommodation will dominate the market in the coming months. The Supreme Committee for Delivery and Legacy has reserved 80 percent of overall hotel supply for the tournament; however, any unrequired supply is expected to be returned to hotels in early October, freeing up rooms for the wider market, the report added. 

Over the first half of 2022, Qatar witnessed a 19 percent increase in the number of international arrivals compared to full year 2021 and is expecting an even stronger second half.

The State of Qatar will spend $45bn to expand the tourism sector by 2030 as part of the National Tourism Sector Strategy 2030 according to recent research by Knight Frank, an independent UK real estate consultancy in Doha.

In November, it stated that Qatar’s hospitality market is expected to grow by around 12 percent to reach $54.6bn by 2030. Seventy percent of the existing supply is dominated by four and five-star hotels while 94 percent of the country’s future supply will be in Doha, according to the research.

The report revealed that the nuamber of hotel rooms in Qatar would increase by around 89 percent to over 56,000 by 2025.

The consultancy also noted that building the planned hotel rooms would cost the state around $7bn and it would be carried out across five star rooms estimated to cost $4bn, four-star rooms $1bn, serviced apartments $703m and three-star rooms and below accommodations $571m.

Qatar’s top six hotel operators are Marriot, Accor, Hilton, IHG, Rotana, Wyndham accounting for around 10,954 rooms in the hospitality sector of Qatar.