Qatar hotels aim to buck global downturn

Qatar has traditionally kept a relatively low profile as a tourist destination, preferring to focus on business travellers and avoid direct competition for leisure tourists with the likes of Dubai.

Statistics show that tourist arrivals in Qatar touched just 780,000 in 2007, compared with 6.44 million for Dubai in the same year.

However, with an economy that is expected to grow 4.5% this year - the fastest in the region - Qatar's tourism sector is well-positioned to weather the economic downturn, especially given the predominance of business tourism in the country.

Qatar has some of the most expensive hotel rooms in the world, reflecting the high influx of business tourists that the country receives. Room rates in Doha averaged $292 per night in 2008, placing it number two in the region behind Dubai, which averaged $300 per night, according to the latest data compiled by STR Global, a US-based research firm.

Not surprisingly, the vast majority of hotels in country are in the four and five-star category, with five-star hotels outnumbering three-star hotels by almost three to one.

However, despite the high cost of rooms, occupancy levels were relatively high in 2008. Average occupancy throughout the country last year was 61% in five-star hotels, 64% in four-star hotels, and 66% in three-star hotels, according to official figures.

Tourism push

In line with the country's efforts to boost its non-energy sectors, Qatar has announced ambitious plans for its tourism industry and launched a number of projects to boost visitor traffic.

The government says it is now targeting a 20% annual rise in tourism over the next five years, and has pledged to invest $17bn to help boost hotel capacity by 400% by 2012.

The government hopes to attract 1.4 million tourists by 2010, up from 780,000 tourists in 2007. It aims to meet this goal partly by attracting passengers travelling through its airport and luring them to stay an extra 48 hours in the country past their initial scheduled time.

The government aims to boost traffic through Qatar by building a new $11bn airport that will be capable of handling about 50 million passengers a year when it is fully completed in 2015.

The airport will serve as the home of Qatar Airways, which plays another key role in the country's tourism industry. The airline, which flew about 10 million passengers in the 2007-2008 financial year, currently flies to some 83 destinations across the world using a fleet of 65 aircraft. By 2012, the airline plans to boost its fleet to 110 aircraft, and increase its global destinations to 120.

Qatar is also taking steps to boost its image as a tourist destination, and was recently honoured for its efforts by The New York Times, which named the country a cultural destination of the year for 2009.

The Times noted the 'dazzling' collection at the recently opened Museum of Islamic Art, which was designed by I.M. Pei. It also touted the flurry of new contemporary art galleries in Doha's historic souk, the Souq Waqif, the creation of a national symphony orchestra, and the recent announcement that a Tribeca Film Festival Doha is coming to town in November.

The meetings and exhibitions market is another key element of Qatar's tourism, with some 25 exhibitions already booked this year at the Qatar International Exhibition Centre.

Looking ahead, construction is underway on the 112-storey Qatar Exhibition Centre located in the Al-Dafna area in Doha. Once completed in 2012, the tower will offer 50,000 square metres of exhibition space, along with offices, restaurants and a hotel.

Another convention centre, capable of seating 2,500 in its auditorium and another 500 in a theatre, is also being built in Education City to meet the rising demand for conference space.

The country's tourism strategy also includes the construction of a whopping 108 hotels or hotel apartments in Doha, most of which are in the four and five star category, according to official figures. Overall, Qatar hopes to have a total of up to 29,000 luxury rooms available by 2012, and 80,000 hotel rooms in various ranges on offer by 2016.

'No downturn yet'

One hotel that remains optimistic in the face of the economic crisis is the Doha Marriott, which saw occupancy rise about 10% in 2008 and expects the same rise this year.

'So far we have not seen a major downturn,' said Belal Al Kadry, the director of sales and marketing at the hotel. 'We had a very strong month in January, and we have not had any cancellations. But you can see people being a little more cautious with their money now. They are not overdoing it.'

He said the hotel has not done anything out of the ordinary to lure visitors, noting that 'you must always have an offer and a package for your hotel regardless of whether your property is in a busy season or not'.

'We have also made sure that the hotel is not overpriced, or underpriced, compared to the market,' he said. About 85% of the hotel's trade is business or government-related travel, and most of the leisure tourists tend to be in the luxury category.

Al Kadry believes that Qatar's strong economy will ensure that business travel will remain strong for the foreseeable future despite the global financial woes. 'We will be very cautious with our forecasts, and we will have to keep a close eye on the situation. But I haven't seen a company that has negatively forecast their hotel in 2009,' he said.

See also:
Budget hotels see opportunity in Dubai market
Dubai hotels seek to lure guests with discounts