Ongoing projects in the GCC will form the backbone of the regional hospitality industry in the coming years, as the governments of the Gulf countries gradually move towards diversifying their revenue base and reducing their dependence on hydrocarbons.
The total estimated value of 1,153 active projects in the GCC’s hospitality industry exceeded $148.4 billion in the first quarter of 2017, according to BNC Intelligence. In addition, 62 projects with a combined value of Dh9.1 billion, were added to the list in the first quarter of 2017.
New data also found that the GCC hospitality sector constitutesÊ7 per cent of all active projects in the GCC. Six hospitality projects with a combined estimated value of around $390.5 million were completed during March; and around 12 hospitality projects with a combined estimated value of $945 million were moved to the construction phase from other stages during the month.
“With the upcoming mega events such as Expo 2020 in Dubai and the World Cup in Qatar, the GCC governments are obviously preparing themselves for major global events that require additional hotel and tourism facilities that also will help them diversify revenue sources,” said Avin Gidwani, Chief Executive Officer of BNC Network.
“With the ongoing economic integration process and as the GCC countries prepare to develop a common market and once the physical infrastructure, such as the GCC rail networks, connecting major cities, regional tourism sector will get a major boost in the years to come. People from one city will travel to the other for overnight stay and return without having to cross the border formalities, such as the European Union. The region is preparing for such heavy tourism traffic.Ó
An estimated 62 projects with combined estimated value of over $2.5 billion were launched in the first quarter of 2017, BNC Intelligence shows. In March, there was an increase ofÊ1 per cent in terms of number as well as in dollar value in the GCC’s hospitality projects as compared to February 2017.
Hospitality groups are taking note of the potential in the region, especially in the run up to the Expo 2020 event. Driven by an active pipeline of new openings, combined with an enhanced focus on bringing mid-market offerings to the region, is looking ahead to the opening of 10 new hotels in the region by the end of 2017, which will add 1,600 keys to its current room inventory, exceeding the 11,000 milestone. In 2016 alone, Louvre launched 12 properties in key markets including the UAE, Qatar, and Saudi Arabia; and expects to open no less than 10 hotels per year leading up to 2020 and beyond.
“Owing to its strategic geographic location as a trade corridor that connects the East and West, the region holds tremendous potential for increased business and leisure-related travel and tourism prospects from around the globe,Ó said Amine E. Moukarzel, President of Louvre Hotels Group for the Mena region. ÒTherefore, we see the region as one of our strongest growth markets that will continue to play a significant role in our expansion plans in the years to come.Ó
By Rohma Sadaqat from The Khaleej Times
