Long term infrastructure spending and event-driven investments relevant to Expo 2020 and 2022 FIFA World Cup Qatar is set to boost the Gulf hospitality sector, expert says.
"Owing to key source market trends, increasing visitor demand for longer length of stay and value accommodation, there is a growing demand for mid-scale hotels and service apartments in the Middle East,” said Ganesh Babu, Director - India & Middle East, IDE.
With almost 501 hotels, totalling 144,321 rooms in various stages of development pipeline, Babu predicts that demand growth in the hospitality market will catch up with supply volume.
"Foreign real estate developers have infused billions of dollars into countries such as Qatar, the UAE, Saudi Arabia and Oman,” he said.
“We believe the future of hospitality in the region is promising as the sector is becoming more mature and it is witnessing long term infrastructure spending commitments and event-driven investments such Expo 2020 and 2022 FIFA World Cup Qatar.
"With macroeconomic currency fluctuations, and low oil prices all impacting performance levels, the last two years were challenging for the hotel industry. However, with the infrastructure in the region still going strong, we predict that 2017 and 2018 will be two years of significant change for the industry as the dust settles," he added.
With the market gaining traction owing to the long term infrastructure spending commitments and event-driven investments, it is crucial for the Hoteliers and solution providers alike to capitalise on a business platform like this summit.
Investor confidence has been lifted in the Middle Eastern hotel sector with increasing tourist amd business traveller numbers, he concluded.