GCC set for a boost in tourism but 2022 World Cup doubts increase

GCC tourism is likely to recover with boosts coming from Expo 2020 in Dubai, but questions remain over Qatar’s viability to hold the 2022 Fifa World Cup.

In its recent report, Alphen Capital said the GCC hospitality market would probably grow at 7.2 per cent over the next four years.

But reports that Qatar used a secret “black operations” propaganda campaign to undermine rival bids in breach of Fifa rules might change this.

Governments in the six-bloc nation have been making significant investments into the development of tourism, such as new airport extensions.

Large tourism events expected in the region will bring steady occupancy to hotel rooms to meet the anticipated demand.

The GCC has infrastructure and hotel projects scheduled to open through 2022 to accommodate future tourist inflow.

In Saudi Arabia, projects, such as the Makkah-Madinah train, will bring more religious tourists.

Countries in the region will also benefit from easing visa regulations by exempting transit passengers from paying a fee for short stays.

But VAT and the Qatar dispute, where Saudi Arabia, UAE and Bahrain cut ties with Doha over its support for terrorism, will prove challenging to growth.

The report said the tax could impact on travellers on a budget. But creating a refund system for non-residents to claim VAT back would help remedy that.