Waiting lounge • Chapter summary
Qatar was no exception to the dramatic decrease in tourism caused by COVID-19. The country’s strategic location at the crossroads between Europe, Asia, and Africa has become, however, one of its main tourism drivers, the GCC nation enjoying the benefits of long stopovers. And despite the interruption caused by COVID-19, investments to bolster the sector haven’t slowed.
In the run up to the 2022 FIFA World Cup, Katara Hospitality and Accor announced an agreement to open a dual-branded Fairmont and Raffles development in Lusail City. In January 2021, the Ministry of Commerce and Industry (MoCI), along with the Qatar National Tourism Council (QNTC) unveiled plans to develop three beach resorts in Qatar under the PPP model. Other hotels in the pipeline include the Chedi Katara Hotel & Resort by GHM Hotels, while Banyan Tree Doha, Pullman Doha West Bay, The Plaza Doha by Anantara, and Jouri, A Murwab Hotel, are set to open in 2021. Additionally, the landmark Hilton Salwa Beach Resort & Villas started operations in 1Q2021.
At this pace, investments in the Qatari tourism sector are expected to reach USD4 billion, while tourism’s share in the country’s GDP will reach USD36.57 billion by 2028, according to a report by Ezdan, a holding with major investments in Qatar’s tourism sector. As per the 2030 strategy planned by QNTC, Qatar aims to attract 5.6 million tourists by 2023, the year following the World Cup. This number stood at 2.1 million in 2019 and saw a dramatic drop over 2020.
Nevertheless, it looks like Qatar has some winds in its sails in the long run. Not only will the resumption of international travel post COVID-19 bring back tourists, but the recent entente and lifting of a blockade by neighboring countries Saudi Arabia, the UAE, and Bahrain, plus Egypt, will also help boost visitor numbers. These countries were previously among the top source markets of tourists to Qatar, and as travel measures relax at a faster pace among GCC countries, their nationals have the chance to re-visit Qatar, see what is new, and start making plans for the World Cup.
Similarly, the retail sector in Qatar has been put under extreme pressure due to the blockade and COVID-19. However, retail businesses are gaining optimism as these two issues are solved. There are expectations from retailers that the general falling turnover trend, which started in 2017 after the implementation of the blockade, will be reversed over the course of 2021. The total gross leasable area stood at 1.89 million in 2020 and is expected to increase in 2021 as new malls are projected to open their doors this year, including the stunning Place Vendôme, a multi-billion-riyal, mixed-use project featuring a mall with 600 retail outlets.