What will drive the post-pandemic recovery for tourism in Qatar?

Travel and tourism was one of the hardest-hit sectors globally in 2020 and early 2021 as the Covid-19 pandemic swept around the world, and the situation in Qatar was no different. However, reflecting the gains made in the tourism industry in the years leading up to the health crisis, the opening months of 2020 saw a strong performance in terms of arrivals – so much so that when travel began to normalise in 2021, arrivals for the first three quarters were still higher in 2020 than in 2021.

Despite subdued sector activity for most of 2020 and 2021, Qatar has been gearing up for what is expected to be a banner year for tourism in 2022 – starting with a full cruise schedule at Doha Port for the 2021/22 season. Construction continued at hotel sites to welcome visitors for the 2022 FIFA World Cup and beyond, while Qatar Museums (QM) carried out restoration works at the Barzan Towers to offer another heritage site for travellers.

Oversight

Qatar Tourism is the leading government agency responsible for the sector. Its main functions are strategy planning and policy development; promoting investment opportunities in the tourism sector; destination marketing and promoting leisure and business events; enhancing the visitor experience; and handling regulatory functions such as granting licences. The agency has headline goals of attracting 6m visitors annually by 2030 and raising tourism’s share of GDP to 12% by the same year. Representative agencies have been established in key markets to help reach these targets – namely the UK, the US, France, Italy, Germany, Austria, Switzerland, China, Russia and India – while sales managers have been appointed for Australia and Turkey.

The new Qatar Tourism website was unveiled in 2021 and is available in six languages. It acts as a one-stop shop for trip planning by offering information on airport access and visas, getting around the country and accommodation options. It lists visitor attractions categorised by interest – such as arts, sport and beaches – and how a visitor is travelling, for example with family or on a weekend getaway. It also posts the country’s event calendar. A Visit Qatar mobile app was launched alongside the website, and is marketed as a personalised travel companion that helps visitors find activities that align with their personal interests and travel style.

In October 2021 the Cabinet was reshuffled by Amiri decree, dividing the Ministry of Culture and Sports (MCS) into the Ministry of Sports and Youth (MSY), and the Ministry of Culture (MoC). The MSY oversees the delivery of major sporting events, encourages sport among the population and facilitates youth development through targeted programmes, while the MoC cultivates a rich cultural scene for residents and tourists. It works closely with QM, the body that manages museums, galleries, public art displays, heritage sites, and certain parks, playgrounds and libraries. The organisation also works to preserve Qatar’s cultural heritage, and share its art and culture in international markets.

Key Metrics

Tourism was severely disrupted in Qatar and around the world at the onset of the pandemic in 2020. That year the sector got off to a strong start, with arrivals in January up 41% yearon-year (y-o-y) to 277,000 and those for February up 23% y-o-y to 221,000, according Qatar Tourism’s 2020 annual report. Arrivals dropped to 48,000 the following month when the country closed its borders, and stood at just 500 and 300 in April and May, respectively. This figure grew steadily from June onwards, reaching 9000 in December to a total of 581,600 for the year. Despite the rebound in the later months of the year, the annual report estimated an overall annual decline of 73% for arrivals.

Qatar’s borders remained largely closed until July 12, 2021. Arrivals in the first three quarters of that year were down 52% over the same period in 2020, due largely to the strong performance in the opening months of 2020, although arrivals in 2021 outpaced those in 2020 for April through September. When Qatar reopened, arrival numbers jumped from 38,000 in July to 62,000 in August and 67,000 in September. This put the total for the first nine months at 167,000, according to Qatar Tourism’s most recent quarterly report.

In another key performance indicator, the total contribution of travel and tourism to GDP in Qatar fell from 10.4% in 2019 – when it was valued at QR65.1bn ($17.9bn) – to 7.5% in 2020, or QR42.7bn ($11.7bn), according to the latest report by the World Travel & Tourism Council (WTTC). International visitor spending declined from QR47.8bn ($13.1bn) to QR32.1bn ($8.8bn) over the same period, while domestic visitor spending dropped from QR11.6bn ($3.2bn) to QR6.9bn ($1.9bn).

Source Markets

The top-five source markets in the first nine months of 2021 were India (101,000 arrivals), Saudi Arabia (32,000), Oman (11,000), Pakistan (10,000) and Kuwait (7000). The UAE was also a key source of tourists, with 5000 arrivals. While the number of arrivals from Oman, Pakistan and Kuwait were down y-o-y, arrivals from the UAE and Saudi Arabia experienced significant growth, up 208% and 193%, respectively. This was fuelled by the January 2021 lifting of the economic blockade originally imposed in 2017 by some of Qatar’s neighbours. The authorities hope that the resumption of travel and trade between countries in the region will drive further tourism growth in 2022 and beyond.

Qatar aims to return the sector to the upward trajectory seen in the years leading up to the pandemic: in 2019, for example, arrivals grew by 17% to 2.1m. That year Asia and Oceania contributed 813,000 arrivals, Europe 681,000, the GCC 233,000, the Americas 205,000, other Arab countries 155,000 and Africa 48,600. That year’s performance was facilitated by Qatar’s liberal visa rules, which allowed citizens of more than 95 countries to enter the country visa-free as of the end of 2021, usually for a stay of up to 90 days. Indeed, Qatar is the most open country in the Middle East and ranked eighth globally on the UN World Tourism Organisation’s most recent Visa Openness Index, issued in 2018.

Hotels

Fewer visitors in 2020 led to fewer hotel stays, although Doha’s performance was significantly better than other major tourist cities. Indeed, that year Doha had the sixth-highest occupancy rate among 37 cities studied by hotel management analytics firm Smith Travel Research, as well as the smallest decline in revenue per available room (RevPAR), at 18%. Even so, occupancy rates fell from 66% in 2019 to 54% in 2020. That year occupancy recovered to above 50% in August-December, reaching 59% at the end of the year and helping offset early losses. In September 2021 occupancy was 62% year-to-date and RevPAR was up 29% y-o-y. According to the most recent data from Qatar Tourism, in 2019 the average length of stay was 3.7 nights.

A report by global real estate consultancy Colliers released in November 2021 found that Doha’s expected occupancy rate for 2022 is 73%. This forecast was the fifth highest of the 24 markets across nine countries covered in the study. The report noted that demand for hotels was strong in Doha in the first 10 months of 2021, a trend that was expected to continue the following year, fuelled by visitors for the 2022 FIFA World Cup.

World Cup Stays

Indeed, the authorities have been working to ensure that there is sufficient accommodation for visitors for the event. Supply stood at 27,261 rooms at the end of 2019, spread across 130 properties. At the time, an additional 21,577 rooms at hotels and hotel apartments were in the pipeline. This total rose to 33,208 rooms as of end-2020, split between 23,560 rooms at hotels and 9648 rooms at hotel apartments. The latest data from Qatar Tourism showed the total number of keys, as opposed to rooms, as of September 2021 at 29,222 – up from 28,201 keys in September 2020 and 28,300 at end-2020. The composition of keys in September 2021 was 46.2% five-star hotels; 20.9% four-star hotels; 6.4% one-, two- and threestar hotels; and 26.5% standard and deluxe hotel apartments. These numbers can differ, as a suite, for example, may have one key and multiple rooms.

Construction was under way at more than two dozen hotel sites as of late 2021. Estimates from Qatar Tourism indicate that the country expects to have fewer than 50,000 hotel rooms ready for the World Cup – the majority of which are to be reserved for players and officials. To regulate the hotel market, officials have not allowed hotels to accept individual reservations for the majority of November and December, and room rates at most establishments have been capped for those months.

Meanwhile, various accommodation alternatives have been put forward to house the expected influx of fans. Two docked cruise ships and a new shared apartment complex called Madinatna located 25 km from Doha’s centre will provide another 64,000 rooms, largely managed by global hotel brand Accor. “The challenge for the hospitality sector will be mitigating the likely downward pressure on room rates after the 2022 FIFA World Cup,” Andrew Humphries, acting CEO of hotel developer and operator Katara Hospitality, told OBG. “It will be important to focus on Qatar marketing itself as a global tourism destination in order for hotels to maintain high levels of occupancy in the years after 2022.”

Cruise Tourism

The WTTC shows 66% of total travel and tourism spending in 2020 stemmed from leisure trips and 34% from business trips; the breakdown was 61% and 39%, respectively, in 2019. The value of spending in both categories fell in 2020, from $9.9bn to $7bn for leisure and from $6.4bn to $3.7bn for business, due to the pandemic.

An important component of leisure travel is cruise tourism, which supplies a large share of arrivals from non-Gulf countries. In the fourth quarter of 2019 – the start of the 2019/20 cruise season – Qatar welcomed its first turnaround passengers: travellers who began or ended their cruise in the country. This was particularly significant as many cruise passengers like to spend a few extra days exploring the city where their ship starts for finishes its journey. For the 2019 calendar year 57 cruise ships made port calls in Doha, bringing in around 127,500 passengers – up 98% from the 64,400 passengers in 2018. The majority of cruise passengers that year were European, with the largest percentage gains by nationality coming from France (up 238% from 2018), Italy (220%) and Russia (210%).

While the 2020/21 cruise season was cancelled due to border closures and travel restrictions amid the pandemic, Qatar Tourism and Mwani Qatar, the Qatari ports management company, expected its busiest season to date in 2021/22. At least 78 cruise ships were scheduled to dock for the season, which runs from December through April, as of early December 2021. The season’s first ship, carrying some 4600 passengers, arrived in Doha during the early days of that month. The new dedicated passenger terminal at Doha Port should support growth in the segment in the years ahead.

Qatar Travel Mart

The Doha Exhibition and Convention Centre (DECC) is the leading venue for meetings, incentives, conferences and exhibitions (MICE) in the country. It is managed by the Qatar Business Events Corporation, which is an arm of Qatar Tourism. One event hosted at the DECC in 2021 was the inaugural Qatar Travel Mart in November. The three-day event saw 150 companies from 34 countries showcase their offerings related to travel, tourism and hospitality. In addition, panel discussions were held with leaders of global tourism organisations on topics including changes in consumer behaviour during the pandemic, and the recruitment and retention of employees in tourism and hospitality. Some 7000 visitors attended from various tourism segments, including luxury, MICE, medical, sport and culture.

Culture

Another segment that Qatar has channelled considerable resources into is culture tourism. As of 2021 QM operated three museums – the 40,000-sq-metre National Museum of Qatar, which opened in November 2019; the Arab Museum of Modern Art; and the Museum of Islamic Art – and three art galleries. QM’s remit also includes developing heritage sites through archaeological excavation and managing them as tourism sites.

The ancient town of Al Zubarah is Qatar’s largest heritage site. The town dates back to the 1760s, when it was an active pearl-fishing and trading area into the 20th century. The town’s fort was built in 1938. Al Zubarah was classified as a conservation zone in 2009 and named a UNESCO World Heritage site in 2013. QM’s latest project is the restoration of the Barzan Towers in Umm Salal Mohammed village, where a visitor centre is set to open in 2022.

Sport

The MSY is responsible for organising and hosting sporting events in the country, as well as encouraging sport and exercise among the population. The Qatar Olympic Committee, meanwhile, is involved at the elite level. The government views sport as a way to facilitate cross-cultural understanding and dialogue, and regards the hosting of sporting events as a way to set Qatar apart in the Gulf and wider MENA region. Recent high-profile events hosted in the country include the 2019 World Athletics Championships and the FIFA Arab Cup in December 2021. The latter event, in which 16 teams competed, was the first to be held under the FIFA banner in the run-up to Qatar hosting the 2022 FIFA World Cup. In 2023 Qatar is set to welcome the World Aquatics Championships. “Although there is strong competition in the region, Qatar is well placed to be a leader in tourism,” Humphries told OBG, citing the country’s focus on culture and sport in efforts to develop its tourism and hospitality offerings. “Government entities, hotel operators and other players need to continue to work together to consolidate Qatar’s position as a destination.”

Beyond fostering cross-cultural ties, there is also economic potential in the sport industry. “The 2022 FIFA World Cup could lead to the creation of a range of new opportunities in the sporting segment,” Sheikha Alanoud bint Hamad Al Thani, deputy CEO and chief business officer of the Qatar Financial Centre (QFC), told OBG. “For example, the QFC is seeking to attract sport hosting, management and visualisation companies, not only to support the delivery of the World Cup, but also to generate value and attract future sports events.”

Sport has become increasingly popular, both in terms of viewing and participation. There were 26,000 athletes registered at sporting federations in Qatar during the 2019/20 academic year, according to the latest figures released by the Planning and Statistics Authority, up from 19,600 in 2018/19. The top-seven sports that year were taekwondo and judo, swimming, football, volleyball, cricket, handball and athletics. Cultivating a strong sporting culture begins at the youth level, and the investment at Qatar’s schools reflect this: of the 207 public schools across the country in 2020/21, nearly all had a gymnasium, basketball court and volleyball court (see Education & Research chapter).

Aspire

Qatar also has a specialised, international sport school named Aspire Academy, where youth from Qatar and beyond are scouted to develop their athletic abilities while receiving a high school education. In the 2018/19 school year, the latest for which data is available, there were 18 classrooms split evenly between preparatory and secondary schooling, where 289 student athletes aged 12 to 18 received an education and trained in one of 10 different sports. Many graduates from Aspire Academy have gone on to represent Qatar in international competitions, including the Olympics.

The academy is housed in the 2.5-sq-km Aspire Zone, which also includes a stadium, aquatic facilities and a warm-up track. In addition to fostering wellness, the zone is key to developing the country’s sport medicine tourism. The zone is also home Aspetar Orthopaedic and Sports Medicine Hospital, the first of its kind in the Gulf. The centre provides sports medicine, orthopaedic surgery and rehabilitation services, among others, and has three centres of excellence. It has provided care to over 23,000 athletes since its establishment in 2007, and has received recognition from both FIFA and the International Olympic Committee.“ Qatar offers high potential as an international sport medicine destination,” Jassim bin Mohamed bin Hamad Al Thani, vice-chairman of Mohamed bin Hamad Holding, told OBG. “The country is home to high-quality facilities, and many elite athletes come from around the world to benefit from our specialist care. The government has spent a lot on associated infrastructure, and, as such, the segment is well positioned for growth.”

Outlook

The prospects for the tourism industry are positive, as Qatar aims to return to the level of growth seen in 2019 and early 2020. The Qatar Travel Mart proved to be a jump-start after two years of subdued performance, and should help boost interest from key markets in the coming years. A promising cruise season is set to bring large numbers of European and North American visitors, while Qatar is also expected to benefit from a rebound in arrivals from key source markets closer to home. The 2022 FIFA World Cup will be the culmination of a decade’s worth of preparation, and many firsttime visitors will be able to experience the event, as well as a variety of cultural and niche offerings. As the competition draws near, private players and government officials are looking to capitalise on the event to facilitate growth in the tourism and sporting industries in the years to come (see analysis).