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The hospitality industry in the GCC is expected to hit $35.9 billion by 2018

GCC hospitality industry to reach $35.9bn by 2018

DUBAI, September 25, 2014

The hospitality industry in the GCC countries is expected to grow from $22.8 billion (Dh83.7 billion) in 2013 to $35.9 billion by 2018, at an annual rate of 9.5 per cent, according to a new report by investment bank Alpen Capital.

The UAE's hospitality industry is expected to grow at a compound annual growth rate (CAGR) of 10 per cent between 2013 and 2018, said a report in the Gulf News.

“The growth of the industry in the region will be fuelled by the shift in global activity from the West to the East, a rise in leisure travel, higher demand for serviced apartments, a shift towards budget travel and a quicker construction pipeline,” said Sanjay Bhatia, managing director of Alpen Capital in Qatar.

The sector's growth is also expected to be driven by international tourist arrivals, especially those from Asia, and a stronger Mice (meetings, incentives, conferences and exhibitions) segment, among others, according to Sameena Ahmad, managing director of Alpen Capital in the Middle East.

The GCC has made major investments in expanding its airports. For instance, in Dubai, a Dh117.5 billion ($31.9 billion) expansion of the Al Maktoum International Airport at Dubai World Central is expected to begin by the end of the year. The airport will be able to serve 120 million passengers within six to eight years.

Airports across the region are expected to handle as many as 250 million passengers by 2020, the report mentioned.

However, as GCC countries boost their hotel room capacity in the run up to major events there, they face the challenge of sustaining demand after those events take place, Bhatia warned. – TradeArabia News Service




Tags: hospitality | GCC |

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