Qatar’s tourism sector forecast to...

Experts predict visitor numbers of 4.2m in 2024 and 5% growth in 2025

Analysts at ValuStrat report that Qatar has seen 3.9 million visitors so far in 2024 and will receive nearly 4.2 million by the end of this year.

‘Sustained momentum’ is predicted for the country's tourism industry, as the figure is expected to grow by 5% in the coming year, say researchers.

Anum Hassan, Head of Research at ValuStrat in Qatar, said the hospitality sector continued to thrive, largely due to the legacy impact of FIFA 2022, which saw an uptick in local and international events.

“Tourism from GCC countries played a pivotal role, contributing 44% of total visitors, a 43% YoY increase,” she added. “Cooler weather during Q3 also bolstered tourism activity, driving higher demand for accommodations.”

Hassan also noted that the first three quarters of 2024 saw several noteworthy retail developments that attracted tourists and investors. Newly opened malls include Velero Mall in Lusail Marina, Crystal Walkway in Gewan Island at The Pearl and Baraha Town in Bu Hamour.

Significant brands were among the retail additions during the same period, including Tesla, Alo Yoga, Pret A Manger, Pickl, Raising Cane’s, WHSmith Curiosity, New Balance and Golden Apple.

Hasan also noted that Baraha’s operational retail spaces and residential units were now ready for occupancy. The a residential and commercial development aimed at expats features a health club and a supermarket.

Underlining the primary reasons behind the decline of some markets in the third quarter of 2024, Anthony Fernando, ValuStrat's Director of Valuations in Qatar, said: “This is mainly due to reduced investor confidence, which results in an oversupply of some sectors post-FIFA, as well as the increased interest rates slowing down the rate of borrowing and transacting.”

However, the rate of decline is beginning to slow down as the central bank plans to introduce new policies in 2025 to ease interest rates.

Meanwhile, continued falls in residential rents have resulted in occupancy shifts from secondary to primary residential locations. These shifts may yet lead to a slow rise in rents in primary residential zones in the coming quarters of 2024 and 2025.

"Given the increased footfall in retail zones during the last quarter, we may also see increasing rents in the retail sector across the fourth quarter and the first quarter of 2025, especially in organised retail," Fernando said.

For more information, visit valustrat.com

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