Qatar could face a considerable challenge of overcapacity with the hotels it builds for the 2022 World Cup finals.

A report by Samba Financial Group said the number of hotel rooms required by FIFA for the showpiece is 60,000 – a significant increase on the country’s 13,551 that Qatar Tourism Authority recorded at the end of 2013.

The study cited the problems faced by South Africa in 2010, with many cities facing an oversupply of luxury hotels after the tournament finished.

“These rooms (in Qatar) achieved an average occupancy rate of 65 percent over 2013 by attracting 1.2 million visitors. In comparison, Dubai had 84,534 rooms at the end of 2013, attracting 11 million visitors and achieving an occupancy rate of 82 percent,” Samba’s report said.

“Although the recent growth of the tourism industry in Qatar has been robust, it will be difficult for the country to achieve the level of visitor growth which will garner enough demand to support a 400 percent expansion in the number of hotel rooms in eight years," it continued.

“In fact, it will require an annual average compound growth rate of 27.2 percent until 2022. Further, the latest statistics show that average revenue per room in Doha is down to $222 in March from $261 in 2013 despite increasing demand.”

However, while Qatar may struggle to fill its hotel rooms, the report said the level of investment in hotels in relation to overall infrastructure “is minimal”.

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QNE

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