Qatari tourism sector to grow by 5% in 2025- ValuStrat

QATAR – According to analysts at ValuStrat, a leading international market research consultant in the Middle East, the tourism sector in Qatar is projected to experience a period of sustained momentum in 2025 and is anticipated to grow by 5% in 2025.

Qatar has welcomed 3.9 million visitors in 2024 so far, with projections indicating nearly 4.2 million by year-end, according to analysts at ValuStrat.

Speaking to The Peninsula, Anum Hassan, Head of Research in Qatar at ValuStrat, noted that the hospitality sector remains robust due to the enduring legacy of FIFA 2022 and an increase in both local and international events.

She highlighted that tourism from GCC countries accounted for 44% of visitors, marking a 43% year-on-year growth. Cooler weather during the third quarter also spurred tourism, boosting demand for accommodations.

Hassan emphasized significant retail developments in the first three quarters of 2024, which have drawn both tourists and investors.

Key additions include Velero Mall in Lusail Marina, Crystal Walkway on Gewan Island at The Pearl, and Baraha Town in Bu Hamour.

Major international brands such as Tesla, Alo Yoga, Pret A Manger, Pickl, Raising Cane’s, WHSmith Curiosity, New Balance, and Golden Apple have also expanded into Qatar during this period.

Baraha Town is now operational, offering a mix of retail, residential, and office spaces across 16 G+M+1 buildings.

The development features 500–580 units, including studios and one-bedroom apartments, along with retail outlets, office spaces, a health club, and a supermarket.

This multi-use complex is poised to enhance the appeal of the local real estate and retail markets.

However, challenges persist in Qatar’s market, particularly in Q3 2024.

Anthony Fernando, Director of Valuations in Qatar at ValuStrat, attributed declines in several sectors to reduced investor confidence, oversupply post-FIFA, and higher interest rates, which have dampened borrowing and transaction activities.

He noted that a gradual recovery is expected as the central bank plans to introduce policies in 2025 aimed at easing interest rates.

In the residential market, rental rates continue to decline in some areas, leading to a shift in occupancy from secondary to primary locations.

This trend could contribute to a gradual increase in rents in primary residential zones in late 2024 and into 2025, as many rental contracts come up for renewal in the fourth quarter.

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