A minimum of 500 hotels need to be developed in Iraq to meet tourism demand, according to the elected chairman of the Iraqi National Businessmen Council, Ibrahim al Baghdadi.
“According to the strategic investment plan, we need at least 500 hotels just for the four main cities,” al Baghdadi asserted.
Speaking at the Investment in Iraq Summit 2011, organised by Range Hospitality and held at DIFC on Monday, al Baghdadi, who is also Board Member of the National Investment Council of Iraq, said the new hotels needed to address the five-, four- and three-star markets.
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They would be required to meet the growing numbers of religious tourists visiting Iraq, which Range Hospitality estimated to amount to more than 12 million people annually.
“According to our statistics, CNN reported 18 million, others reported 6 million, we say there’s 12 million people paying homage in the holy city of Karbala [alone],” said Range Hospitality vice chairman Mohammed Asaria at the Summit.
“When you look at tourism figures, that ranks pretty highly and it’s not that far away from Dubai,” he said.
“Karbala has no five-star hotels, room rates for a studio in a two-star hotel are between US $200 and $400 but expansion is under way,” said Asaria, who is developing the Al Rawdatain Gardens hotel in Karbala, which will be managed by Shaza Hotels.
Al Baghdadi said that even higher rates were currently being charged for sub-standard accommodation.
“What’s available now is less than 200 hotels, and none of them are five-star,” he said.
As a result, “this gives the opportunity for the local citizen to rent their houses for $500-1000 per night,” al Baghdadi added.
The growth of the tourism industry in Iraq would be supported by the country’s growing oil exports, explained al Baghdadi.
“Iraq is exporting 2,350,000 barrels of oil daily,” he said. “Over the past one and half years, Iraq has signed 12 deals for oil drillings with big giants…this will enable the produce of three million barrels of oil a day.
“In 2014 the agreements with these 12 companies will lead to the production of 12 million barrels a day. In 2014 all of these contracts will enable Iraq to have an income budgeted of $250 billion. In 2016, it will reach $450 billion. This is based on $90-100 per barrel,” said al Baghdadi.
“All of this money will be utilised to rebuild Iraq,” he said.
Asari added that the global religious tourism statistics also reflected the potential in Iraq.
“The religious hospitality market is currently worth over US $18 million with over 2300 million travellers [worldwide]. If you divide the two figures, that’s quite a large spend per capita,” he commented.
“According to World Travel Market, religious tourism is the fastest growing sector within the travel and tourism industry,” Asari said.
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Jul 11, 2011 , USA
The real test is being able to tolerate yourself,it is easy to insult someone,it easier compliment another and make a lifelong friend.Diversity is the key to a prosperous world.
May 22, 2011 , United Arab Emirates
You are based in Oman correct? You probably already own the helment and vests!