Kuwait to showcase $2m of investment plans at ATM

Kuwait will exhibit cultural and tourism investment plans at Arabian Travel Market 2015 (ATM) with a focus on government plans that are currently in action, as well as those to be launched shortly.

Arabian Travel Market exhibition manager Nadege Noblet said: “World Travel and Tourism Council predictions put tourist arrivals at 440,000 by 2024 - up from 270,000 in 2014 — and the government has ploughed US$13 billion into infrastructure development, which is accelerating opportunities for Kuwait’s tourism sector as a whole.”

Kuwaiti companies exhibiting at this year’s ATM include the Ministry of Commerce and Industry Tourism Sector, Kuwait Airways, Holidays Arabia, and first time participant, Kuwait Concierge Company-Call Center WLL.

Tourism development entities including the Kuwait Touristic Enterprises Company (TEC), are launching a number of entertainment and sports projects valued at around $460 million, while hotel room supply is forecast to rise by almost one-third, with up to 10,000 rooms scheduled to come online by the end of 2015.

"Jumeirah opened the doors to its Messilah Beach Hotel... and several four and five-star resorts are also set to open this year, including projects from IHG and Millennium while the government plans to transform Failaka Island and Boubyan Island into top leisure tourism destinations,” Noblet noted.

According to the Aranca Q3 2014 MENA Tourism & Hospitality Report, Kuwait’s tourism sector is undergoing a change with a number of new projects in the pipeline.

These include a new passenger terminal at Kuwait International Airport, which is being spearheaded by the Kuwait Directorate General of Civil Aviation. Scheduled for completion in 2016, the $4.8 billion contract will increase capacity from six million in 2013 to 13 million by 2016, and up to 25 million per annum by 2025, according to the Centre for Aviation (CAPA).

In January this year, local carrier Jazeera Airways reported a 22% year-on-year increase in passenger movements for the period, following consecutive increases in both November and December 2014. In particular, the airline registered a 32% increase on its Istanbul, Beirut and Amman routes and 20% growth on its GCC routes.

A new 160 kilometre-long metro system is also under construction along with the planned Kuwait National Rail Road System - a 511 kilometre-long integrated rail network that will greatly enhance domestic and regional travel opportunities.

STR Global’s November 2014 Hotel Market Overview put year-to-date room occupancy at 51.8% with an average daily rate of $253.07. Kuwait currently has around 7256 hotel rooms with a further 1958 rooms and up to seven contracted hotels and resorts in the pipeline.

The Aranca report also highlighted the importance of Saudi Arabian visitors as a key source market for Kuwait, with leisure and business travellers making a significant contribution to sector revenues.

“Saudis historically opt for Kuwait as a convenient destination for short getaways, Eid vacations etc., and the tourism sector is hugely reliant on this traffic,” said Noblet.

According to MEED intelligence, the top 10 projects currently under development in the country cover a wide range of activities from a $416 million investment by the Amir Diwan for the Abdulla Al Salem Cultural Centre and Tamdeen’s $206 million Al Kout Mall, to the $200 million Jaber Al Ahmed City Olympic Village and the country’s largest retail development to date, The Avenues, with two further $150 million apiece phases also making the list.

“This collectively represents over $2 billion worth of investment, and ATM will give exhibitors a unique platform to reach out to existing and prospective partners who will help drive new business to the country,” said Noblet.