Qatar’s hospitality sector is also gearing up for the 2022 FIFA World Cup, but some football fans may opt to stay in the UAE and commute back and forth on match days. Indeed, many are predicting that the Emirates’ established reputation for hospitality will be further enhanced by a selection of more affordable options created in time for Expo 2020.
Another consideration for the region is the price of oil and gas. Should the lacklustre cost of crude persist, many global economies will be unable to bear the high prices traditionally associated with Gulf hospitality.
With this in mind, GCC various construction outfits will do well to focus on alternatives to existing resorts; developments that will offer more competitive rates, compared to luxury resorts.
That said, it does not follow that the quality of hospitality projects in the GCC will decrease during the coming years. On the contrary, the region’s construction sector is looking to create intelligent designs that make hotels more affordable through the use of innovative technologies and materials.
“In this regard, countries such as Thailand and China have achieved impressive results, and they are currently offering remarkable accommodation options at inexpensive prices,” comments Chennoufi.
And though it may seem somewhat odd at first, high occupancy rates can present somewhat of a barrier to GCC hospitality development. The region’s existing hotels will be reluctant to embark upon refurbishment initiatives if it means missing out on revenues. Even so, design and fit-out firms such as ISG Middle East and Draw Link Group are confident that with the right approach, hotel retrofit projects will increase in popularity in the short- to mid-term future.
“We anticipate an increase in activity over the next two years as older properties upgrade to compete with new stock entering the market,” comments ISG’s Trivett.
And of course, as the region’s landmark events draw ever closer, the hospitality sector will have no choice but to gear up for increased demand.
Mark Shea, head of hospitality at Faithful+Gould concludes: “It’s an exciting region to be in at present. There is a lot of hotel construction taking place, and if occupancy rates grow as expected, the sector is heading in the right direction.”
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