Investors in Iraq told to focus on hotels
In the run-up to a major investment conference in Washington, traders at Iraq's stock exchange have told foreign investors to concentrate on banks and hotels, according to a report by AFP.
Many are predicting that when security improves, tourism will regain its foothold, boosting the hotel sector.
Investment firm Al-Jawhara senior broker Ali Jamal said “the door is being opened for investment in tourism”.
“New hotels are being built and existing ones are being refurbished,” he told the AFP.
"Hotels and banks will do well - once the security situation gets better, their value will rise at an extraordinary rate," predicted Salman Hassan Salman al-Khafaji, who said he had made a profit of 50 million Iraqi dinars (US $43,000) on the markets so far this year.
"Foreigners should invest in tourism -- it will definitely get better here."
A delegation led by Prime Minister Nuri al-Maliki is set to visit Washington to court foreign investment from major companies on Tuesday and Wednesday.
Some 750 projects will be presented to potential investors and presentations will be made encouraging investment in Iraq.
Despite overwhelming obstacles facing Iraq’s tourism sector, The Iraqi government is adamant about its dedication to promoting tourism and carrying out any endeavours that could help the country restore confidence in its tourism sector, a Euromonitor International spokesman told HotelierMiddleEast.com.
“More importantly, it intends to build its own capacity in the sector,” he added. “Some Iraqi universities are teaching tourism courses, tourism trade shows are being held and academic tourism conferences are being conducted.”
Iraq is also enhancing its aviation sector, mainly by renovating airports or building new ones, such as the Erbil and Sulimaniyah airports in the Kurdistan region.
Furthermore, Iraq is seeking to develop its accommodation sector by renovating a variety of hotels in major cities and resorts — a Sheraton Hotel was recently opened in Erbil, and travel agencies have also begun to open.
However, Euromonitor International cited religious tourism as the main reason tourism didn’t stop completely in Iraq during and after the war.
“Iraq’s Shiite shrines have been most popular among Iranians, who can now travel freely to and from Iraq and who made up almost the totality of international tourist arrivals to Iraq in 2007,” the spokesman said.
“There is more potential to boost religious tourism to Iraq further, but the infrastructure is very much lacking and the country will need to get back on its feet first.”
The safest area in Iraq is the Kurdistan area, which is home to many developments in terms of tourism and where international tourists can travel without worrying unduly about security issues.
As a result, growth in international tourist arrivals to Iraq will be mainly driven by this region. International tourist arrivals are predicted to grow by an average 6% a year.