Al Hajeri pointed to other countries in the “Middle East at large” where the potential for investment in the hospitality sector remained particularly strong — namely Iraq, Algeria and Libya.
This echoed the sentiments laid out by Meed content director Sean Brierley and Horwath HTL managing partner Philippe Doizelet, in lat year’s November issue of Hotelier Investor.
Al Hajeri said: “Unfortunately for both Libya and Algeria the laws governing land ownership and the restrictions on foreign exchange transfer have made potential investors shy away but this will change with time.
“Iraq on the other hand offers a huge potential for both religious tourism in the cities of Najaf and Karbala and for business in the capital Baghdad and in the northern city of Irbil.”
He added that “one should not overlook the ‘old’ Middle East as a destination”.
“Lebanon, Jordan and upcoming Syria represent historical tourism destinations beyond religious tourism with a potential for investment due to population increases and recent developments in governing laws,” said Al Hajeri.
With the above opportunities in mind, HE Mubarak Al Sabah said that “hotel real estate investment remains very strong in the region”.
“The Middle East, while common in some characteristics is diverse and each country has its own strategies and priorities for investment and travel.
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“In general, I do not feel that markets in the region are saturated,” said HE Mubarak Al Sabah. “It is much rather about growth and market movement rather than saturation. There are many cases of untapped markets and the demand for quality accommodation at a reasonable cost remains strong.”
However Al Hajeri urged caution in terms of future investment.
“Generally speaking, I would consider that most if not all of the GCC states have an ample supply of hotel rooms in all the categories — whether for now or in the medium term,” he asserted.
“Any investor considering a potential project in a GCC state would need to carefully weigh up all the options and ensure to deliver a cost effective project with first class facilities in order to attract customers.”
The three gentlemen are speaking at one of the Arabian Hotel Investment Conference (AHIC) panel sessions on May 2, where they will be discussing this topic in more detail — specifically in terms of the opportunities to target the regional Arab travel market.
Visit www.arabianconference.com to view the full programme for the event.
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