Al Nuaimi: 40 hotels to open over the next 12 months, after delays to scheduled openings. Al Nuaimi: 40 hotels to open over the next 12 months, after delays to scheduled openings.

As Qatar Tourism Authority announces revised hotel targets for 2010, Harriet Sinclair investigates which properties are underway, and which projects have gone under

The significant investment in the future of Qatar as a business hub and tourism destination will see the number of business tourists in the country grow from 0.9 million in 2009 to 1.6 million in 2014, according to global information publisher Euromonitor International.

The government’s plans to improve the country’s infrastructure were credited with a future boost to tourism in the country; with the eagerly-anticipated opening of the new Doha International airport in 2012 and plans for a metro system highlighted by the report as particularly significant developments.

Investment from the Qatari government has come as a result of the recorded average annual real GDP growth of 13.4% between 2004 and 2009 on the back of the country’s energy sector, allowing expenditure on tourism to increase — with US $20 billion allocated to developing infrastructure, hotels and exhibition space from 2008 to 2014.

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The investment is beginning to pay off, with Qatar Tourism Authority (QTA) reporting a rise of two points in occupancy rates for the first half of 2010; which has seen figures go from 59% during the first half of 2009, compared to 61% for the same period in 2010. In addition, revenues of four and five-star hotels in the country exceeded revenues for the same period in 2008 and 2009.

The addition of new hotels to the market, along with the continuing expansion of Qatar Airways and infrastructure development, is indicative of the government’s desire to expand the reputation of Qatar as both a tourism and business destination.

The Qatari economy has also been ranked the most competitive in the world according to the World Economic Forum’s Global Competitive Report, which saw Qatar ranked 17th in the world, four places ahead of second-highest ranked Middle Eastern country, Saudi Arabia (ranked 21st), and eight places ahead of the UAE (ranked 25th).

However, the World Economic Forum also highlighted the most problematic factors for doing business in Qatar; with 27.7% of respondents citing restrictive labour regulations, 22.3% stating access to financing as a problem and 8.2% of respondents complaining of an inadequate supply of infrastructure — something which QTA is trying to address with its developments.