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Business / Qatar Business

Budget hotels maintain solid performance in October

Published: 11 Dec 2019 - 08:56 am | Last Updated: 02 Nov 2021 - 12:16 pm

By Mohammad Shoeb I The Peninsula

Qatar’s hospitality sector continued to maintain its strong performance as a result of concerted efforts on the part of government and private sector in boosting the flow of tourists to Doha.

The average revenues of hotels, including all categories of properties, witnessed a moderate year-on-year growth in October 2019 (year-to-date, YTD), with the budget hotels (2 & 1 Star) recording the highest 27 percent growth in their revenues.

The average revenue of hotels, measured by per available room, increased to QR242 in October 2019 (YTD), up 5.2 percent, or QR12 per room, compared to QR230 a year ago (October 2018), latest official data show.

Supported by significant increase in the number of tourists, which resulted in the increase in hotel occupancy rates, the revenue per available room of hotels improved in October 2019 compared to a year ago, according to data released by the Planning and Statistics Authority.

The average occupancy of hotels (all categories combined) in October (YTD) increased by 5 percent to 64 percent against 59 percent for the same period last year.

When analysed by individual categories, data show that all categories of hotels registered positive growth in October in ‘hotel revenues per available room’ by varying degrees ranging between QR7 and QR24, with 2&1-Star hotel rooms seeing the highest 27 percent, or QR24 (from QR88 to QR112).

This was followed by 3-Star category hotels which saw their average revenue increasing to QR132 in October, up by nearly 9 percent (or QR11 per available room) compared to QR121 reported for October 2018.

Revenues of 4-Star hotels edged-up to QR151 in October 2019 (YTD) against QR144 per available room in the same month last year. The revenue of 5-Star category hotels has also registered an increase of 2.1 percent or (QR7 per available room) to QR328 in October 2019 compared to QR321 in October 2018.

The overall improvement in the performance of the hotel industry can be mainly attributed to increase in the number of tourists, especially as a result of sharp and steady growth in cruise tourism.

According to recently released data about 1.66 million (to be exact 1,665,316) people visited Qatar in October 2019 (YTD). Out of that 1,548,047 people came by Air and 117,269 by sea.

Europe and Other Asia (including Oceania) accounted for a significant majority (70 percent) of the total number of visitors in October (YTD) 2019, with Asia, including Oceania, accounting for 39 percent and Europe 31 percent.

GCC countries accounted for 11 percent of the total number of visitors for the period. America, Africa and other Arab countries combined accounted for 18 percent of the total number of visitors to Qatar for the year until October 2019.

Nearly 93 percent of the total number of visitors arrived by air and the remaining (7 percent) entered Qatar by sea route.