With an estimated eight percent annual growth rate in travel market in the country, mainly attributed to sport tourism, the Ministry of Economy and Commerce has identified several investment opportunities for private sector in this sector, among other areas.
Based on a study, the ministry has announced 83 trade and investment opportunities to be shifted from the public sector to the private sector until 2023.
These opportunities are available in seven fields: Sport event management and promotion, sport development, construction of sports facilities, goods and sports equipment, sport marketing, sport tourism, and operation and maintenance of sports facilities, the ministry said yesterday.
The study highlighted the continuous growth of Qatar's tourism sector. The number of visitors from 2010-2015 increased from 1.7 million to 2.9 million, an 11.5% annual increase. Current estimates forecast the growth to reach 3.7 million, 4 million and 7 million by 2019, 2020 and 2030 respectively.
It is projected that the travel market will grow as a result of the growth in sport tourism in Qatar from QR18m in 2016 to QR 37m in 2025, at a compounded annual growth rate of 8 percent. This growth will peak in 2022 at QR48 m because of hosting 2022 world cup. The study was conducted by the ministry on investment in sport tourism projects, in collaboration with the Ministry of Culture and Sports, the Supreme Committee of Delivery and Legacy, the Qatar Olympic Committee, the Aspire Zone Foundation, and the Qatar Tourism Authority.
The study focused on the financial plan in the sports tourism opportunities. Investors seeking to make the most out of sports tourism should invest around QR1.5 million. The current investments in that field so far is QR458,000 for 2016-2025, with an expected rate of return of 11%.
Local firms with limited financial abilities can still invest in part of the QR772,000 opportunity. The current net value of this opportunity is around QR229,000, according to the study.
If sports tourism opportunity is fully realized, revenues would increase from QR5.4 m in 2016 to close to QR11 m in 2025, a compounded annual growth rate of 8%.
As for expenses, the study said that wages represents 33 percent of total operating costs. General and administrative costs on the other hands were 27%, items bought would also represent 21%. The study estimated profits before tax in 2025 at QR565,000 with a net profit margin of 5%. The study comes within the framework of developing sports business industry, increasing the number of small and medium-sized companies, encouraging entrepreneurs and giving a greater role to the private sector in the economy, said the ministry in a statement.
