Tourism Performance Summary Q

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1 Tourism Performance Summary Q

2 Introduction In the first three quarters of 2017, Qatar welcomed 1.81 million visitors 1. This compares to 2.19 million visitors in the same period in 2016, and represents a decline in total visitors of 18% year-to-date. The majority of this decline comes from a decrease in GCC arrivals, as a result of the blockade imposed on Qatar since June 5; but there are promising increases in specific segments and markets, which can be capitalised on in the coming months. Arrivals growth at the beginning of the year was robust, with arrivals up 7% in the first five months of the year compared to This reflected more stable economic conditions in key source markets, supported by a more stable oil price and a rebound from subdued growth in early The growth was further supported by new policy initiatives facilitated by Qatar Tourism Authority, including the introduction of a free, 96-hour transit visa that was made available to visitors transiting through Hamad International Airport, as well as significant growth in cruise tourism. However, the ongoing blockade has weighed on total visitor arrivals, resulting in a 52% decline in visitor numbers over the summer months, compared to the same period in 2016; and where most of the contraction has come from within the GCC, notably from the blockading countries. As we begin implementing the Next Chapter of Qatar s National Tourism Sector Strategy, we will be working with our partners in the public and private sectors to accelerate growth over the next five years, through diversifying our visitor source markets, tourism products, and services, with a focus on enhanced end-to-end visitor experience. With the trade show season about to begin, we will be shining a spotlight on all of the country s new hospitality, retail, culture and eco-tourism offerings, as well as the fact that Qatar is the region s most open nation. We will also be promoting these offerings through our newly opened offices in China, as well as offices which we aim to open before the end of the year in India and Russia. The 2017/18 cruise tourism season, which began on 26 October with the arrival of the Seabourn Encore, promises more growth in Q4 of this year. 1 A visitor is a traveller taking a trip to a main destination outside of his/her usual environment, for less than a year, for any main purpose (business, leisure or other personal purpose) other than to be employed by a resident entity in the country or place visited. A visitor (domestic, inbound or outbound) is classified as a tourist (or overnight visitor), if his/her trip includes an overnight stay, or as a same-day visitor (or excursionist) otherwise. Source: United Nations World Tourism Organization. 2

3 Arrivals Arrivals by Nationality (Grouped by Region) Total arrivals of GCC nationals fell by 35% during the first three quarters of 2017 compared to 2016, with arrivals of Other Arab nationals also down 18%, which can largely be attributed to the blockade. Visitor arrivals from Other Asia nationals were marginally down by 2%. Arrivals of nationals from Europe and from the Americas grew by 8% and 4% respectively in the first three quarters of Meanwhile, arrivals from Other African nationals grew by 33% during the first three quarters of 2017, although visitor volumes from this region represent a lower share of total arrivals compared to any other region. The increases in the numbers of visitors who are nationals of Europe and the Americas can be attributed to the growth of the cruise tourism sector, with approximately 25,000 additional visitors travelling to Qatar on board cruise ships. The numbers also reflect the impact of visa facilitation policies, with 24,000 visitors from the two regions availing of the free 96-hour transit visa to visit Qatar. Further increases are expected over the remainder of the year, especially as the 2017/18 cruise season begins in Q4. Since August 2017, Qatar has extended visa-free entry to citizens of over 80 countries, allowing their nationals to spend a total of either 30 or 90 days in Qatar, depending on their nationality. A visa waiver is issued free of charge at the port of entry, upon presentation of a valid passport and onward travel ticket. This development followed earlier measures introduced during the summer including an online e-visa platform through which travellers of all nationalities can apply for tourist visas. In a move to further facilitate ease of access to the country, an Electronic Travel Authorisation for all nationalities was also introduced in late Q3. These new policies are intended to attract greater visitor volumes, and to diversify Qatar s current mix of source markets, helping to rebalance Qatar s tourism sector and offset the current reduction in arrivals caused by the blockade. Arrivals to Qatar by Nationality, Grouped by Region, Jan-Sep 2016 vs. Jan-Sep 2017 Arrivals to Qatar by Nationality, Grouped by Region, Jan-Sep 2016 vs. Jan-Sep % Change Total 2,193,895 1,805,329-18% GCC 1,087, ,029-35% Americas Europe Other Asia inc. Oceania Other Africa Other Arab GCC 2,500,000 2,000,000 Other Arab 166, ,401-18% Other Africa 23,034 30,586 33% Other Asia inc. Oceania 484, ,182-2% Europe 320, ,207 8% No of Arrivals 1,500,000 1,000, ,000 Americas 111, ,924 4% Source: Ministry of Interior and Qatar Tourism Authority Source: Ministry of Interior and Qatar Tourism Authority

4 Arrivals to Qatar by Month, Jan-Sep, Arrivals to Qatar in early 2017 generally followed the trend of the previous four years, whereby arrivals are particularly strong in January (327,106) before dipping in February (251,853). In 2017, arrivals continued to remain strong in March (285,485) and April (295,134) with a notable boost from cruise passenger arrivals (29,046) during the 2016/17 cruise season. Arrivals to Qatar by Month, Jan-Sep, The immediate impact of the blockade is clear in June and throughout the months of Q3, with particularly pronounced falls in arrivals from GCC and Other Arab countries, as well as subdued demand from other nationalities - a potential impact of closure of flight routes, longer travel times, and fewer available seats from countries party to the dispute with large resident expatriate populations. The introduction of new visa types and the enhanced access to visas on entry to citizens of countries around the world have helped Qatar to attract visitors from new source markets. By the end of Q3 2017, 38,899 visitors to Qatar had arrived on the 96-hour transit visa, a visa option which had not previously been available for the same period in , , , , , ,000 50,000 Jan Feb Mar Apr May Jun Jul Aug Sep Source: Ministry of Interior and Qatar Tourism Authority 4

5 Accommodation Hotel and Hotel Apartment Performance In the first three quarters of 2017, seven new properties opened, increasing the number of available rooms by 8% (1,911 rooms) since the start of the year. This brings the total number of rooms available in Qatar to 24,960 (across 125 properties) at the end of Q3, representing a 13% increase in room supply in comparison to the end of Q Hotels in Qatar witnessed an increase in demand across the first three quarters of 2017, with the number of rooms sold increasing by 4%, compared to the same period in While the pace of growth in hotel demand slowed to 1% during Q compared to Q3 2016, this trend of increased demand indicates that the number of visitors staying in hotel accommodation remained buoyant despite the blockade. Hotel demand during the first three quarters of 2017 has been supported by a higher average length of visitor stay and is reflective of the changing visitor profile (with less visitors from countries party to the dispute, who oftentimes stay with friends and family rather than in hotel accommodation). Despite the positive growth in hotel demand, the overall performance of the accommodation sector remains subdued, as continued growth in supply year-to-date has weighed on the key performance metrics. The occupancy rate across all hotels and hotel apartments was 58% for the first three quarters of 2017, compared to an occupancy rate of 61% during the same period in 2016, representing a decline of 5%. The majority of star classifications have witnessed declines in occupancy rates during the first three quarters of The highest occupancy rates were in Standard Apartments and 4-Star hotels, with average occupancy rates of 66% and 59% respectively over the first three quarters of The lowest reported occupancy rates during this period were 3-Star hotels at 56% and 1- & 2-Star hotels with an occupancy rate of 44%. The Average Room Rate (ARR) across all hotels and hotel apartments in Qatar was QAR452 during the first three quarters of This represents a fall in ARR of 8% compared to the same period in The highest rates were witnessed in 5-Star and Deluxe Apartments, with rates of QAR648 and QAR433 respectively. The largest decline in rates were among 3-Star hotels and Deluxe Apartments, where rates fell by 17% and 16% respectively. These large drops in ARR have helped to mitigate declines in occupancy witnessed elsewhere. 3-Star hotels and Deluxe Apartments, increased their occupancy rates by 2% during the first three quarters of 2017; the only property types to have an increase in occupancy during this period, as compared to the same period last year. Revenue per Available Room (RevPAR) was QAR261 in the first three quarters of 2017 across all hotels and hotel apartments. This rate represents a decline of 13% compared to the same period in 2016 and is broadly reflective of the patterns observed in ARR. The highest reported RevPAR s were found in 5-Star hotels (QAR368) and Deluxe Apartments (QAR261), although these figures represent declines of 10% and 14% compared to the same period in The lowest RevPAR in the first three quarters of 2017 was reported in 1- & 2-Star Hotels at QAR83, a decline of 25% compared to

6 Accommodation Sector Summary Performance Indicators, YTD 2017 by Jan-Sep 2016 vs Jan-Sep YTD 2017 YTD % Change Occ ARR RevPAR ALOS Occ ARR RevPAR ALOS Occ ARR RevPAR All Hotels and Hotel Apartments 61% % % -8% -13% All Hotels 61% % % -7% -12% All Hotel Apartments 63% % % -13% -14% 5 Star 58% % % -8% -10% 4 Star 66% % % -7% -17% 3 Star 55% % % -17% -16% 1- & 2- Star 55% % % -6% -25% Deluxe Apartment 59% % % -16% -14% Standard Apartment 71% % % -14% -19% Total Properties and Room Stock for the Month of September % change Properties Rooms Properties Rooms Properties Rooms , ,960 10% 13% 6

7 Hotel Performance The occupancy rate across all hotel classifications was 57% in the first three quarters of This represents a decline of 6% from the same period in The occupancy rate across 5-Star hotels was 57% during the first three quarters of The highest occupancy rate was achieved in 4-Star hotels, with an occupancy rate of 59%, although this still represents a decline of 11% from The only hotel classification to witness an increase in occupancy rate during the first three quarters of 2017 was 3-Star hotels, where the occupancy rate was 56%, an increase of 2% compared to The lowest occupancy rate was observed in the 1- & 2-Star classification at 44%. The ARR and RevPAR across all hotel classifications were QAR460 and QAR264 respectively in the first three quarters of The highest reported rates were in the 5-Star hotels with ARR of QAR648 and RevPAR QAR368, followed by the 4-Star hotels with ARR of QAR294 and RevPAR of QAR173. With the challenging backdrop of lower visitor arrivals since the beginning of the blockade, alongside increases in supply, it appears that those hotel classifications that have reduced their ARR the most have better weathered the overall decline in hotel occupancy. In the first three quarters of 2017, ARR in 3-Star hotels declined by 17% and occupancy grew 2%, but in 1- & 2-Star hotels where ARR declined by 6% - the lowest percentage decline of any hotel classification ARR - occupancy declined sharply by 20% compared to Occupancy Rate, ARR, and RevPAR by Hotel Classification, Jan-Sep 2017 Occupancy Rate, ARR, and RevPAR, % change Jan-Sep 2017 vs Jan-Sep 2016 by Hotel Classification QAR Occ ARR RevPAR Occ ARR RevPAR 100% 5% 2% 80% 0% 57% 57% 59% 56% 60% -2% 44% -5% 40% -6% -7% -8% -7% 20% -10% -10% -11% 0% -12% -15% -16% % -17% -20% % % % change -6% -20% -25% All Hotels 5-Star 4-Star 3-Star 1-& 2-Star All Hotels 5-Star 4-Star 3-Star 1-& 2-Star 7

8 Hotel Apartment Performance The occupancy rate across all hotel apartments was 62% in the first three quarters of Deluxe Apartments enjoyed an increase in occupancy rate to 60% during the first three quarters of 2017, an increase of 2% compared to the same period in Drops in occupancy in Standard Apartments were more significant, reaching a rate of 66%, which represents a 6% decline compared to The ARR and RevPAR across all hotel apartments were QAR386 and QAR240, with Deluxe Apartments continuing to report higher rates with ARR at QAR433 and RevPAR at QAR261, compared to Standard Apartments ARR of QAR281 and RevPAR of QAR187. Compared to the same period in 2016, the hotel apartment sector witnessed declines in ARR and RevPAR during the first three quarters of Total hotel apartment ARR declined by 13% and RevPAR declined by 14%. Deluxe apartments witnessed a decline of 16% in ARR compared to a decline of 14% in Standard Apartments, however Standard Apartments RevPAR declined by 19% compared to 14% in Deluxe Apartments. Occupancy Rate, ARR, and RevPAR by Hotel Apartment Classification, Jan-Sep 2017 Occupancy Rate, ARR, and RevPAR, % change Jan-Sep 2017 vs Jan-Sep 2016 by Hotel Apartment Classification Occ ARR RevPAR 62% 60% 66% 100% 80% 60% 5% 0% -1% Occ ARR RevPAR 2% % 20% 0% % change -5% -10% -6% QAR All Hotel Apartments Deluxe Apartment Standard Apartment -15% -20% -25% -13% -14% -14% -16% -14% -19% All Hotel Apartments Deluxe Apartment Standard Apartment 8

9 Average Length of Stay The average length of stay of visitors to Qatar during the first three quarters of 2017 was 3.7 nights, up from 3.3 nights during the same period in The highest average length of stay remains in Deluxe Apartments, with a reported average length of stay of 13.8 nights during the first three quarters of The average length of stay in Standard apartments was 9.4 nights during the same period. The shortest average length of stay was observed in 1- & 2-Star hotels (2.6 nights) closely followed by 5-Star hotels (2.7 nights), although these average lengths of stay still represent growth compared to the same period in These patterns are typical for the accommodation sector, as customers of hotels tend to be more transient than visitors staying in hotel apartments, who tend to be larger groups travelling for leisure purposes. During the first three quarters of 2017, the average length of stay grew by 10% compared to the same period in All hotel and hotel apartment classifications have observed growth in their reported average length of stay. The largest increases in the average length of stay were reported in 3-Star hotels and Standard Apartments, where the average length of stay increased by 28% in each, compared to the same period in The slowest growth in average length of stay was witnessed in 5-Star hotels, where a growth of 5% was reported for the first three quarters of Average Length of Stay by Hotel Classifications, Jan-Sep 2017 vs Jan-Sep No. of Days All All Hotels All Hotel Apartments 5-Star 4-Star 3-Star 1- & 2 -Star Deluxe Apartment Standard Apartment 9

10 For further information, please Visit Qatar

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