Doha: Qatar’s hospitality market is witnessing a significant boost with projects in the hotel sector signaling an increase to $0.53bn (QR1.94bn) this year, according to a report by Statista. Industry experts across the country have predicted that this substantial surge in revenue will enable robust occupancy rates in hotels and establish a stronger-than-expected market.

Additionally, the data notes that this upward growth trajectory will result in a compound annual growth rate of 2.85 percent, indicating a project market volume of $0.61bn (QR2.22bn) within the next five years.

However, analysts point out that the number of users in the hotel industry is estimated to reach approximately 1.2 million users by 2029, with a user penetration rate of 34.3 percent this year, showing an increase up to 43.2 percent before the decade-end. The global research platform also reports that the average revenue per user (ARPU) is anticipated to amount to $0.56k.

The report stated, “It is worth mentioning that in the Hotels market sector, 87 percent of total revenue is expected to be generated through online sales by 2029.”

On the other hand, compared with global statistics, the US remains the topmost country to generate the highest revenue in the sector, with a projected revenue of $110,600m in 2024.

However, researchers also emphasise that Qatar’s hotel demand is evolving swiftly with a focus on luxury, innovation, and sustainability to draw numerous high-end tourists to the country.

In its worldwide analysis, Statista reports that the revenue of the hotel industry is estimated to amount to $426.40bn by the end of this year.

Experts also remark that CAGR between 2024 and 2029 is expected to rise at the rate of 3.72 percent, with an outcome of a projected market volume of $511.90bn by 2029.

However, by December, the number of users in this market is expected to reach 1.68 billion, while the user penetration will hit 23.1 percent by 2029, up from 16.1 percent in 2024.

Analysts also highlight that the ARPU will amount to $340.90 and forecast a growth of 80 percent of the total revenue in the market through online sales in the next five years. The report further adds that hotels in Japan are incorporating traditional cultural elements including tatami floors and Japanese gardens to attract tourists across the globe.

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