Flush with cash, with oil prices consistently above $120 a barrel, the United Arab Emirates, Saudi Arabia and Qatar have all embarked on aggressive hotel and transport development programs as they seek to diversify their economies away from oil and boost revenues from the tourism sector. The total direct contribution of travel and tourism to GDP in GCC countries is expected to reach $44 billion this year, up 27 percent from 2009, the peak of the financial crisis in the Gulf, according to the World Travel & Tourism Council. The direct contribution of travel and tourism to Saudi Arabia's GDP is expected to reach $14.9 billion, or 2.9 percent in 2012, up from $10.4 billion in 2009, or 2.7 percent, as the Kingdom focuses its efforts to provide the necessary travel infrastructure to boost religious, business and domestic tourism. Saudi Arabia is spending more than $500 million on expanding its existing airports and is planning a new $7 billion airport in Jeddah. Well documented but nevertheless still impressive is Qatar's infrastructure spend which will dominate the next five years as the Gulf state prepares to host the 2022 World Cup and for life beyond, with around $65 billion due to be invested in new transportation schemes. These include the new $11 billion Doha International Airport, the $6 billion Doha port project and a $25 billion metro and railway. The direct contribution of travel and tourism to Qatar's GDP is expected to reach $1.1 billion in 2012, compared to $800 million, in 2009. Qatar is set to see the fastest growth in tourism this year, with the World Travel & Tourism Council forecasting 13.2 percent growth. The WTTC said in a statement that Qatar will grow fastest at 13.2 percent while Syria will likely see another dramatic fall, projected at 20.5 percent, as the political situation worsens, increasing concerns over security. For Syria, it represents a huge decline after the country attracted 14 percent of all international arrivals in the Middle East in 2010, second only to Saudi Arabia. Last month, STR Global data said Qatar's tourism sector was likely to see a near 70 percent growth in hotels, the largest in the Middle East and Africa. Qatar is expected to see a near 70 percent rise in hotel rooms' supply. Among the countries in the region, Qatar reported the largest expected growth up 69.9 percent if all 7,340 rooms in the country's total active pipeline open. In the UAE, this figure is expected to hit $19.9 billion this year, compared with $16.6 billion in 2009. Some of the Gulf state's major tourism infrastructure investments include the $8 billion expansion of Dubai International Airport, as the emirate seeks to increase its capacity from 60 million passengers to 90 million by 2018 to become the world's busiest airport. Complementing its airport expansion, Dubai added a second Metro line last year to connect the city east to west and is scheduled to open a tramline in 2014. Meanwhile Abu Dhabi's national carrier Etihad Airways continues to expand aggressively as the UAE capital continues to build its reputation as a tourist hub developing projects such as Ferrari World, an amusement park on Yas Island, and Saadiyat Island, home to the planned Louvre and Guggenheim museums. "The economic conditions in the GCC are excellent and hotel revenues are continuing to grow steadily, so we see the region as a key hotel investment destination," said Amine Moukarzel, President, Golden Tulip Hotels, Suites & Resorts MENA. Against this backdrop, top industry executives and officials will head to the annual Arabian Hotel Investment Conference 2012 (AHIC), which takes place in Dubai on April 28-30 at Madinat Jumeirah, to discuss investment opportunities in a region where governments are ploughing billions of dollars into tourism infrastructure. "AHIC provides a platform for investors, government officials, developers, hotel executives and advisors to come together. Investment into the region's tourism industry is still an attractive proposition despite the Arab Spring and the real prospect of a recession in Europe," said Jonathan Worsley, Chairman and CEO Bench Events and Board Director of STR Global. There will also be a separate dedicated session exploring investment opportunities outside the Middle East.
