Government
five-year plan reaching zenith as transport infrastructure investment,
expansion of hotel portfolio and raft of new leisure and entertainment options
lays the foundation for future sector growth
“World Travel and Tourism Council predictions put tourist arrivals
at 440,000 by 2024 - up from 270,000
in 2014 - and the government has ploughed US$13 billion
into infrastructure development, which is accelerating opportunities for
Kuwait’s tourism sector as a whole,” said Nadege Noblet, Exhibition
Manager for Arabian Travel Market, which takes place at the Dubai International
Convention & Exhibition Centre, on 4-7 May 2015.
According to the Aranca Q3 2014 MENA Tourism &
Hospitality Report, Kuwait ’s
tourism sector is undergoing a sea change with a number of new projects in the
pipeline.
These include a new passenger
terminal at Kuwait
International Airport ,
which is being spearheaded by the Kuwait Directorate General of Civil Aviation.
Scheduled for completion in 2016, the US$4.8 billion contract will increase capacity from six million in
2013 to 13 million by 2016, and up to 25 million per annum by 2025, according
to the Centre for Aviation (CAPA).
Nadege Noblet, Exhibition Manager, Arabian Travel Market |
In January this year, local carrier Jazeera Airways reported a 22%
year-on-year increase in passenger movements for the period, following
consecutive increases in both November and December 2014. In particular, the
airline registered a 32% increase on its Istanbul ,
Beirut and Amman
routes and 20% growth on its GCC routes.
A new 160 kilometre-long metro system is also under construction
along with the planned Kuwait National Rail Road System - a 511 kilometre-long
integrated rail network that will greatly enhance domestic and regional travel
opportunities.
Kuwaiti companies exhibiting at this year’s ATM include the
Ministry of Commerce and Industry Tourism Sector, Kuwait Airways, Holidays
Arabia, and first time participant, Kuwait Concierge Company-Call Center WLL.
Major tourism development entities including the Kuwait Touristic
Enterprises Company (TEC), are launching a number of entertainment and sports
projects valued at around US$460 million, while hotel room supply is forecast
to rise by almost one-third, with up to 10,000 rooms scheduled to come online
by the end of 2015.
“Jumeirah opened the doors to its Messilah Beach Hotel and Spa
late last year and several four and five-star resorts are also set to open this
year, including projects from IHG and Millennium while the Government plans to
transform Failaka Island and Boubyan
Island into top leisure
tourism destinations,” Noblet noted.
STR Global’s November 2014 Hotel Market Overview put year-to-date
room occupancy at 51.8% with an average daily rate of US$253.07. Kuwait
currently has around 7,256 hotel rooms with a further 1,958 rooms and up to seven
contracted hotels and resorts in the pipeline.
The Aranca report also highlighted the importance of Saudi Arabian
visitors as a key source market for Kuwait , with leisure and business
travellers making a significant contribution to sector revenues.
“Saudis historically opt for Kuwait as a convenient destination
for short getaways, Eid vacations etc., and the tourism sector is hugely
reliant on this traffic,” said Noblet.
According to MEED intelligence, the top 10 projects currently
under development in the country cover a wide range of activities from a US$416
million investment by the Amir Diwan for the Abdulla Al Salem Cultural Centre
and Tamdeen’s US$206 million Al Kout Mall, to the US$200 million Jaber Al Ahmed
City Olympic Village and the country’s largest retail development to date, The
Avenues, with two further US$150 million apiece phases also making the list.
“This collectively represents
over US$2 billion worth of investment, and ATM will give exhibitors a unique
platform to reach out to existing and prospective partners who will help drive
new business to the country,” said Noblet.
The 2015 event will
also build on the success of last year’s edition with the announcement of an
additional hall adding an additional 2,000 square metres
of floor space as Reed Travel
Exhibitions looks to add to its record-breaking achievements in 2014.
Last year ATM saw total attendance increase by 12% with 33,000 participants
from over 131 countries, and business deals signed worth more than US$ 2.1 billion over the four days.
For more information on Arabian
Travel Market 2015, please log on to: www.arabiantravelmarket.com