Qatar Hotel Profitability Challenged

The increase in number of hotels in Qatar is making it more difficult for the hotel industry to maintain profitability in the wake of fierce competition.   Figures released by the Qatar Tourism Authority (QTA) show the number of hotels has increased from 51 in 2008 to 58 in 2009.  The number of five star hotels increased from 12 in 2008 to 15 in 2009, and four star hotels increased from 13 to 17,

Hotel profits last year dropped slightly to QR2.07 billion, down from QR2.12 billion in 2008. Profits of five star hotels went down slightly from QR 1.6bn in 2008 to QR 1.59 bn last year. Profits of four star hotels fell from QR521.8m in 2008 to QR 488.41m in 2009. Chairman of QTA, Ahmed Abdullah Al Nuaimi, said the country’s hospitality industry faces difficult challenges and must look for new and innovative ways to keep earnings up and attract visitors.  He said “The hotels should hold special events and organize promotions to attract more customers.”

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