Kuwait forecast to invest $1bn in tourism sector

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The travel industry in Kuwait is about to see a surge in its operations. At the recently concluded Arabian Travel Market (ATM) event, there was ample evidence of the surprises that the travel industry in Kuwait is going to spring. The administration has set aside a total sum of 1 billion USD for this purpose spread over the years till 2025. What this means in financial jargon is a 4.3 percent growth per annum.   

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The initial boost and indicator of this interest in the travel industry was first felt in 2015 when the country took on expansion projects of its transportation sector namely the airports. There was big surge in passenger volume experienced in 2015 and this led to the shift in focus towards the travel industry. The revenue earning from the travel industry was calculated to be about 1.5 per cent of the total GDP for the year 2015. Even with the low being experienced in the oil price the travel industry is expected to return about 0.3 per cent in the coming years up to 2025.

 The investment would cater not just for travelers coming into Kuwait but even for demands and desires of the domestic travel sector. Kuwait has always generated healthy revenue earning from its domestic travel activities. In the year 2014 the revenue earning from domestic travel had been pegged at 88.1 percent of the total revenue earnings from the travel industry. This growth has been predicted to increase by 6.4 percent per annum till 2025.

 The associated travel and tourism infrastructure that is going to experience a boost are the hotel industry. There are a large number of projects underway to add both luxury as well as budget hotels to cater for tourist requirement. Study has indicated that more tourists prefer the budget hotel rather than the exclusive range of hotels. Four Seasons is one brand that has plans to open up their line of properties in Burj Alshaya of Kuwait. The number of property that they plan to establish has been stated as 263. The project has commenced and expected to end by 2016. There is also Mercure Kuwait who has projects to end by 2015. The Grand Hyatt is also set to have their line of property in Kuwait established by 2020 and the Hilton Olympia Kuwait by 2019. Novotel Sharq has a 160 room property being set up to be ready by 2017. Rotana properties are also expected to be established by 2018 with a 200 room capacity.

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 People of importance in the Travel industry at Kuwait have mentioned about the realization that tourism in Kuwait has its high potential. That the potential can be turned into revenue only with increased capacity in accommodating the tourists. The broad avenues which Kuwait has to offer its tourist guests need not much amplification. It being the most liberal state as far as ideologies go in the Arabic world makes it the most sought after place of visit for both luxury as well as business class.