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Qatar’s Hospitality Sector ‘Stable’; Leisure and Staycation Hold Untapped Potential: KPMG
2025-10-19

Qatar’s Hospitality Sector ‘Stable’; Leisure and Staycation Hold Untapped Potential: KPMG

Doha’s hospitality market remains “stable” as tourism demand remains robust in 2025 with steady growth, especially in the leisure and staycation, which hold considerable untapped potential, according to KPMG in Qatar.

Post-2022, the market stabilised with ADR (average daily rate) and RevPAR (revenue per available room) remaining above pre-World Cup levels amid steady growth in visitor arrivals, KPMG in Qatar said in its latest report.

“Qatar’s hospitality sector rebounded steadily post-pandemic, supported by new events, attractions, and tourism initiatives,” the report said.

As of YTD (year-to-date) August 2025, occupancy stands at about 69%, ADR at QR429, and RevPAR at QR300, reflecting a resilient performance, it said, adding Qatar’s hospitality sector continues to sustain “strong” momentum.

February posted the strongest results, with occupancy at 82.5% and ADR at QR490, driven by favourable winter weather and major events such as the Global Champions Arabians Tour and the Web Summit.

January and April also benefited from the pleasant climate, sustaining occupancy levels above 76%, it said, adding March saw the sharpest dip, with occupancy falling to 52.3% and ADR to QR369, reflecting muted demand during Ramadan, when shorter business hours and fewer leisure activities typically curb travel.

From May to August, the market cooled, with RevPAR easing to QR243 in August, reflecting the off-peak summer period when high temperatures typically reduce travel in the region.

KPMG in Qatar said tourism today is no longer defined by a single experience but by a spectrum of segments that cater to different traveller motivations. From sports and eco-conscious tourism to adventure, heritage, leisure, and staycations, the sector is evolving to meet diverse preferences, it said.

“These segments collectively strengthen Qatar’s positioning as a diverse, year-round destination, appealing to international, regional, and domestic travellers,” it said.

On leisure and staycation, it said such developments bring year-round demand drivers that balance Qatar’s tourism sector, particularly during weekends, holidays, and off-peak seasons, ensuring steadier performance.

“The segment holds considerable untapped potential, especially through developing tailored staycation packages for international tourists and residents, families, couples, and young professionals, while also diversifying experiences beyond accommodation,” it said.

By integrating wellness, recreation, dining, entertainment, adventure, and cultural activities into staycation offerings, Qatar can elevate these short breaks into comprehensive lifestyle experiences that strengthen domestic and regional demand, according to KPMG in Qatar.

Qatar is positioned to spearhead new projects and initiatives that align with the latest trends shaping the hospitality and tourism sector, it said, highlighting The West Bay Beaches and Al Safliya Island Development project.

By integrating entertainment and hospitality into a single destination and delivering it through a PPP (public private partnership) model, the project aligns with global trends of diversified tourism development supported by private investment, it said.

“The West Bay Beaches and Al Safliya Island developments go beyond tourism, creating wide-ranging impacts across human, social, economic, and environmental dimensions. By enhancing quality of life, strengthening cultural identity, diversifying the economy, and embedding sustainability, they contribute directly to the objectives of Qatar National Vision 2030,” the report said.
Source: GULF TIMES