Tourism Remains ‘Strong Contributor’ to Qatar’s Economic Activity; Q1 Registers 1.5mn Visitors

Tourism remained a “strong contributor” to Qatar’s economic activity, with 1.5mn visitors recorded — primarily from the GCC in the first quarter (Q1) of the year, according to researcher ValuStrat.

Qatar's hotels achieved an estimated occupancy rate of 71% in Q1-2025, ValuStrat said in its latest country report.

The total hospitality stock estimated by Qatar Tourism was 40,787 keys, according to ValuStrat.

Some 68% of the total stock comprised 4- to 5-star hotels, whereas 7.7% was classified within the 1-star to 3-star category, while the remaining 24.3% consisted of hotel apartments.

The report noted that an estimated 845 hotel keys are set to enter the market in 2025, majorly concentrated in the four and 5-star segments.

Travellers from GCC nations accounted for 36% of the total 1.5mn visitors in the first quarter of the year, it said.

“A mix of Eid celebrations, jewellery showcases, desert and food festivals, cruise arrivals, and various MICE activities drew over 1mn visitors during Q1,” ValuStrat noted.

For Q1, 2025, the Average Daily Rate (ADR) was QR445, a drop of 6.4% YoY.

Whilst the Revenue Per Available Room (RevPAR) was QR317, declining 10.7% from Q1 last year, the ADR for 5-star hotels was QR522.

The ADR for 3- and 4-star hotels was QR175 and QR220 respectively, it said.

In Q1, 2025, the Government of Qatar prioritised real estate and tourism, implementing new policies to enhance investment opportunities and streamline regulations, reinforcing its commitment to economic expansion, ValuStrat noted.

Anum Hassan, Head of Research (Qatar) at ValuStrat said: “The first quarter of 2025 reflected a broadly stable real estate landscape in Qatar, with most sectors experiencing either consolidation or modest downward adjustments.”

The ValuStrat Price Index (VPI)-Residential Capital Values held firm at 96.5 points, benchmarked against a base of 100 set in Q1, 2021.

Both apartment and villa indices recorded no significant movement, maintaining levels of 98.7 and 96 points respectively on a quarterly and annual basis, she said.

Retail leasing values “held steady” over the period, while the industrial segment showed encouraging signs of growth, Hassan said.

Rents for ambient and cold storage facilities rose by 2.8% and 3.6% respectively. 

Additionally, recent ministerial directives streamlining business set-up processes for foreign investors have resulted in a notable increase in commercial activity.

“In the months ahead, we anticipate further seasonal adjustments, particularly during the summer period, as the market continues to demonstrate resilience while adapting to evolving dynamics,” Anum Hassan added.