Qatar’s tourism set for 5% growth in 2025
Qatar will have welcomed 4.2 million visitors by end of 2024, and in 2025 that number will be 5% higher
Qatar’s tourism sector is poised for continued growth in 2025, with experts projecting a 5% increase following a strong performance in 2024. According to analysts at ValuStrat, the country has welcomed 3.9 million visitors this year and is expected to reach approximately 4.2 million visitors by year-end.
Anum Hassan, Head of Research in Qatar at ValuStrat, emphasized the significant role of regional tourism in the country’s success. “Tourism from GCC countries played a pivotal role, contributing 44 percent of total visitors – a 43% year-on-year increase,” Hassan noted. Cooler weather during Q3 also bolstered tourism activity, driving higher demand for accommodations.
Baraha Town represents a significant addition to Qatar’s mixed-use developments, featuring 16 buildings that combine retail, office, and residential spaces. The development offers 500 to 580 residential units, including studios and one-bedroom apartments, alongside amenities such as a health club and supermarket.
Despite the tourism sector’s robust performance, Qatar faces some economic challenges. Anthony Fernando, Director of Valuations at ValuStrat, pointed to reduced investor confidence and rising interest rates as factors affecting market dynamics. “This is mainly due to reduced investor confidence, which results in an oversupply of some sectors, as well as the increased interest rates slowing down the rate of borrowing and transacting,” Fernando explained.
However, the outlook remains optimistic. The central bank is expected to introduce new policies in 2025 aimed at easing interest rates, which could help stabilize the market. The residential rental sector may see some improvement as contracts come up for renewal, particularly in primary residential zones.
The retail sector shows promising signs, with increased footfall driving potential rent increases in organized retail zones during the fourth quarter of 2024 and first quarter of 2025. To maintain occupancy levels, landlords are offering incentives such as rent-free periods and fit-out periods for new tenants, particularly beneficial for small to medium-sized businesses facing challenges from high interest rates and shipping costs.
As Qatar continues to leverage its world-class infrastructure and diverse offerings, from shopping destinations to cultural landmarks, the tourism sector remains a key driver of the country’s economic diversification efforts. The sustained growth in visitor numbers and ongoing development of tourism facilities suggest that the country is well-positioned to achieve its projected 5% growth target for 2025.
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