$200 billion hospitality and leisure projects underway in GCC

Dubai / Emirates Business

Over 2,000 hospitality and leisure projects are currently underway in the GCC with a combined estimated value of $200 billion, event organisers announce ahead of The Big 5 next month. An estimated $64 billion worth of related projects in the construction pipeline, coupled with increasingly relaxed visa policies highlight a developing focus on strengthening the
regional tourism ecosystem.
Hospitality and leisure markets in the UAE and Saudi Arabia currently make up 74% of all related projects in the GCC region. According to the “GCC Hospitality and Leisure & Recreation” report by BNC Network for The Big 5, the expanding tourism sector is a key driver for increasing hospitality and leisure projects in the region.
By adding hospitality and leisure projects to their portfolio, and developing the tourism sector in their countries, GCC governments are actively moving toward economic diversification and
sustainable growth. Investments in the hospitality and leisure
projects as a result, are adding significant growth the construction sector as a whole.
Mega developments in the top ranking countries include the Hospitality District in Dubai’s Mall of the World (UAE) and Phase 1 of the Red Sea Touristic Development in Tabouk (Saudi Arabia). Behind the UAE and Saudi Arabia, Oman has the third highest value of hospitality and leisure investment with the Tourism Resort project in Duqm being valued at $20 million.
Abu Dhabi and Dubai account for approximately 81% of all hospitality and leisure projects in the UAE, with the country as a whole being listed by BNC Project Intelligence as having the most competitive tourism sector in the GCC.
With the upcoming Expo 2020 the UAE is expected to attract an estimated 25 million visitors between October 2020 and April 2021. Additionally, under the 2020 Tourism Strategy, The Department of Tourism and Marketing in Dubai aims to target 20 million overnight visitors in 2020.
Looking at the report, Portfolio Event director for The Big 5 Josine Heijmans evaluates that “the high number of hospitality and leisure projects being launched in the GCC will continue to positively drive the regional construction sector as a whole. In an effort
to support mega-events as Expo 2020 and developing tourism strategies, demand will remain strong for the innovative products and sustainable building solutions all on display at The Big 5 2017.”