Make MENAFN My Home Page
 
  Quotes: US MENA   Enter Symbol: NewsLetter: Search: advanced

Qatar- High land prices deter investors in hospitality  Join our daily free Newsletter

MENAFN - The Peninsula - 19/05/2014
No. of Ratings : 0
Add to Mixx!


(MENAFN - The Peninsula) A significant rise in the prices of plots of land over the last several years has pushed potential investors in the hospitality sector on back foot. Experts from the industry seek government intervention to curb on the unprecedented hike in the prices of land properties, which is discouraging fresh investors due to low rate of returns.

"Massive investments in the hospitality sector have pushed the prices of land properties skyrocketing. As a result, a huge chunk of capital (up to 70 percent) goes to pay for the land alone, which is discouraging fresh investments in the sector," Abdulaziz Al Emadi, a Qatari businessman was quoted by a local Arabic daily as saying, yesterday.

Al Emadi, highlighting the low rate of expected return on investment, said: "There is a kind of race among the businessmen to own a hotel or a luxury property which has caused the expected rate of retrn on investment very dicey. At times, it may take more than a decade to recover the invested capital in the hospitality industry."


He said that aiming at developing and promoting a vibrant hospitality and tourism industry by attracting private investments in the sector, government should intervene and provide some sort of incentives and relief. However, he noted that the government, in line with the National Development Strategy 2011-16 and #Qatar National Vision 2030, is striving to achieve economic diversification by encouraging private investments in the sector, but more needs to be done to safeguard the interests of private investors.

"Most of the investments in the hospitality industry are taking place in building 5-Star hotels and resorts, but it is equally important to develop a significant number of budget-hotels to provide tourists and guests a wide range of options," added Al Emadi.

 
 


The Peninsula




Loading, Please wait....


 





Google

 
 

Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  
 

Middle East North Africa - Financial Network
Arabic MENAFN

Main News
News By Industry
News By Country

Search News
Market Indices
Quotes & Charts

Global Indices
Arab Indices

Commodoties

Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks
 

Algeria 
Bahrain 
Egypt 
Iraq
Jordan 
Kuwait 
Lebanon
Morocco 
Oman 
Palestine
Qatar 
Saudi Arabia 
Syria
Tunisia 
UAE 
Yemen

Weather
Economic Calendar
Financial Glossary


Financial Calculators

RSS Feeds [XML]

Corporate Monitor

Events

Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters


 
© 2014 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help