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World Cup to help Qatar’s tourist arrivals reach pre-pandemic levels; tourism, related sectors to benefit: IMF

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The impending FIFA World Cup is set to drastically lift the prospects for Qatar’s tourism, transport, hospitality and catering sectors with the country expected to witness annual visitors reach the pre-pandemic levels of 2mn this year, according to the International Monetary Fund (IMF).
“If the pandemic subsides as expected, the World Cup will be the first major sport event with a large number of spectators, likely to benefit from the pent-up demand,” the IMF said in its Article IV consultation with Qatar.
The World Cup, which is seen as a major growth driver in the near term, could spur visitors’ interest in Qatar, bringing benefits beyond the event itself, it said.
Reportedly, up to 1.2-1.5mn visitors are expected, which could help bring the number of annual visitors closer to pre-pandemic levels of about 2mn, accelerating the recovery of tourism, transportation, hospitality, and catering sectors, which were hit the hardest by the pandemic, it said.
The potential contribution to non-hydrocarbon growth could thus reach the pre-pandemic (and pre-diplomatic rift) level of around 0.8ppts, although the estimate is subject to significant global uncertainty.
The report said the World Cup would provide an opportunity to showcase Qatar’s achievements to the world, potentially attracting more visitors and investors. The infrastructure built can be leveraged to promote diversification and benefit the economy for years to come.
Qatar is committed to organising the first carbon-neutral FIFA World Cup through the use of solar-powered stadiums and water and energy-saving cooling and lighting technologies.
Massive investments have been made to prepare for the event, supporting Qatar’s growth over the last decade, it said, adding the event itself is expected to boost various service sectors in Qatar, with positive spillovers to the GCC (Gulf Co-operation Council region).
“Many of the visitors will likely stay in neighbouring countries within a short flight to Doha, such as Oman and the UAE. This will spur demand in these countries and could prompt visitors to stay longer either in Qatar or in neighboring countries for the winter holidays,” the report said.
Cities like Dubai with extensive hotel infrastructure are likely to benefit the most. Also, the end of the diplomatic rift could facilitate intraregional travel, benefiting Qatar Airways and other airlines, especially those from the GCC.
Visitors’ spending during the event will increase revenues from excise taxes and VAT (value added tax) in countries that have implemented them, IMF said.

 



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