Page 64 - Kuwait-Three-Years-Business-Outlook-2019-2020-2021

KHOA

Conclusion

➢ The World Travel and Tourism Council says that the direct contribution of Travel & Tourism to GDP is expected to grow by

4.8% pa to KWD1,668.2mn (3.0% of GDP) by 2028.

➢ As per STR Kuwait is the only key market in the GCC with negative hotel demand for 2019 so far . A tough beginning to the
year was expected as 2018 set a relatively high benchmark for the same period with quite a few events and the related
government spending involved.

➢ In the current market, the rate agreement is considered critical for hotels to maintain the rates, revenues, and profitability,

given the level of current and future supply of hotels within the relatively small market. (See STR section page number 38.)

➢ Kuwait Market ADR has decreased by -4% from last year .Since 2017 the ADR of Kuwait Market is declining on average -2 to

-5% respectively .

➢ KHOA expect the Kuwait Outlook for the next three years will end up between scenario 2 and/or 3.

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