GCC has come up with new plan to spend billions on hotels projects this year!Dubai Hotels
Gulf Cooperation Council is again splurging with more cash for new hotel projects as its spending power has increased 11.4 percent since the beginning of this year. According to a report by Research Company (Proleads), a total estimate of $1.17 billions is expected to spend on the pipeline projects despite the global recession.
The report was prepared by Proloeads for The Hotel Show 2010, which is the most important trading and exhibition event for the hospitality sector. According to the subject matter of the research, estimated expenditure on under-construction hotels across GCC will exceed more than $1.17 billion. The competition is severe and across the region and UAE is leading in hospitality sector as it is expected to spend $463.8 million this year.
This is not the biggest surprise but the real surprising news is that Oman will eclipse Saudi Arabia by spending $269.2 million on new hotels projects as compared to the Kingdom’s $ 245.5 million. However, the trend will change in 2011 when Qatar leads the rest of the GCC with an estimated spend of $100.3 million, followed by Bahrain with $65.3 million and finally Kuwait with $31.7 million. This increase in figures is a clear indication that there is no shortage of liquidity.
The active projects which are under construction but are expected to complete by 2013 throughout the GCC, stood at $7 billion. While the figure has increased to $7.8 billion, mainly due to new projects are expected to start in Qatar and Saudi Arabia. This is a right time for the Gulf Region, when the European Countries are trying to reduce their budget deficits and repaying billions in loans and Gulf is powering ahead. Across the Gulf, the trend is on the peak to increase the hotel rooms that is why UAE is spending more on hotels to complete the projects as early as possible.
Written by hotelsdubai