Qatar is expected to see a slowdown in economic activity after the soccer World Cup, according to S&P Global Ratings.
(Bloomberg) —
Qatar is expected to see a slowdown in economic activity after the soccer World Cup, according to S&P Global Ratings.
“Oversupply in the hospitality and real estate sectors could somewhat moderate their performance, although we don’t expect this to materially affect banking sector asset quality,” analysts including Trevor Cullinan wrote in a report.
Qatar has been preparing to host the soccer event for 12 years and has estimated the influx of 1.2 million visitors will add $17 billion to its economy. Amid concerns of an accommodation crunch, organizers have leased two cruise ships and will pitch more than 1,000 tents in the desert. A regional shuttle flight service will connect Doha with cities including Dubai, Muscat, Riyadh, Jeddah and Kuwait City.
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The arrival of than a million visitors will see Qatar enjoy “a potential near-term economic gains” and will also highlight the logistics challenges of hosting such an event, which will have a positive impact on neighboring Gulf countries, according to S&P.
“We expect Dubai to be the main beneficiary outside of Qatar, given its geographical proximity and its already well-established tourism offering, airline connections, and multiple-entry tourist visas for World Cup ticket holders,” the report said.
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