The GCC hospitality industry is grappling with a significant shortage of skilled professionals, with a demand for over 90,000 workers by 2026, according to a report by Colliers cited by Khaleej Times.
Lokesh Singhania, director at Alpen Capital, highlighted the urgency of the situation, stating that the UAE and Saudi Arabia are expected to require 82,000 of these skilled workers by 2026. Speaking at the launch of the GCC Hospitality Industry Report, Singhania emphasized the need for proactive measures, including investments in training and education programs to address the shortfall.
Rohit Walia, executive chairman and CEO of Alpen Capital, reiterated the challenges faced by the sector. He noted, “The industry is struggling to recruit and retain adequately trained professionals for a range of roles, from management positions to service staff. Furthermore, increasing competition within the industry is creating pressure on existing infrastructure, resources, and market positioning.”
The Alpen Capital GCC Hospitality Industry Report 2024, released on Tuesday, underscored that the shortage of skilled workers is a significant hurdle to the sector’s growth. This shortage hampers the industry’s ability to attract and maintain trained professionals, which is essential for its expansion.
Looking forward, the report noted that the GCC countries would continue to host major international events, such as the Formula One Saudi Arabia Grand Prix 2024, the Olympic Asian Winter Games 2029, Riyadh Expo 2030, and the FIFA World Cup 2034. These events, coupled with substantial investments in infrastructure improvements like airport expansions, construction of luxury hotels and resorts, and promotion of MICE and corporate tourism, are vital to the region’s ambitious vision for a thriving hospitality sector.
The sector is projected to grow at a rate of 7.5% between 2023 and 2028, reaching an estimated $48.1 billion by 2028, driven by these concerted efforts across all GCC countries.
Specifically, the UAE’s hospitality market is expected to grow at 6.9% annually, reaching $10 billion by 2028, up from $7.1 billion in 2023. This growth is attributed to the UAE’s appeal as a hub for international tourists, bolstered by a well-developed tourism infrastructure. The UAE aims to attract 40 million hotel guests annually and increase the tourism sector’s contribution to the GDP to $122.6 billion (Dh450 billion) by 2031.
The report also noted that multiple-entry visas for Indians and the MICE industry would significantly boost the UAE’s travel, tourism, and hospitality sectors. The international tourist arrivals in the UAE are forecasted to increase by 5% over the next four years, reaching 30.4 million in 2028. Additionally, the UAE’s occupancy rate is expected to rise by 400 basis points to 78.7% between 2023 and 2028, with the average daily rate (ADR) projected to grow 2.2%, reaching $161.1 by 2028, up from $144.5 in 2023.
