“Gulf Zain 26” spurs economic revival across Kuwait’s business sectors
As Gulf fans remain focused on the “Gulf Zain 26” football championship, which concludes on January 4, business owners in Kuwait from various sectors are closely tracking its economic impact.
The event has become a major point of interest for many economic players, especially as the last days of 2024 showed a noticeable recovery in Kuwait’s economy.
Record growth rates were observed in areas such as sales, occupancy, housing, fund withdrawals, transportation, and currency exchange, and so forth, compared to the same period in 2023.
Concrete Jump
Digitally speaking, the indicators reveal a significant rise in occupancy rates across tourism and trade sectors since the launch of the Gulf Zain 26 football championship on 21 December, and up to 31 December, 2024.
This growth has been evident in hotel chains, hotel apartments, restaurants, transportation, currency exchange, communications, internet services, shopping, and insurance, particularly for cars. In accounting terms, this translates to an increase in local revenues and a boost to the economy across various business sectors.
Furthermore, considering the financial withdrawals during this period, informed sources told Al-Rai that the Joint Automated Banking Services Company, “K-Net,” observed a consistent increase in the volume of withdrawals via point-of-sale devices during the last 10 days of 2024. This growth ranged between 15 and 17 percent.
Notably, the total growth for these operations over the company’s entire fiscal year, ending October 31, 2024, reached approximately 20 percent.
Occupancy Rates
According to reliable sources, occupancy rates in Kuwaiti hotels of various categories, which offer around 16,000 hotel rooms, reached full capacity. While it is common for Gulf families to visit for New Year’s celebrations, this year saw a notable increase in hotel occupancy.
In the final days of 2024, the occupancy rate surged by about 60 percent compared to the same period in 2023, which recorded an occupancy rate of around 40 percent.
Additionally, hotels experienced a 50 percent increase in occupancy during the Gulf Zain 26 Championship, compared to the same event held in Kuwait in 2017.
The significant growth in occupancy also extends to hotel apartments, where many properties saw an increase of up to 100 percent in bookings across the sector.
As a result, occupancy rates at hotel restaurants doubled, ranging between 70 to 100 percent. The phrase “no reservations” became increasingly common, particularly in restaurants renowned for Gulf and Arab cuisine.
Adequacy Rate
The sources noted that dinner reservations for New Year’s Eve reached full capacity, a stable percentage compared to the same period last year. This is because hotels and restaurants typically have a fixed number of seats, which are fully booked for such special occasions.
However, the difference this year is that, in addition to achieving full occupancy, there has been a record growth in reservation requests during this period, compared to the same time in 2023.
According to the law of supply and demand, with the surge in hotel reservations for rooms, restaurants, and events, sources reported a temporary price increase.
Room rates in some hotels rose by about 40 percent compared to regular days, while restaurant prices increased by approximately 25 percent. This rise is attributed to inflation, with higher costs for basic commodities compared to last year. Additionally, the increase in demand has contributed to the higher prices.
Increase Movement
The economic boom extended beyond hotels, as the last 10 days of 2024 saw a significant increase in restaurant occupancy, particularly in Kuwait’s traditional markets, led by Mubarakiya Market. This was accompanied by a notable rise in shopping activity, with foot fall in these markets doubling.
Additionally, there was growth in the activity of all transportation methods, further reflecting the economic surge.
In terms of air traffic and land travel, sources reported a noticeable increase in activity over the past few days. Notably, around 13,000 Iraqis entered Kuwait since the start of the “Gulf Zain 26” tournament. This is a significant indicator, as the majority of visitors to Kuwait during this time of year are typically Gulf citizens, with Iraqis usually not included in large numbers.
In terms of insurance, there was a noticeable decline in the issuance of insurance documents compared to other sectors. This can be attributed to the fact that the majority of visitors to Kuwait during this period relied on public transportation.
Additionally, there is a lower tendency for visitors to opt for car insurance when traveling to a neighboring country, particularly if the visit is a routine or traditional one.
Following is the summary of 10 days business revival in Kuwait:
- 100% hotel occupancy
- 100% New Year’s Eve bookings
- 17% increase in point of sale withdrawals
- 40% temporary price increase
- 50% occupancy growth compared to 2017 tournament
- 60% increase in year-end bookings compared to 2023
