A recent study revealed that Kuwait recorded the lowest participation of the tourism sector in the GDP at the level of the Gulf Cooperation Council countries, as the average contribution of “tourism” to the GDP is only 6.1%, compared to 10.8% in the UAE, 9.8% in Bahrain, and 9.7% in Qatar, 9.4% in Saudi Arabia, and 6.8% in Oman.
While the rate of Kuwaitis spending on foreign tourism is estimated at more than 4 billion dinars annually ($14 billion), equivalent to about 11% of the gross domestic product, the study, prepared by the Tourism Enterprises Company and recently reviewed by the Council of Ministers, urged the need to limit tourism leakage abroad, while the country’s annual revenues from tourism did not exceed the level of 300 thousand dinars only, reports Al-Qabas daily.
The “tourism projects” have finished drawing the outlines for the establishment of the entertainment city in a way that achieves a viable economic return for the state, and the cost of implementing the project is estimated at about 200 million dinars, of which 120 million are capital expenditures, and 80 million are for infrastructure, noting that the implementation of the project needs a legislative amendment with an exploitation period of 50 years instead of 3 years.
It is expected that the project will contribute to the GDP of about 85 million dinars in 2035, to provide about 4 thousand new job opportunities, and the number of potential visitors to the entertainment city will reach 900 thousand by 2030, assuming that the internal rate of return will reach from 11% to 13%, assuming the lease term extends to 50 years.
The study confirmed that there are two options for the government to implement the project, namely:
— A legislative amendment to the State Property Law that the period of offering to exploit the site be 50 years or more, and then it is possible to achieve an internal return of 15%, so that it is attractive to investors in the private sector.
— Injecting the value of the capital required by the state (building and then contracting with an international operator), noting that Wafra Real Estate Company has expressed its desire to invest in the project.
Sections of the new entertainment city will include
► Amusement parks
► Sports courts
► Hotel
► Water Park
► Sheikh Zayed Park
► Bird watching area
► Forest huts
► Retail and restaurant area
► Picnic area
► Electronic games hall