Introduction
Attaining economic growth and development is one of the fundamental macroeconomic issues that governments pursue. Countries can assess their economic performance by examining the trend of their Gross Domestic Product [GDP] (Gitman & McDaniel 2008). The level of GDP is subject to the occurrence of business cycles. A steady increase in a country’s level of GDP indicates a strong economic performance and hence its prospects.
The effectiveness with which a country grows its GDP is influenced by the government’s focus in stimulating the various components of the GDP, which include consumption, investment, and the net exports. The consumption variable is fundamentally one of the most effective dimensions that a country can pursue in its quest to achieve economic growth. An increase in the level of government and individual consumption or expenditure within a particular economic sector translates into a multiplier effect hence culminating in economic growth of other sectors (Hede 2007). Gitman and McDaniel (2008, p.43) argue that an ‘increase in business activity results in rising output, income and prices’. Therefore, the significance of stimulating consumption in diverse economic sectors should not be undervalued.
Governments should take advantage of the opportunities available in the global arena. Therefore, the importance of establishing relations with other countries through economic and cultural aspects is essential. Hosting hallmark events is one of the most effective avenues that governments should pursue in promoting economic growth (Kavetsos & Szymanski 2010). The past decades have been characterised by growth in the value of social and cultural events in countries economic growth. This phenomenon is illustrated by the degree of competition amongst countries bidding to host mega sporting events such as the FIFA World Cup and Commonwealth Games (Dembek & Wloch 2012).
Bayar and Schaur (2014) emphasise that countries pay a substantial amount of money to host such events. This trend has generated interest amongst scholars on the value of mega sports event to a country’s economy. One of the assertions made by scholars is that the events present an opportunity for countries to signal their commitment to trade openness. The hosting of the 2010 FIFA World Cup in South Africa led to remarkable improvement in the country’s reputation. Briedenhann (2011, p.5) emphasises that such ‘events are perceived by government and its agencies as an avenue through which to garner economic, employment and tourism benefits’. Thus, the mega sports event boosts a country’s visibility in the international market, which underscores its economic relevance. Subsequently, the likelihood of promoting international trade is improved remarkably (Nauright 2013).
Nevertheless, some scholars argue that the mega sports events may lead to negative outcomes such as social degradation within the host country (Briedenhann 2011). However, it is the perceived economic gains associated with such events form the rationale for countries to bid for hosting such events. Subsequently, the host governments are ready to commit a substantial amount of finance in facilitating such events (Kruger & Heath 2010).
Tourism comprises a major catalyst in a country’s socio-economic growth (Information Resources Management Association 2015). The sector does not only lead to economic expansion through an increase in the level of investment but also provides a country an opportunity to brand itself in the international arena (Damster & Tassiopoulos 2005). The tourism sector ranks amongst the greatest beneficiaries for countries hosting the mega sports events. Therefore, governments should consider leveraging on hosting the mega sports event as an opportunity to improve their tourism sector. Qatar tourism sector is likely to benefit from the country’s successful win of the bid to host the 2022 FIFA World Cup.
Problem statement
Until recently, the Qatar was misconceived as a business-only tourism destination. Moreover, the country did not have the adequate understanding about the significance of the tourism sector in promoting the country’s sustainable development. Legislative barriers also limited the tourism sector (Baggio 2011). However, the government has increased its commitment in promoting the tourism sector as evidenced by the formulation of the Qatar National Tourism Sector Strategy 2030 by the Qatar Tourism Authority. The strategy entails a comprehensive series of projects, programs, projects, and policies that are intended at promoting the country’s tourism sector to achieve long-term growth. The strategy is aligned with the best practices in the tourism sector and is expected to minimise the country’s overdependence on hydrocarbon resources as a source of the country’s economic growth. Moreover, the plan is projected at perpetuating the country’s culture, traditions and values through tourism. Despite the fact that the Qatar tourism sector has experienced remarkable growth in the recent past, the country can explore other avenues to improve the potential of the tourism industry (Qatar Tourism Authority 2015).
The Qatar industry can be defined to be in the growth phase. A press release issued by the Qatar Tourism Authority showed that the total number of tourist arrivals in Qatar increased to 1.42 million during the first half of 2014, which represents an 8% growth. Additionally, the number of tourists from the Gulf Cooperation Council countries visiting Qatar account for 38% of the total number of tourists in the region (Just Here 2015). However, the degree of sustainability within the country’s tourism sector will be influenced by the efficiency with which the Qatar Tourism Authority undertakes tourism planning.
The country’s opportunity to host the 2022 World Cup will present an opportunity for the tourism sector to grow. It is projected that over 400,000 fans will attend the event (Qatar Tourism Authority 2013). Subsequently, the demand for the country to host the tourists during the event is critical. Thus, the government will be required to commit a substantial amount of resources in developing the requisite infrastructure. The challenge for the Qatar Tourism Authority is to ensure that the increase in the level of tourism arising from hosting the 2022 World Cup is sustainable. Therefore, the Qatar Tourism Authority will be required to ensure that effective planning is undertaken. This aspect may entail adjustments to the current tourism strategy. Through this approach, it will be possible for the Qatar Tourism Authority to hasten the attainment of the desired vision 2030. Therefore, the challenge is for the Qatar government to establish a link between the requisite tourist systems.
One of the aspects that the Qatar government should consider in its tourism planning process entails leveraging on hosting the 2022 World Cup as an opportunity to establish a link between the core industries of the tourism sector. These sectors include the transport sector, travel organiser sector, attraction sector, accommodation sector and the destinations organisations sector (Getz, Anderson, & Larson 2007). Failure to establish a link between the tourism planning process and the opportunity to host such a mega event might limit a country’s effectiveness in effectively using the tourism sector in catalysing the country’s economic growth. Furthermore, it is imperative for the Qatar government to consider the most effective approaches through which hosting the 2022 World Cup would contribute to the development of a sustainable tourism sector. Such considerations will culminate in enhancing the country’s economic performance.
Aims and objectives
The aim of this study is to investigate on the innovative approach of Qatar Tourism planning for the World Cup 2022 and its future.
To achieve this objective, the study will focus on achieving the following objectives.
- To evaluate if Qatar has made the right choice in bidding to host the 2022 World Cup
- To analyse the current Qatar economy as an independent country and its rationale for hosting the World Cup games.
- To investigate the requisite innovative issues that Qatar should consider in its tourism planning in the preparation for the 2022 World Cup.
Research questions
To actualise the above research objectives, the following research questions will be taken into consideration.
- Did Qatar make the right choice by bidding to host the 2022 World Cup?
- What is the current state of the Qatar economy and the economic rationale for hosting the 2022 World Cup?
- What are the requisite issues that the Qatar government should consider in its tourism planning in the preparation for the 2022 World Cup?
Limitations of the study
The study will involve an evaluation of the impact of hosting the World Cup to the Qatar economy. To achieve this goal, the study will specifically target on the tourism sector. Subsequently, the study is limited to planning in the tourism sector and its future for hosting the event. Moreover, the study is based on secondary research by reviewing documented literature related to the topic under investigation. To overcome the limitation associated with relying on secondary research, it is ensured that the data is only gathered from credible sources. The rationale for effective selection of the data sources is to improve efficiency in managing the time and cost required to undertake the study successfully.
Significance of the study
The study’s findings will be of significant value in Qatar’s quest to develop a sustainable competitive advantage in the tourism sector. Currently, Qatar has formulated a comprehensive plan to achieve economic growth through promotion of the tourism sector. The country’s winning of the bid to host the 2022 World Cup presents a great opportunity for the country to improve its tourism sector. The study will be of critical importance to the Qatar government in understanding the relationship between hosting mega sports event and stimulating sustainable economic growth. This goal is achieved by reviewing past literature on how hosting mega sports event has contributed to strong economic performance in countries such as Germany and South Africa. The study will provide the Qatar Tourism Authority insight on the fundamental aspects that should be considered during the planning process to exploit the available opportunities. Therefore, the government will effectively restructure the tourism sector to achieve sustainability.
Theoretical and conceptual framework
Industries or economic sectors progress through diverse stages that include introduction, growth, and maturity and decline (Butler 2006). The belief that tourism destination progresses through a lifecycle indicate that it is a living entity (Jago et al. 2010). Numerous studies have been conducted to document together with profiling the various life stages and the respective degree of vitality. During the initial states, the tourist destinations are characterised by enormous promise. The destinations generally become unproductive and unhealthy during the decline or aging phase hence culminating in premature demise (Kim, Gursoy, & Lee 2006). The decline phase entails the reduction in the tourism resource base and its associated competitive advantage. This aspect means that the destination’s long-term sustainability is compromised.
Mason (2012, p.11) corroborate that attempts ‘to improve the quality of life of the host community, to provide high-quality visitor experiences and to maintain a vibrant and supportive environment, become increasingly difficult to achieve and maintain’. The effectiveness of the Tourism Area Life Cycle theory in tourism planning is underlined by its application in the rejuvenation of the Danxia Mountain as a tourism destination, which had declined considerably during the early 1990s (Butler 2006). However, some critiques argue that the stages associated with tourism are only hypothetical and not applicable to all tourism destinations. This paper argues that destination evolution through the stages of exploration, growth and development, stagnation or decline, consolidation, and rejuvenation are critical in the process of undertaking tourism planning.
The growth of the Qatar tourism sector experienced over the past decades underlines the existence of high prospects in the future. However, it is imperative for the Qatar Tourism Authority to think beyond the numbers. On the contrary, the QTA should appreciate the importance of integrating strategic shift towards quality tourism. To achieve this goal, the Qatar government should emphasise on aspects such as high standards, innovative developments, tourist attraction and hospitality. This aspect will play a critical role in promoting Qatar image a competitive tourism destination.
Based on the above aspects, this study is based on the Tourism Area Life Cycle model. The rationale of the TALC model is based on the view that tourism operates in an environment that is increasingly becoming dynamic and hence the need to take advantage of the opportunities presented by the broader environment should not be ignored (Waugh 2000). Through the TALC model, it is possible for the Qatar Tourism Authority to achieve sustainable and long-term performance. In the process of undertaking tourism planning how to exploit the opportunities presented by hosting the 2022 World Cup, it is essential for the Qatar Tourism Authority to ensure that the respective components that constitute an efficient tourism sector are taken into consideration (Presenza, Sheehan, & Ritchie 2005). This research conceptualises that the sustainability of the Qatar tourism industry depends on the country’s effectiveness in establishing a link between the diverse sectors of the tourism sector (Waller, Trendafilova, & Daniell 2014). It is critical for Qatar to take into account the diverse sectors to take advantage of the opportunity to host the World Cup in its tourism planning. Through this approach, the future performance of the tourism industry will be improved hence promoting the country’s economy.
The conceptual framework hypothesises that the efficiency with which Qatar successfully exploits the opportunity presented by hosting the World Cup in promoting its tourism sector will be influenced its effectiveness in establishing a link with the diverse sectors of the tourism industry.
Literature Review
Introduction
Chapter 1 highlights tourism as a critical component in Qatar’s future economic performance. Moreover, the chapter identifies Qatar’s winning of the bid to host the 2022 World Cup as an opportunity to promote the sustainability of the tourism industry. Consequently, the country’s economic performance will be promoted. However, to exploit the opportunities presented by hosting the mega sports event, it is imperative for Qatar Tourism Authority to undertake effective tourism planning. This aspect will contribute to the strengthening of the country’s economy.
This chapter entails a critical review of past literature on economic rationale associated with bidding a mega sports event such as the World Cup. Therefore, the chapter entails an extensive review of the foundations associated with hosting a mega sports event. The chapter is organised into different sections.
Economic and tourism impacts of hosting mega sports event
Fourie and Santa-Gallego (2010) accentuate that despite the fact that different factors contribute to sector’s growth; one of the distinguishable sources of the growth entails global events. The mega sports events not only attracts the global audience, but have also remarkably shaped the global tourism patterns (Lee 2009). Hosting such events contributes to the creation of lasting legacies on the host country (Maennig 2012). Rogerson (2009) supports this view by affirming that winning to host a major sports event is a unique opportunity in the future of a country’s tourism economy.
One of the fundamental contributions relates to the establishment of various infrastructural developments (Smith & Stewart 2007). The successful hosting of a mega sports event is influenced by the quality of infrastructure (Briedenhann 2011). Moreover, Westerbeek et al. (2005) emphasise that effectively integrated infrastructural developments comprising of transport and communication network, accommodation facilities and physical venues are essential for a mega sports event. The rationale of such developments is to ensure that the fans and athletes attending the mega sports event attain a high level of convenience and satisfaction (Crowther 2010). However, the benefits associated with such infrastructural developments are not only limited to the period within which the event is held but also benefits the host community in the future (Maennig 2007).
Available literature indicates the existence of variation with regard to the contribution of mega sports on the economy. Preuss (2004) emphasises that the gains emanating from mega sports events are ambiguous. Similarly, Lee (2009) emphasise that the gains arising from mega sports events are doubtful. This aspect indicates the existence of debate on the costs and benefits associated with hosting mega sports events. However, Westerbeek et al. (2005) argue that mega sports events are associated with quantifiable tourists’ behaviour. Access is an essential element in improving the effectiveness of sports facilities during the sports events. During the 2010 World Cup, South Africa prioritised the construction of the transport system. This aspect entailed upgrading the road and airport system (Briedenhann 2011).
The availability of sufficient accommodation is another major factor that is critical in the process of planning to host a mega sports event. Nevertheless, Briedenhann (2011) warns that countries hosting a mega event should be cautious not to over-develop the accommodation facilities during the mega sports event in areas that are not likely to be characterised by sustainable tourism growth in the future. Their opinion is that such developments would not translate into sustainable profitability after the event is over (Briedenhann 2011). Therefore, it is imperative for the Qatar Tourism Authority to identify the sustainability of the accommodation facilities established to facilitate the hosting of the 2022 World Cup.
Tourism expectations of mega sports events
During the previous World Cup held in South Africa, it was projected that approximately 460,000 international visitors would travel to South Africa for the event. The total fan base during the event was expected to be approximately 3.5 million fans (Melwani 2009). The senior government officials in South Africa were of the perception that the event would culminate in tourism boom hence generating approximately $ 1.25 billion (Melwani 2009). However, Preuss (2004) criticises the projections on the number fans attending such events. In his opinion, Preuss (2004) argues that the projections are optimistically estimated. Moreover, the government officials charged with the responsibility of planning the mega sports events did not take into consideration the possibility of crowding out effect on the level of normal tourism within the country (Dwyer, Forsyth, & Dwyer 2010). Maennig (2007) identifies the crowding out effect on the tourism sector that occurred in Germany during the 2006 World Cup. The degree of accommodation occupancy declined in some of the country’s major cities such as Berlin and Munich by 11.1% and 14.3% respectively compared with the degree of occupancy in 2005 (Maennig 2007).
Despite the existence of divergent views on the possibility of the crowding-out effect, it is possible for countries to promote the level of tourism by attracting domestic and international tourists during the mega event (Dwyer, Forsyth, & Spurr 2005). However, this goal can only be achieved if the host country undertakes extensive pre-event promotion (Koh & Jackson 2006). Through pre-event promotion, it is possible for the Qatar government to improve the attractiveness of the country as a tourist destination during and after hosting the event (Siaegfried & Zimbalist 2006). Pre-event promotion is further considered as an effective approach through which a country can increase the length of stay and the likelihood of the tourists visiting different tourist destinations within the host country (Bowdin et al. 2006). Thus, the possibility of the country experiencing remarkable future flow in the number of tourists will be improved considerably. Westerbeek et al. (2005) identify this phenomenon as the ‘flow-on effect’. The outcome of this occurrence is that the economic benefits associated with hosting the mega event will be distributed to other regions of the country that were not directly involved in hosting the event because of the legacy created (O’Toole 2010).
The mega sports events present the host country a unique opportunity to position itself in the global market because of the extensive television coverage (Gratton, Shibli, & Coleman 2006). The FIFA World Cup is identified as one of the mega sports events watched by billions of people around the world. Approximately 4 and 5 billion people watched the 2004 FIFA World Cup in Greece, which presented a free advertising opportunity for Greece hence promoting its future tourism prospects (O’Brien 2006). Similarly, the 2000 Olympic Games held in Sydney improved Australia’s tourism marketing effort by 10 years (Westerbeek et al. 2005). In spite of the marketing opportunity associated with hosting the mega event, Appel (2008) emphasises that the tourism marketing and media coverage of the host country must be innovatively designed and managed. The South African government was extensively criticised for not taking advantage of the media coverage associated with the mega sports event (Sulelo 2009).
Economic growth and employment generation
The mega sports events are identified as a major catalyst in a country’s economic growth (Smith 2006). Therefore, hosting the mega sports event creates an opportunity for countries to achieve their macro-economic growth and development (Korr & Close 2008). The probability of attaining balanced economic growth emanates from the fact that the opportunities with regard to local entrepreneurship are stimulated. Nabli (2007) affirms that the small and medium enterprises have an opportunity to access the international market by taking advantage of the trade opportunities associated with hosting such events. Canela and Figini (2011) affirm that hosting the World Cup contributes to improvement in the degree of investor confidence. The hosting of the 2006 FIFA World Cup led to a 29% decline in the level of unemployment in Germany. On the other hand, net exports grew by 14% because of increase in the level of leisure and business tourism (Appel 2008; Ahler 2006).
Analysis of the Qatar economic performance
Economic growth is a critical component in a country’s long-term sustainability. Hubbard, Garnett, and Lewis (2014, p.346) define economic growth as ‘the ability of an economy to produces increasing quantities of goods and services’. A country characterised by a slow rate of economic growth fails to improve its citizens’ living standards (Getz 2008). The rate of economic growth differs significantly across different countries. Contraction of a country’s economic performance may culminate in a reduction in its economic growth. Koh and Jackson (2006) affirm that maintaining the level of employment is one of the most effective ways through which a country can promote its economic growth. Some of the most successful countries have achieved remarkable economic growth because of their commitment to improve the level of employment (Hubbard, Garnett, & Lewis 2014).
Qatar ranks amongst the fastest developing countries in the Gulf Region (Deloitte 2015). The country’s economy has relied on the production and exportation of hydrocarbon products because of the enormous oil reserves. However, the Qatari government has over the past few years focused on diversifying its economy by focusing on other economic sectors such as the tourism sector. The rationale for this shift arises from the disruption of the country’s economic performance due to global economic changes. Available literature shows that Qatar has experienced a remarkable fluctuation in the rate of GDP growth (Deloitte 2015). Graph 1 indicates the performance of the country’s annual GDP growth rate. From the graph, it is evident that the country GDP growth rate has fluctuated significantly between 2013 and 2015. During the 3rd quarter of 2015, the country’s GDP increased by 2.8%. Between 2004 and 2015, the country’s average annual rate of GDP growth was estimated to be 3.65%. The country’s highest rate of GDP growth was experienced in 2008, which averaged 14.40%. However, during the 2nd quarter of 2008, the rate of growth declined to -23.20% (Trading Economics 2016).
Apart from economic growth, the other macroeconomic goal that governments are required to pursue relates to ensuring stability with reference to the level of employment. It is imperative for governments to unlock their country’s potential to achieve economic growth by stimulating the rate of employment. A low level of unemployment is critical in stimulating a country’s economic performance. This aspect arises from the fact that the consumers’ purchasing power is improved considerably hence stimulating the level of consumption across different economic sectors (Qi, Gibson, & Zhang 2009). The ultimate effect is that the consumers’ purchasing power is improved considerably. The graph below illustrates the economic performance of Qatar with regard to the rate of unemployment.
Despite the fluctuation in the rate of unemployment, Qatar has managed to maintain the rate of unemployment within a single digit range. This aspect indicates that the government is extensively committed to the reduction of the rate of unemployment. The Qatar rate of unemployment was lowest in 2013 and 2014 at 0.3 and 0.2 respectively (Trading Economics 2016). Solanki and Sen (2015) indicate the existence of a positive correlation between the growth in the rate employment and the level of public expenditure. Between 2004 and 2005, India increases the level of public expenditure as a percentage of the country’s GDP by 15.61%. Subsequently, the level of employment grew by 2.62% (Solanki & Sen 2015). Considering the relationship between public expenditure and the level of employment creation and GDP growth, it is imperative for the Qatari government to consider the public expenditure that will be undertaken in establishing the requisite infrastructure as an opportunity to stimulate the country’s future economic growth.
Conclusion
The literature review conducted is limited to the hosting of a mega sports event and its economic contribution to a country. The review specifically focuses on the tourism sector. The literature review identifies winning the bid to host a mega sports event such as the FIFA World Cup as a unique opportunity to promote economic growth. The review shows that winning such a bid contributes to an improvement in the host country’s visibility in the global market, and thus the level of international trade. However, hosting mega sports event is strongly correlated with a country’s economic growth because of the direct and indirect impacts. The review identifies the tourism as one of the economic sectors that can greatly benefit from hosting a mega sports event. Therefore, the need for the host government formulating effective approaches in the tourism sector to leverage on the available opportunities should not be ignored. Currently, Qatar has experienced remarkable economic improvement over the past few decades. However, the country is re-evaluating its overreliance on the hydrocarbon sector. One of the areas that the government is focusing on entails the tourism sector.
Methodology
Introduction
This study aims at evaluating to investigate on the innovative approach of Qatar Tourism planning for the World Cup 2022 and its future. The study’s rationale arises from the recognition of the valuable opportunities that the firm’s tourism sector can acquire by taking advantage of the country’s opportunity to host the World Cup. Hosting mega sports event presents an opportunity for countries to promote their tourism sector. However, the effectiveness with which this goal is achieved is influenced by the commitment of the parties responsible of promoting the tourism sector ensuring that the appropriate issues are taken into consideration in the strategic management process. This approach will contribute to enhancing the level of sustainability within the tourism sector.
This paper intends to achieve the research objective by evaluating the innovative approaches that the Qatar government can integrate into its planning process to take advantage associated with hosting the 2022 world cup. The research further evaluates the benefits that will emanate from hosting the world cup hence contributing to the sustainability of the tourism industry. This chapter outlines the methodological approaches that have been taken into account in the process of conducting the research study. The chapter outlines the research design and its justification, method of data collection, data analysis and presentation.
Research design and justification
This study is based on the qualitative research design. The rationale of selecting this design is to gather sufficient data on the implementation of the concept of the contribution of hosting a mega sports event such as World Cup to the tourism sector and hence the overall performance of the economy. Therefore, the research study can be defined as exploratory (Yin 2012). The study intends to use the exploratory research as an approach of gathering insight on the impact of hosting the World Cup on the country’s economy (Saunders, Lewis, & Thornhill 2007). McNabb (2015) emphasises that exploratory research is very effective in analysing a particular situation. The exploratory research approach improves the efficiency with which the researcher understands the critical issues associated with the problem or issue under investigation. According to Sreejesh, Mohapatra, and Anusree (2014), exploratory studies are conducted for three main reasons, which include analysing a problem situation, to evaluate alternatives and to discover new ideas. To achieve this outcome, the exploratory research design is supported by entrenching a case study on the Qatar tourism industry. Therefore, the case study approach provides the researcher an opportunity to examine the specific components related to tourism planning in Qatar.
Data collection
The data used in conducting a research study influences the value of the study’s findings in making relevant recommendations on how to improve the situation under investigation. Subsequently, the relevance of the study to the target audience is reduced significantly (Smith 2008). To overcome this challenge, effective selection of the sources of data is essential. The data used in conducting this study is sourced from secondary sources, which entail obtaining data from previously documented sources such as journals, magazines, and online articles. Church (2001) corroborates that secondary data is the most common source of data used in undertaking exploratory research. The choice of secondary sources of data is informed by the ease associated with collecting data from such sources. Rao (2008) accentuates that secondary sources improve the efficiency with which researchers undertake research data. Rao (2008) cites resource scarcity as one of the major hindrances in the process of conducting a research study.
To improve the quality of the research study, the research data is sourced from literature such as press releases on hosting the 2022 World Cup. The process of collecting data will be achieved by sourcing data from the internal sources such as the Qatar Tourism Authority. Through this approach, the credibility and reliability of the research data improve substantially. Moreover, the reliability of the research finding in making decisions on tourism planning and its future is improved. In addition to internal sources, the secondary sources of data further entail external sources such as analysis by industry experts and from periodicals.
Data analysis and presentation
The research data collected from previously documented sources is both qualitative and quantitative in nature. The data obtained from the secondary sources is evaluated using secondary analysis. Smith (2008) asserts that the secondary data analysis method involves re-analysis of existing data. The secondary data analysis is implemented by entrenching the thematic analysis approach. Long-Sutehall, Sque, and Addington-Hall (2010) define this method as a technique in which the researcher examines the collected data and identifies the information that is relevant to the research questions and objectives.
The secondary data analysis method provides investor an opportunity to re-interpret the secondary data. Long-Sutehall, Sque, and Addington-Hall (2010, p. 336) support the view that the ‘re-use of archived datasets and secondary analysis has gained interest and momentum due to the recognition that many qualitative datasets offer narratives that discuss issues related to the primary research questions, but which have never been analysed’. The secondary data analysis approach creates an opportunity for the generation of new knowledge on tourism planning with respect to its sustainability.
In the process of analysing the data, the study focuses on qualitative and quantitative data analysis approaches. The data collected is analysed and presented using tables and graphs. Using these techniques, the paper has been in a position to review and re-analyse the secondary data collected. Subsequently, the re-analysis of the data collected provides insight on how to Qatar government can utilise the opportunities associated with hosting of the World Cup.
Conclusion
The implementation of the above methodological approaches and techniques will lead to the generation of critical insight from the secondary data collected. Subsequently, the study will make a conclusive analysis on the rationale of Qatar’s bid to host the 2022 World Cup and its contribution to the country’s economy. Based on the analysis of the data collected, the capacity of the Qatar government through the Qatar Tourism Authority to undertake innovative tourism planning will be improved significantly.
Results and Discussion
Introduction
The adoption of the descriptive research design and the secondary sources of data in the study have led to the generation of a substantial amount of data on the research topic. The data collected has illustrated the prevailing situation in Qatar in its quest to prepare for the 2022 FIFA World Cup coupled with how it intends to use the event innovatively to plan for the future of the tourism industry. This chapter presents the results, analysis and discussion of the study’s findings. The analysis focuses on answering the research questions and hence the study’s objectives.
Results and analysis
An evaluation of different secondary data shows that the Qatar tourism sector is a critical component of the country’s economic growth. The Qatar government appreciates the contribution of the tourism to the country’s GDP. The sector’s contribution to the Qatari economy has improved considerably over the past decade as illustrated by graph 3 below.
Table 3
Graph 3Graph 3 shows that the largest contribution of the tourism sector to Qatar’s GDP was experienced in 2005. The percentage contribution reduced significantly between 2006 and 2010 from a high of 2.5% to a low of 1.2%. However, between 2011 and 2015, the percentage contribution has increased steadily as depicted by the graph. The Qatar government expects the direct contribution of the sector to the country’s GDP to increase by an annual rate of 4.7% to reach QAR 26.2 billion, which represents 1.7% of the total GDP by 2025 (World Travel & Tourism Council 2014).
The capacity of the sector to contribute substantially to the country’s GDP has been stimulated by the strong performance of the supportive segments that constitute the tourism industry such as travel, hotels, travel agents, and effective passenger transportation. The contribution to the total GDP can be subdivided into three main segments, which include direct, indirect and induced contribution. The graph below illustrates the trend in the contribution of the three segments between 2014 and 2015 and the projected contribution in 2025.
Table 4
Graph 4 shows that the percentage contribution of tourism to the economy’s GDP due to induced, indirect and direct impact of tourism remained relatively stable between 2014 and 2015. However, the projected contribution of the sector to Qatar’s GDP by 2025 is considerably lower as compared to the performance experienced in 2014 and 2015. Moreover, the projected growth in 2025 as illustrated by graph 3 is substantially lower as compared to 2.7% contribution experienced in 2005. Based on these projections, the tourism sector might not sufficiently stimulate the country’s economic growth. In 2014, the sectors’ direct contribution was projected to grow by 9.1 % (World Travel & Tourism Council 2014). The increase in the sector’s contribution to the country’s GDP was projected to arise from improvement in the level of economic activities within the supportive sectors such as the travel, hotel, accommodation and transportation. Furthermore, it is projected that the tourism sector direct contribution to the country’s GDP will grow at an annual rate of 4.5% to reach QAR23.1 billion by 2024(World Travel & Tourism Council 2014). To achieve this projection, it is critical for the Qatar Tourism Authority to focus on exploiting the opportunity presented by its win to host the 2022 FIFA World Cup (World Travel & Tourism Council 2014).
To overcome the slowdown in the sectors’ contribution to the country’s economy, the Qatar government should consider the most effective approach that should be integrated in Qatar Tourism Authority planning process to leverage on the opportunities associated with hosting the 2022 World Cup. Through effective tourism planning, the expected mega event will improve the likelihood of Qatar improving the future sustainability of the tourism sector and hence its contribution to the country’s future economic growth (Chen & Funk 2010).
The secondary data further shows that the tourism sector contributes to economic growth through employment creation. The sector has been a source of employment for a significant proportion of the country’s population. The sector has employed a significant number of people either directly or indirectly. In 2013, the travel and tourism sector contributed QAR 13.6 billion, which accounts for 1.8% of the country’s GDP. Graph 5 shows the trend in the level of employment within the sector over the past decade.
Table 5
Graph 5 shows that the number of new jobs created in the Qatar tourism sector declined significantly between 2007 and 2010. However, the sector’s capacity to create new jobs rebounded between 2011 and 2015. Despite the growth experienced between 2011 and 2015, it is projected that the number of new jobs created will reduce by 2025.
The level of consumption amongst tourist is an essential economic aspect in governments’ quest to exploit the opportunity associated with tourism (Hall 2012). The World Travel & Tourism Council (2014) affirms that the money spent by international tourists within a country is critical in the contribution of a country’s tourism sector to a country’s economy. Therefore, in its process of preparing for the 2022 World Cup, the Qatar government should appreciate the importance of stimulating the tourist’s propensity to consume. Qatar projects the total number of international tourist arrivals reach 5,141,000 by 2025 hence generating a total expenditure of QAR 35 billon. This figure represents a 3.7% annual growth rate (World Travel & Tourism Council 2014). The graph below indicates the trend in visitor exports in Qatar between 2005 and 2015 and the projected growth in visitor exports by 2025.
Table 6
Despite the slow performance in the volume of visitor export in Qatar between 2005 and 2010, graph 6 indicates that the country expects to experience an increase in the size of total visitor exports. The effectiveness with which a country’s tourism sector contributes to economic growth is influenced by the degree of capital investments. The capital investments mainly relate to the requisite infrastructural development such as establishments of hotels and resorts amongst other tourist attraction facilities. An increase in the number of tourists demands a country to have the requisite infrastructures to sustain the long-term development of the tourism sector (Sharma 2004). This aspect is correlated with the TALC theory, which stipulates that tourism progresses through different stages. Sharpley and Telfer (2002, p. 85) affirm that tourism in ‘the contemporary business environment is promoted and politically supported with investment in tourism infra and superstructure’. An increase in the level of capital infrastructure leads to a subsequent increase in the level capital output ratio (Sharpley & Telfer 2002). Over the past few decades, Qatar has experienced an increase in the level of capital investment within the tourism sector as depicted by the graph below.
Table 7
According to graph 7, the level of capital investment in the Qatar tourism sector has improved at a considerably low rate. Despite the fluctuations experienced between 2005 and 2007, the rate of growth has been relatively stable. However, it is projected that the level of capital investment will increase significantly between 2015 and 2025 from QAR 6.8 billion to QAR 14 billion.
One of the core guidelines in bidding to host the World Cup entails a country’s capacity to accommodate the fans. In bidding to host the 2022 World Cup, Qatar pledged its capacity to develop 100,000 rooms, which was above the minimum 60,000 rooms’ requirement by FIFA. Over the past few decades, Qatar has been focused on fulfilling this requirement. One of the strategies that the Qatar Tourism Authority has adopted entails establishing cruise ships that will serve as rooms to be used during the event (Walker 2015). Through this approach, the Qatar Tourism Authority expects to secure 10% of the total FIFA room requirement. Moreover, the QTA is currently rolling out a plan to establish 80 new apartment hotels, which is expected to be actualised within 5 years (Kovessy 2014). Despite the ambitious plan, Qatar continues to experience remarkable pressure to fulfil the promise to host the event successfully. Failure to provide the required accommodation might translate into a negative impact amongst the international tourists visiting Qatar (George & Swart 2012). Subsequently, the capacity of Qatar to sustain the attractiveness of its tourism sector might be impacted negatively. In the event that Qatar is inefficient in satisfying the accommodation requirement during the World Cup, the country might lose a significant proportion of tourists to the neighbouring countries such as the United Arabs Emirates (Trenwith 2015).
Furthermore, a study conducted by Deloitte (2014, p. 7), shows that Qatar ‘could only support around 38,000 hotel rooms after the tournament, based on approximately 60% room occupancy’. Therefore, the capital investment in the Qatar travel and tourism invest with reference to accommodation facilities might not sufficiently support the development of a sustainable tourism sector. To overcome this challenge, the Qatar Tourism Authority should appreciate the importance of ensuring that the tourism generated during the event is sustained. This aspect will ensure that the oversupply of hotels and accommodations facilities established before and during the mega sports event continue to contribute to the country’s economic growth. Currently, the Qatar government in collaboration with other stakeholders in the tourism sector has formulated a comprehensive Vision 2030 strategy aimed at promoting the country’s tourism sector. The strategy focuses on different areas of tourism. First, Qatar projects to improve its ranking with reference to the Travel and Tourism Competitiveness Index [TTCI] (Qatar Tourism Authority 2015). Moreover, Qatar intends to grow the level of domestic tourism.
Qatar has experienced improvement in the level of leisure and business travel spending. By the end of 2013, the contribution of leisure travel spending in Qatar was estimated to be 30.1% of the country’s GDP compared to the 69.9% contribution from the business travel spending. The country expects leisure and business travel spending to increase to QAR 11.7 billion and QAR 39.5 billion by 2024 (World Travel & Tourism Council 2014). This aspect indicates the existence of potential within the different areas of tourism.
Summary of Findings, conclusion, and recommendations
Introduction
The purpose of this paper is to illustrate whether Qatar made the right decision in bidding to host the 2022 World Cup. This decision is founded on the rationale that the event will contribute to the country’s economic growth through promotion of tourism. However, the capacity of Qatar leveraging on the mega sports event in developing a sustainable tourism sector will be influenced by the effectiveness with which the Qatar government undertakes innovative approaches in its tourism planning process. This chapter summarises the entire research. It first provides a brief summary of the whole study with particular reference to the research problem, research methodology, results, the main contributions of the research and recommendations.
Summary of the main findings
The study shows that Qatar has experienced strong economic performance as illustrated by the trend in it GDP. Moreover, the country has managed to maintain the rate of unemployment at a substantially low level. The study identifies the tourism sector as a vital component in the country’s economic growth. Despite the fact that Qatar is characterised by substantial oil and gas reserve, the Qatar government has been focused on exploiting the opportunities available in the tourism sector. This shift has arisen from the increase in the level of challenges associated with production and marketing hydrocarbon products. The study’s results show that the contribution of the tourism sector to the country’s GDP has increased substantially over the past decade.
The sector’s efficiency in strengthening the country’s economic performance arises from its capacity to support other industries either through direct, indirect or induced means. Subsequently, the sector has created employment to a sizeable population hence increasing the consumers’ purchasing power. Some of the supportive industries that have benefited from the growth experienced in the tourism sector include the travel, accommodation and the hotel industries. The study underscores the growth in the Qatar tourism sector by highlighting the increase in the number of tourists that visit the country annually. Consequently, the volume of visitor exports in Qatar has grown considerably. The study further shows that the Qatar tourism sector has experienced significant fluctuation with reference to its performance. Nevertheless, the sector has been considerably resilient as illustrated by the steady improvement in its contribution to the country’s economy.
Despite its past performance, the sector’s performance over the next decade is projected to slow down as depicted by the 2025 projections. Therefore, it is imperative for Qatar to be concerned on how to establish a vibrant tourism sector. The country’s successful bid to host the 2022 FIFA World Cup presents an opportunity for Qatar to strengthen the contribution of the tourism sector to the country. However, exploiting the mega sports event as a catalyst for improving the performance of the tourism sector will depend on the efficiency with which Qatar Tourism Authority adjusts its approach to tourism planning.
Conclusion
The Qatar government intends to stimulate country’s economic performance through economic diversification. One of the economic sectors that the government has identified to be characterised by a high potential for enhancing the country’s economic performance entails the tourism sector. Despite the fact that the tourism sector has remarkably contributed to the country’s economic performance, the sector’s projected performance over the next decade is expected to be relatively low. However, Qatar’s winning of the bid to host the 2022 World Cup presents an opportunity for the country to stimulate the future performance of the tourism sector. Therefore, the Qatar government did not err in bidding to host the event. The literature review conducted shows that hosting mega sports events has been of great economic benefits to countries that have previously hosted the mega sports events such as Germany and South Africa.
The mega sports event will significantly improve the country’s visibility in the global market. This scenario will play out due to the extensive media coverage that is associated with the FIFA World Cup. It is expected that the mega sports event will attract a substantial number of fans both locally and internationally. Thus, the level of consumption during the sports event is expected to be high. To facilitate the successful hosting of the event, the Qatar government is expected to invest a substantial amount of money in establishing the requisite infrastructure such as accommodation and transport facilities. The study shows that Qatar might experience a shortfall with reference to its capacity to accommodate the fans and tourists during the mega sports event. Thus, the country might lose revenue to the neighbouring countries such as the United Arab Emirates. The accommodation challenge might hamper the development of a positive perception regarding the country’s tourism sector amongst the fans. Therefore, the sustainability of the country’s tourism sector and the profitability of the facilities established after the event is a major challenge.
Recommendations
From the study, it is evident that hosting a mega sports event influences the future performance of a country’s tourism sector. One of the issues that emerge from the study relates to the sustainability of the high level of tourism generated during the 2022 World Cup. Despite the fact that Qatar has formulated comprehensive Vision 2030 strategy targeting the tourism sector, it is imperative for the government to appreciate the importance of adjusting the strategy to improve the probability of establishing sustainable growth in the tourism sector. To improve the sustainability of the tourism sector, the Qatar Tourism Authority should focus on the following aspects.
Branding
Considering the extensive media coverage associated with hosting a World Cup, it is imperative for the QTA to consider the most effective way of improving the country’s visibility. One of the approaches through which the country can achieve this goal relates to creating awareness of the country’s tourist destination (Zhang & Zhao 2009). The government should invest a substantial amount of money in conducting a global marketing campaign on the tourist destinations in Qatar. The government should ensure the message on the tourist destinations is developed effectively to create sufficient level of awareness (Kaplanidou 2007). This approach will lead to the establishment of interest amongst the local and international tourists hence improving consumption (Chalip & Costa 2005). Subsequently, the country will experience a remarkable growth in the level of domestic and foreign tourism. In the course of branding Qatar as a tourist destination, the Qatar Tourism Authority should focus on two main areas of tourism that include the leisure and business tourism.
Destination Management Organisation
The Qatar Tourism Authority should establish a destination management organisation, which should be charged with the responsibility of ensuring continuity of the attractiveness of the tourist attraction destination. Therefore, the DMO should undertake continuous marketing and management of the destination. The operation of the DMO should involve collaboration with different stakeholders such as the tourist bureaus. Moreover, the DMOs should be established at the local, regional and national levels (Bornhorst, Ritchie, & Sheehan 2009). This consideration will play an essential role in motivating the fans visiting the country for the event to visit the various tourist attraction destinations during and after the sports event (Gibson, Qi, & Zhang 2008). Moreover, the DMO will improve Qatar’s efficiency in promoting a positive visitor experience. Through this approach, the Qatar Tourism Authority will succeed in increasing the contribution of the tourism sector through direct, indirect and induced impacts (Blackman, Kennedy, & Ritchie 2011). For example, the level of capital investment in the tourism will grow substantially.
Sustainability of the travel and accommodation facilities
The study shows that the future sustainability of the infrastructure established to support the mega sports event in improving the country’s economic performance is a major issue. Thus, the Qatar Tourism Authority should be concerned with formulating a plan aimed at ensuring that the economic significance of the facilities. One of the aspects that the country should consider entails entering into strategic partnership with the private sector. The public-private partnership should focus on how to ensure continuity of tourism activities in the regions within which the facilities are established (Mohan 2010). An example of the issues that the strategic partnership should consider entails promotion of business and other cultural activities in such regions. Thus, the Qatar Travel Authority will lead to improvement in sustainability of tourism due to the emergence of business, leisure and cultural tourism. This aspect will play an essential role in stimulating domestic and international tourism.
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