Gulf tourism investors to keep money in region

Dubai: Investors from Gulf countries will continue their investment in tourism hotspots in the region, consultancy firm Jones Lang LaSalle Hotels said.

The biggest investor outside its borders in the Arab region is the UAE, accounting for 76 per cent of the total hotel investments in 2006.

Qatar and Kuwait account for 14 per cent and 10 per cent respectively.

Countries like Egypt, Morocco and the UAE have benefited from an "excess of cash" available with Gulf investors.

"Volume of intra-regional investment is $12 billion. This is the pipeline of projects until 2012," said the firm's global chief executive officer Arthur de Haast.

"It is growing and will continue to grow," he added.

Within the GCC, $16 billion has been invested in hotel projects scheduled for completion over the next five years, Jones Lang LaSalle Hotels said.

High liquidity in the region also keeps the Western capital at bay, leaving the hospitality sector mainly open to regional investors.

"There is more cash than opportunities in the region. Local players here get access to them first. Global capital is priced out because of most of regional investors are strong," Haast said.

Arab countries need to differentiate from each other as all of them cannot go after the same market of tourists, Haast said, adding the Gulf states have been careful not to copy each other in building tourism infrastructure.