Hotels - Iraq | Statista Market Forecast

Hotels - Iraq

Iraq

Highlights

The Hotels market in Iraq is expected to witness a rise in revenue in the coming years.
As per the projections, the revenue in this market is anticipated to reach US$500.00m by 2024.
Moreover, the market volume is also expected to expand at a CAGR of 3.79% during the period from 2024 to 2029, thereby reaching US$602.10m.
The number of users in the Hotels market is also projected to increase substantially, reaching 5.95m users by 2029.
The user penetration rate is expected to rise from 9.6% in 2024 to 11.5% by 2029.
The average revenue per user (ARPU) is also expected to be around US$112.40.
It is interesting to note that a significant portion of the total revenue in the Hotels market, i.e., 76%, will be generated through online sales by 2029.
Lastly, in terms of global comparison, United States is expected to generate the highest revenue in this market, with a projected revenue of US$111bn in 2024.
Despite ongoing security concerns, Iraq's hotel industry is gradually growing and improving, with new international chains entering the market.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Hotels market in Iraq is experiencing significant growth and development due to various factors influencing consumer behavior and market dynamics.

Customer preferences: Customers in Iraq are increasingly seeking luxury and comfort when choosing hotels, leading to a rise in demand for upscale accommodations with modern amenities and high-quality services. Business travelers are particularly driving this trend, as they look for convenient locations and facilities to conduct meetings and conferences. Additionally, tourists are attracted to hotels that offer unique cultural experiences and opportunities to explore the rich history of Iraq.

Trends in the market: One of the notable trends in the Iraqi Hotels market is the increasing presence of international hotel chains entering the country. This trend is fueled by the growing stability and security in Iraq, making it a more attractive destination for foreign investments. As a result, there is a wider range of hotel options available to customers, catering to different preferences and budgets. Moreover, the rise of online booking platforms has made it easier for customers to compare prices and services, driving competition among hotels to enhance their offerings.

Local special circumstances: Iraq's unique cultural heritage and historical significance play a crucial role in shaping the Hotels market in the country. Many tourists are drawn to Iraq for its archaeological sites, religious landmarks, and vibrant cultural traditions. As a result, hotels that can provide authentic local experiences and knowledgeable staff are highly valued by customers. Additionally, the local cuisine and hospitality customs influence the design and services offered by hotels to create a memorable stay for guests.

Underlying macroeconomic factors: The improving economic conditions in Iraq, coupled with government initiatives to promote tourism and foreign investment, are key macroeconomic factors driving the growth of the Hotels market. As the country continues to rebuild its infrastructure and strengthen its business environment, there is a growing demand for quality accommodations to support the influx of business travelers and tourists. Additionally, the stability in the political landscape and security situation are boosting consumer confidence and attracting more visitors to Iraq, further fueling the expansion of the Hotels market.

Data coverage:

The data encompasses B2C enterprises. Figures are based on bookings, revenues, and sales channels of hotels.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on a specific rationale for each market. As a basis for evaluating markets, we use financial reports, the Global Consumer Survey, third-party studies and reports, data from industry associations (e.g., UNWTO), and price data of major players in respective markets. To estimate the number of users and bookings, we furthermore use data from the Statista Consumer Insigths Global survey. In addition, we use relevant key market indicators and data from country-specific associations, such as country-related GDP, demographic data (e.g., population), tourism spending, consumer spending, internet penetration, and device penetration. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, ARIMA, which allows time series forecasts, accounting for stationarity of data and enabling short-term estimates. Additionally, simple linear regression, Holt-Winters forecast, and exponential trend smoothing methods are applied. A k-means cluster analysis allows for the estimation of similar countries. The main drivers are tourism GDP per capita and respective price indices.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change.