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He explains that while attempts have been made, the government has a long way to go before it can catch up with its GCC neighbours.

"We are compared to Qatar, Dubai, Abu Dhabi and Oman and Kuwait has not had the same focus; leisure has not been the main priority," says Eilertsen.

"Kuwait has a lot to offer - it's quiet and peaceful - but today's leisure market requires more. Unless you plan and build for this, they will not come."

Crowded market

Close to 10 new hotels are expected to open in Kuwait over the next few years. In 2000, the country had 2500 rooms; this has increased to 5500 and is likely to rise to 10,000 rooms once the new projects come online.

"There are a lot of new hotels under construction or about to open and this is happening in the time where there is a decline in the market," says Eilertsen.

"It will be challenging in the years to come."

The Kuwait Hotel Owners Association (KHOA) is a cartel that regulates hotel rates across the country. Although most hoteliers are positive about its influence, some fear it is threatened as new players move into the market.

"We are a part of the cartel, as are all the major players - Sheraton, Marriott, Crowne Plaza, Hilton - but there are new hotels that have chosen to stay outside of the cartel," explains Eilertsen.

"KHOA perhaps need to modernise themselves, rethink things and ask how they can attract these new hotels - we have to give them a reason to join."

Ibis' Gaudou agrees, adding that a "proper authority" for the hospitality sector in Kuwait would reinforce KHOA's strength and provide the necessary statistics, market trends, traveller indicators, events and development plans.

Eilertsen says that since volume of guests in Kuwait is not high, hoteliers must compensate by keeping revPAR at a certain level and refusing to slash rates to boost occupancy levels.

The danger Eilertsen sees is that new hotels may not receive the return on investment that owners expect and will therefore be forced to dramatically lower rates to unrealistic levels.

"Compared to other GCC countries, our rates are not that high," says Eilertsen.

"If you have a lot of hotels on the five- and four-star category standing outside of the cartel, it is not good in the long-run."

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