Kuwait is Missing a Trick Despite Diversification into Tourism

Kuwait is at a crucial junction in its economic trajectory as it looks to diversify away from decades of heavy reliance on crude oil revenues.

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The country has lagged behind its Gulf Cooperation Council (GCC) neighbours in terms of tourism’s contribution to the national gross domestic product (GDP).

According to a 2023 study by the Tourism Enterprises Company, Kuwait’s tourism sector contributes only 6.1 percent to the GDP.

This is much lower than the contributions of other GCC countries such as the United Arab Emirates (10.8%) and Bahrain (9.8%).

Oil contributes to around 55% of Kuwait’s GDP, and the nation needs to identify alternative sources of revenue to avoid getting stuck as the world moves towards renewable energy.

Like many of its Gulf counterparts, Kuwait has turned to tourism as another avenue for bolstering the economy. However, there are still some obstacles to overcome.

A Vision for a Thriving Tourism Industry

Kuwait has several ambitious and exciting tourism projects in the pipeline including the $1 billion tourism city in the Northern Al-Jahra governorate.

The project will feature hotels, restaurants, water parks, a zoo theatre, a botanical garden and shop spread across 1.4 million square feet.

According to a feasibility study by US consultancy firm Oliver Wyman, the project will attract tourists and significantly boost the economy.

Kuwait has also earmarked $660 million to erect a ‘fun city’ in the coastal Doha area. The entertainment hub hopes to pull in over 900,000 visitors by 2030, further diversifying the economy.

The fun city will have an amusement park, sports courts, a hotel, water parks, shops and restaurants, making it a multi-faceted destination for locals and visitors.

Focusing on Unique Cultural Experiences

The GCC has recorded unbelievable growth in the tourism sectors in recent years, particularly in the UAE, Saudi Arabia and Qatar.

These Middle Eastern giants have developed well-thought-out plans to position themselves as global tourist hotspots. However, Kuwait has not found a unique niche to tap into.

The Kuwait domestic tourism industry has so much room to grow, and its trend of residents spending outside the country is a leak in the local economy.

Kuwait has failed to leverage its cultural heritage to bolster its tourism sector, but the government is working to change this approach.

The $775m Kuwait Opera House was inaugurated in 2016 to showcase the country’s finest pieces of art and culture.

Kuwait also developed exciting attractions such as Winter Wonderland and Green Island, showing its ability to create engaging experiences that reflect its identity.

Kuwait wants to focus on the needs of indigenes while creating a welcoming environment for foreigners. This strategy ensures they focus on their primary market, and international visitors will eventually follow.

Kuwait’s Stance on Gambling is a Stumbling Block

Some of Kuwait’s GCC neighbours have explored alternative sources of revenue such as gambling and integrated it into their tourism efforts.

However, Kuwait has remained adamant it won’t lift the embargo on gambling. They rejected gambling to focus on creating a tourism sector lined with family-friendly activities, cultural enrichment and recreational options.

But Kuwait is missing out on massive financial gains that could boost the economy. The Gulf state will earn billions of dollars in taxes from land-based and real money online casinos in Kuwait.

Kuwait’s government must seriously consider tapping into the gaming sector as a potential revenue stream in its diversification attempts. The possible windfall is enormous and would stimulate other sectors of the economy.

The government must study the potential economic benefits of allowing gambling in Kuwait. They need to weigh it against the social and cultural impact before carefully mapping out a regulatory framework to guide legal operations.

This regulatory framework must stipulate licensing requirements and ensure transparency and accountability. It must cover the implementation of responsible gambling measures, including age restrictions, loss limits, self-exclusion and addiction prevention programs.

The government should engage with religious leaders, community groups and government agencies to get different perspectives.

By following these steps and carefully balancing economic benefits and cultural values, Kuwait can responsibly integrate gambling into its tourism sector while keeping its family-friendly approach intact.

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Dan Dunn

Executive Managing editor

Editor and Admin at MarkMeets since Nov 2012. Columnist, reviewer and entertainment writer and oversees all of the section's news, features and interviews. During his career, he has written for numerous magazines.

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