Destination Kurdistan: an Emerging Destination for Business Tourism

Not only does Kurdistan have valuable natural resources and numerous opportunities to develop an entirely new business infrastructure, the region also offers unique opportunity to combine these emerging sectors to develop business and MICE tourism in Kurdistan. The tourism sector is on the rise in Kurdistan, as the number of incoming tourists has increased by almost 70 percent this year. According to local tourist officials, Iraqi Kurdistan hosted 1.7 million tourists in 2011 and expect to have hosted over 2.5 million visitors by the end of 2012.

Kurdistan’s impressive track record for stability, the presence of free market governmental policies, and the numerous economic opportunities in the oil and gas, real-estate, housing, tourism and agriculture sectors are all factors that could transform Kurdistan into a business hub of the Middle East. Kurdistan’s rapid economic growth, and the potential for future development, has attracted both domestic and foreign investors. The number of foreign companies in the country has risen from 1,170 in 2010 to 1,600 in 2012, and non-oil investment in Kurdistan totaled $12 billion USD in 2011, according to the Board of Investors of the Kurdistan Regional government. These figures in turn indicate success in the future of the business tourism sector. As Kurdistan grows to its full status as a destination for commerce and investment, the demand for a business tourism sector to accommodate investors also rises.

Since there already is an influx of business in Kurdistan and the emerging potential for new investors, some companies are already investing in business tourism itself in anticipation of the flood of domestic and international business in the region. One of these companies is Tangram Hotel, a new emerging foreign hotel chain opening its first location in Erbil. Tangram Hotel is focusing on creating a haven for business. General manger of Tangram, Doaa Amin, perfectly summarizes the growth of the business tourism in Kurdistan:

“Business tourism, which I consider a type of tourism, is picking up in Erbil. The facilities are being put in place and the infrastructure has been planned and put in place, starting with the airport of course. Roads and transportation are yet to be improved from where they are now. There is a huge calendar of business conferences and exhibitions spread throughout the year in Erbil that attracts a lot of business tourism from the region and beyond, including the areas around Turkey, the GCC, North Africa, and even Europe. So this is something that is worth looking at for business tourism.”

Tangram is a relatively small hotel brand that is the first of its kind in the Middle East. Tangram, a member of the world’s first and largest hotel alliance Global Hotel Alliance which Kempinski hotels, one of the leading luxury hotel groups, is the founding member of, is initially targeting foreign and regional businesspeople. There are plans, however to expand into the domestic market. Presently, a majority of tourism in Kurdistan is regional, such as locals traveling for Ramadan, but hotels like Tangram intend to tap into the rapidly growing business sector as domestic and foreign investors travel to Kurdistan to invest in oil, agriculture, and infrastructure.

The hotel is “no frills” and focuses on convenience with style. The 118 rooms in the Tangram are designed to provide the space and amenities needed for an average businessperson, without the extra unnecessary accouterments. The average businessperson stay 1.5 to 2.5 nights in Erbil and Tangram is perfectly equipped to provide for them in a comfortable, condensed fashion. Tangram offers nightlife options, such as the sophisticated 360 Club which is located on the 12th floor of the hotel and offers carefully selected food and beverages. Tangram also offers live music and hosts a house band that will soon expand to include more members.

According to Doaa Amin, Tangram faces a few challenges, such as difficulty attracting talent, acclimating a relatively inexperienced Kurdish staff, and growing competition from other hotels. However, the growing competition Tangram faces is an issue that is viewed positively as it indicates growth and future success for the business tourism sector. Tangram represents the emerging potential for the business tourism sector and reflects increasing presence of the high quality, international investors coming to Erbil to take a stake in Kurdistan’s future.

Kurdistan presents encouraging economic potential in the tourism sector with numerous geographical and historical attractions, and the current, encouraging development of business tourism. This potential in the tourism sector, combined with other investment opportunities in real-estate, gas and oil, etc, make Kurdistan a compelling investment option. While most investors are smaller, emerging Middle Eastern powerhouses, and stronger economies from all areas of the world have begun to take notice of Kurdistan and acknowledge the potential for investment in the region. The “early investors” are already capitalizing on the emerging Kurdistan economy.