Market Insights Mobility Travel & Tourism

Hotels - Kazakhstan

Kazakhstan

The Hotels market in Kazakhstan is expected to experience substantial growth in the coming years.
By 2024, revenue in this sector is projected to reach US$0.61bn and is expected to show an annual growth rate of 3.13%, resulting in a market volume of US$0.69bn by 2028.
Additionally, the number of users in this market is expected to increase to 4.09m users by 2028, with a user penetration of 18.6% in 2024, which is expected to rise to 19.8% by 2028.
The average revenue per user (ARPU) is expected to be US$164.10.
Furthermore, online sales are expected to contribute 92% of total revenue in the Hotels market by 2028.
It is worth noting that in global comparison, United States is projected to generate the most revenue in this market, with US$110,500m in 2024.
Kazakhstan's hotel market is experiencing a rise in demand from both domestic and international travelers due to the country's growing economy and tourism industry.

Key regions: Singapore, Indonesia, India, United States, Europe

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Analyst Opinion

The Hotels market in Kazakhstan is experiencing a notable growth trajectory with evolving customer preferences and unique local special circumstances driving this development.

Customer preferences: Customers in Kazakhstan are increasingly seeking unique and personalized hotel experiences, moving away from traditional cookie-cutter accommodations. This shift is fueled by a growing middle class with higher disposable incomes, leading to a demand for luxury and boutique hotels that offer exclusive amenities and tailored services. Additionally, there is a rising interest in eco-friendly and sustainable lodging options among environmentally-conscious travelers.

Trends in the market: One prominent trend in the Kazakhstani Hotels market is the influx of international hotel chains expanding their presence in the country. This trend is driven by the government's efforts to boost tourism and attract foreign investment, leading to a surge in hotel construction and development projects. Moreover, the growing popularity of online booking platforms has revolutionized the way hotels in Kazakhstan reach and engage with customers, enabling them to tap into a wider market and enhance their visibility.

Local special circumstances: Kazakhstan's strategic location at the crossroads of Europe and Asia positions it as a key transit hub, attracting both business and leisure travelers. This unique geographical advantage has contributed to the growth of the Hotels market, with many hotels catering to the diverse needs of transient guests. Furthermore, the country's rich cultural heritage and natural landscapes have made it an attractive destination for tourists, driving the demand for accommodations that offer authentic local experiences.

Underlying macroeconomic factors: The economic stability and steady GDP growth in Kazakhstan have played a crucial role in supporting the expansion of the Hotels market. As the country continues to diversify its economy and invest in infrastructure development, the tourism sector is poised to benefit from increased connectivity and accessibility. Additionally, government initiatives to promote tourism and simplify visa procedures have bolstered the hospitality industry, attracting both domestic and international visitors to explore all that Kazakhstan has to offer.

Methodology

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.