Nabila Al-Anjari

KUWAIT: Leaders Group for Consulting and Development, the representative of the World Tourism Organization in Kuwait, issued its monthly report on the food services industry, an important branch of the tourism sector in region.

Nabila Al-Anjari, Leaders Group General Manager said: "The food services industry has seen a significant growth over the past few years, and this is reflected by the number and expansion of restaurants and food companies that are today servicing the industry. Investor spending has also increased tremendously in the region, whether to attract franchises or to establish local concepts, in addition to marketing brands. In Kuwait alone, there are over 5,000 restaurants today."

The report showed that the GCC has an encouraging and attractive environment for this industry, thanks to a flow of capital, the high income of individuals, and the growth of a population under the age of 25 years old, which represents today 45 percent of the Gulf population. This segment of the population has grown in a culture of fast food and new tastes. The industry is also supported by a diversified culture in the region, the ability to invest in franchises, as well as the high revenues brought by the industry.

In a recent report issued by Almasah Capital Company, the food services industry in the GCC was valued at $18.8 billion in 2014. The Company expected the industry to grown annually at 6.8 percent to reach $24.5 billion in 2018. KSA comes in first among the GCC with total sales of the food services industry reaching $8.9 billion, equivalent to have the GCC market.

A growing industry

Leaders Group report also showed that the food tourism industry has gained attention over the past years, where the "Gastronomy" concept became an important part of the touristic experience for millions of tourists who are for the look for renowned names to taste their food, and who also travel to new destinations for a new and exquisite culinary experience.

The report also highlighted that countries are increasingly focusing on developing and marketing the food industry. Food tourism is generating revenue and creates many job opportunities, reviving the servicing and industrial sectors in countries, such as the transportation and logistics sectors, agriculture, manufacturing and refrigeration, printing, advertising, and many more sectors.

The World Tourism Organization considers the culinary tourism as a new trend which countries are seeking to develop as a touristic product, specially that more than a third of touristic spending is targeted to the food world.

From here, the concept of restaurants has changed from being a simple food place to an entertainment and enjoyment destination. Exhibitions and fairs specific to the food industry are held periodically, such as the Horeca Exhibition. Food markets, kitchens and kitchenware offers, festivals, rating associations, chef unions, all have taken the food industry to a new level. One of the main examples that these activities are successful is the Gulf Food Exhibition held in Dubai in February. Over 5,000 companies from five continents representing 120 countries participated in the exhibition. It is the largest annual food and catering exhibition in the region, and opens the door to kitchens from around the word. The exhibition was established 20 years ago, and see annually over 84,000 guest from 120 countries roaming its aisles.

Challenges

Despite the fast growing food industry in the region, challenges remain. As per Almasah Capital Company, challenges include the high competition, a poor infrastructure for the supply chain, expensive rents in prime locations, the scarcity of qualified human capital.

Another issue that is highlighted in the industry is the oversupply of food, which is generated from cooking leftovers, or food at restaurants and homes. The leftovers can usually be reused as fertilizers, or reduce it so that it does not pile up as waste, or even donate it to the poor like what is being done in some countries.

In conclusion, the Leaders Group's report said that the food industry is an attractive industry for investments. Consumer spending on food in the Gulf has reached $83 billion in 2012, while it stood at $59 billion in 2007. Statistics by A.T. Kearny Global Management Consulting Firm show that the industry is expected to reach $106 billion in consumer spending in 2017, growing at 25 percent in the next years.

The question to ask here is can the growth of the industry drive Gulf countries to establish themselves as a culinary tourism hub, especially with Iran and Iraq opening up, and the growing population in particular growth of the younger generations segment, which attract famous restaurants and franchises.