Muhammad Al-Saqqaf, chairman of the board of directors of Kuwaiti Tourism Enterprises Company, said the company intends to develop two tourism projects on the Kuwaiti island of Failaka and an entertainment city site in the Doha region, to the west of the capital, the total cost of which could reach 500 million dinars (1.64 billion dollars).
Al-Saqqaf said in an interview with Reuters that the company, owned by the Kuwait Investment Authority, Kuwait’s sovereign wealth fund, is still in the early days of research and ideas “to find the most appropriate solutions for these two giant projects.” The island project covers an area of two square kilometers, and the city of entertainment – 2.6 square kilometers.
He explained that there are two possibilities for financing these two projects: the tourism enterprise itself, with the assistance of the General Investment Office, or the participation of the private sector in them.
However, Al-Saqqaf added that private sector involvement would be “very difficult” in light of the current Law No. 105, which only allows the private sector to lease public property under contracts for only three years with the possibility of renewal. given that this limited period “does not encourage the private sector” to participate in projects with high financial costs.
He explained that the company is unable to take out loans to finance these two projects because it does not own the land, but benefits from it under a usufruct agreement with the Department of State Property. these lands, so how can a bank give you a loan?”
Quick Initiatives
Many Kuwaitis complain that their country is suffering from the deterioration of its tourist facilities and the inability to renovate or develop them for many years, as the Corona epidemic crisis and the loss of travel for many residents have exposed the weakness and limited opportunities for entertainment in this country. which several decades ago served as a role model for the rest of the Persian Gulf countries.
During public holidays and during the summer season, many citizens rush to travel in search of new places of entertainment abroad, as destinations such as Dubai, Saudi Arabia, Qatar and Turkey have become traditional destinations for Kuwaitis and their families. The new board of directors, which was formed in September last year, is dedicated to creating entertainment initiatives that last for a limited period of time and require limited financial costs through projects that can be implemented quickly.
Al-Saqqaf said: “We must have a calendar (for events). Every month or two we host an event and update it so the entertainment is updated and not boring.”
The company has launched several such initiatives over the past few months, including the Kuwait Winter Wonderland project, which took place at the People’s Park site at the start of winter.
Al-Saqqaf said the company aims to implement this project throughout the year rather than for a short period.
The company also launched the Container Park project, coinciding with the Qatar World Cup events, which is an entertainment event that showcases matches in the Blajat district of Salmiya, as well as other entertainment activities such as games and music shows. Al-Saqqaf said the board of directors is focusing on ensuring that the entertainment offered by the company caters to all ages. He added: “Our goal is to provide entertainment for all age groups, not just one, but we are talking about domestic tourism. . not foreign tourism.
He noted that in this context, among the ideas put forward was that an entertainment city should include chalets, artificial lakes, cafes, shops, tennis courts, a cultural theater and other facilities catering to all groups, adding that “entertainment should have a cultural and social dimension.”
modified strategy
Al-Saqqaf explained that the board of directors made “some amendments” to the previous strategy, according to which the company would become a “holding company”, which would include companies specializing in restaurants, hotels, facilities management and other companies. , which will distract him from his main purpose, which is to “entertain the citizens” and residents.
He said: “It is not the best solution for a company to manage the components of facilities in its projects, as this is contrary to the company’s direction to encourage the private sector, especially small and medium-sized enterprises.”
He noted that the strategy developed aims to involve the private sector in the operation of the company, so that it focuses on entertainment aspects and leaves the private sector to open restaurants, cafes, health clubs and retail stores at the facilities it operates.
He pointed out that the revision of the strategy resulted in the halt of the 200 million dinars Al-Khiran park restoration project and concluded that the 25 million dinars restoration was the “optimal solution”. only in dinars and in stages, so that it does not stop working and “financial income does not stop”.
Al-Saqqaf explained that the company is now focused on restoring many of its existing projects, including the waterfront, which stretches for about ten kilometers from the Kuwait Towers in the capital to Musannat al-Shaab, at a cost of about 20 million dinars.
He also plans to restore the Green Island Park during the summer period, from May to October, with an estimated budget of five million dinars.
The company’s former CEO, Abdel-Wahhab Al-Marzouk, revealed in 2021 that tourism projects intend to increase their capital by 250 million dinars to reach 300 million dinars, to carry out their projects.
However, Al-Saqqaf said that the current discussion between the General Directorate of Investment and the Board of Directors of amendments to the strategy has led to a “temporary suspension” of capital increase payments, given that “the authorities have the right to see amendments and we are agreeing on a new mechanism for (financial) pumping “.
Tourism Enterprises was established in 1976 to provide entertainment services in Kuwait and also aims to develop the tourism sector in the country and manages various projects including Kuwait Towers and Green Island.
