Gulf tourist influx to Bosnia fuels luxury developments

With 360 villas and apartments around an artificial lake, swimming pools, a halal supermarket and a Muslim prayer area, the 'Sarajevo resort' is one of Bosnia's most ambitious residential projects to date.

It is one of dozens of real estate ventures in the picturesque hills surrounding the capital of the Balkan country that are specifically targeting visitors from Gulf states.

The lush greenery of the country has in recent years become a magnet for wealthy Arabs looking to escape the Middle Eastern summer heat. The result has been a massive boost to tourism in what is one of Europe's poorest countries.

"People from the Gulf are attracted by the natural beauty, the presence of Islam and the warmth of Bosnians," said Tarek Al Khaja, Emirati co-owner of tourist and real estate agency Al Suwaidi and Al Khaja. "They feel welcome here."

Al Khaja, who opened his business three years ago in a Sarajevo suburb, said the housing and real estate market was in "constant growth".

Prices, he said, had increased "up to 100 percent in three years" in the Sarajevo region of Bosnia, a nation still rebuilding after its devastating 1990s inter-ethnic war.

In 2010 Bosnia began phasing out visas for nationals of most Gulf countries and the number of tourists from the region has since steadily increased to 24,500 out of 360,000 visitors to the Sarajevo area last year, according to official figures.

"They are not the most numerous, but these Gulf tourists spend much more than others, about 150 euros per day per person in addition to hotel costs," said Asja Hadziefendic Mesic, spokeswoman for the Sarajevo tourist board.