Travel in city Jeddah

The post-Covid recovery of the real estate sector in Saudi Arabia is led by increasing tourist demand and government spending on infrastructure projects such as the investment in King Salman International Airport, Deloitte noted in its latest real estate report. In 2022, both average daily rate (ADR) and occupancy improved from 2021 as market-wide recovery was supported by the ease of travel and faster visa processing for tourists, according to the report. The first three months of the year were the strongest for occupancy performance in Riyadh, reaching 76 percent in March. Meanwhile, Jeddah hotels recorded the highest occupancy performance in May at 59 percent. The facilitation of a tourist visa for Gulf residents and the visa on arrival extension to UK, U.S. and European Union residents aims to support the country’s ambition to welcome 100 million visitors a year by 2030, the global consultancy firm noted in its report.

Despite a sluggish international travel market, the pace of recovery in the Middle East aviation market accelerated throughout 2022 and is expected to take off over the next 10 years with the region’s share of the global fleet set to expand. In its “Global Fleet and MRO Market Forecast 2023-2033,” global management consulting firm Oliver Wyman noted that the Middle East remains among the fastest-growing aviation markets in the world, with the regional fleet set to expand 5.1 percent annually over the next decade. The report further noted that the Middle East’s share of global fleet will grow over the decade from 4.9 percent in 2023 to 6 percent in 2033.  Meanwhile, the global fleet is projected to expand one-third by 2033, to well over 36,000 aircraft, with Oliver Wyman also anticipating a record number of aircraft deliveries over the next 10 years (despite current supply chain constraints). The Middle East fleet’s growth over the next decade will primarily be driven by the addition of narrow bodies. Historically, the Middle Eastern fleet has been primarily made up of widebodies. But moving forward, the report observed that narrow bodies will increase to 48 percent of the fleet from 39 percent, while wide bodies will decline to 48 percent from 56 percent.

Hotel development in the Middle East is heating up as investors regain confidence in the region, and it’s a competition between who is more luxurious.

Saudi Arabian auto rental firm Lumi has hired Saudi Fransi Capital and EFG Hermes to arrange the sale of 30 percent of its shares in a planned initial public offering (IPO), two sources told Reuters. The kingdom’s largest travel company Seera, which owns Lumi, won approval for the float from Saudi Arabia’s Capital Market Authority (CMA) last week. Companies that secure approval from the CMA have six months to launch their public share sale.

For a brand around since 1907, Fairmont Hotels and Resorts has suddenly had a lot of activity. In January, parent company Accor installed new Fairmont CEO Mark Willis, who has been leading a rethink of the brand’s strategy. Some of the details about strategy changes will be revealed later this month at a conference with the general managers at the brand’s 86 hotels.

India will soon declare a national tourism policyand is also planning a global tourism investment summit, said Tourism Minister G Kishan Reddy. “Without private investment, we cannot become a global destination,” he said, adding the government is allowing 100 percent foreign direct investment in tourism. Speaking at the third G20 tourism working group meeting in Jammu and Kashmir’s Srinagar, Reddy said the tourism ministry is working closely with all the other ministries and state governments to encourage tourism. The new national tourism policy for the country has been in the making for almost two years, with the current one dating back to 2002. The policy would help lay down a framework to make India more competitive in the international market, at a time when the world is reopening to tourists. It aims to increase visitation, stay and spend and make India a year-round destination, besides creating jobs and opportunities in the sector. Last month, Tourism Secretary Arvind Singh highlighted India’s plans to open up to 50 new tourism destinations, promote green tourism, launch a publicity campaign in overseas markets and operationalize 59 new air routes this year. 

Habitas, a luxury travel lodging and experiences company, may add up to six properties in Saudi Arabia through a planned $400 million (1.5 billion riyals) fund with financial support from the kingdom’s investment community.

Saudi Arabia’s sovereign wealth fund Public Investment Fund (PIF) has announced the establishment of the Saudi Tourism Investment Company (Asfar) to support the growth of the country’s tourism sector.

Emirates has announced it will reduce service between Dubai and almost half its destinations in the U.S. Flights to Boston, Seattle, and Los Angeles will be reduced from two per day to one, and daily flights to Orlando and Ft. Lauderdale will be reduced to five per week each. The total number of weekly flights cut comes to 25.

The Department of Homeland Security officially lifted the ban on large carry-on electronics for U.S.-bound flights. At the same time, new enhanced security measures are rolling out, leading airlines to warn travelers of new procedures around the globe.