Hospitality as a school subject is likely to start being added in countries across the Gulf as they rush to fill their newly opened hotels. Tourism is a key component of the region’s economy, with areas like Dubai leading the way and Saudi Arabia looking to make tourism its second-largest economic contributor behind oil.
How Saudi Sees Luxury: Just '20% Will Be in 4- And 5-Star Hotels’
16.05.2024 - 14:23 / skift.com / Paul Stevens / Josh Corder
Skift reported recently that Saudi’s Vision 2030 is too expensive for tourists: If it eventually wants 70 million international visitors, it’s going to need more supply of hotels that don’t cost thousands of dollars a day.
The Saudi Tourism Authority was quick to acknowledge the issue: The STA pointed to developments beyond the most high-profile projects and said it needs to do a better job communicating.
“If you look at The Red Sea, Neom, altogether even, by 2030, they won’t even be 1% [of hotel capacity],” said the agency’s CEO, Fahd Hamidaddin, during the Arabian Travel Market (ATM) trade show in Dubai.
“It’s a fault of our media, our share of voice is going mostly to those flagship 1% projects. I have to say, article was a wake-up call. It is a perception people have, and you rightly captured it.”
But according to Knight Frank, around 82% of upcoming rooms in Saudi are in the luxury and upscale categories.
Of the 320,000 planned new rooms for Saudi by 2030, as many as 80,000 could be in Neom alone. The Red Sea’s official projection is for 50 hotels – 8,000 rooms and 1,000 residences. Diriyah, a cultural heritage site outside of Riyadh, has signed 42 hotels so far.
Almost all the hotels in these projects are luxury names, with a few exceptions, such as a Yotel in Neom and a Radisson Red in Diriyah.
Hamidaddin said these projects – which will house the likes of Four Seasons, St. Regis, Langham and many other luxury names – will only appeal to around 20% of travelers, maybe even less.
“Do you know the 80-20 rule? That 20% of travelers generate 80% of income,” Hamidaddin said. “Those are not mass-market travelers. Actually, the reality is it’s not even 20% – it’s 5% of travelers generating 80% of revenues for any top destination.”
He continued: “What is the state of Saudi? 80% are mass travelers at mid-income or below…the real business today is far from luxury and the development of new hotels is absolutely balanced between all the tiers. We know that not more than 20% [of travelers] will be in four- and five-star hotels.”
Paul Stevens, Accor’s COO Middle East, Africa and Turkey – Premium, Midscale & Economy explained: “When you see a market take off and position itself in a global environment, generally in this region [the Middle East], they use luxury and stand-out, and iconic hotels. That’s totally understandable [because] it gets the ‘Wow factor,’ international interest and gets people excited.”
“The reality is that the majority of people in the world are really economy and mid-scale brand customers. So, we need to continually offer that mid-scale and economy brand so the system continues so they have an aspiration of luxury.”
Other operators, such as Radisson, are waiting their turn to operate
The website maxtravelz.com is an aggregator of news from open sources. The source is indicated at the beginning and at the end of the announcement. You can send a complaint on the news if you find it unreliable.
Top Autors
Popular Topics
skift.com
04.06.2024 / 11:01
Riyadh Air Will Collaborate With Singapore Airlines to Punch Into Asia Market Early
Riyadh Air and Singapore Airlines have signed a commercial collaboration agreement on Tuesday, likely one of many such deals for the Saudi carrier as it opts to build a “virtual network” rather than an Emirates-sized fleet.
lonelyplanet.com
03.06.2024 / 13:29
How to see Utah's "Mighty 5" national parks on an epic road trip
Utah might not have the most national parks of any state – that honor goes to California – but it certainly has the highest concentration.
skift.com
29.05.2024 / 18:01
Qatar Tourism is Becoming Reliant on Spikes and Mega Events
The small Gulf nation of Qatar is relying heavily on events to keep its tourism sector going. During the FIFA World Cup in 2022, the country scrambled to open thousands of hotel rooms, which it now struggles to fill without similar mega-events.
traveldailynews.com
29.05.2024 / 12:58
Cendyn and Shiji target hotel profitability with PMS-CRS integration
Cendyn and Shiji new integration boosts hotel profitability by optimizing rates and availability, enhancing operational efficiency and guest experiences.
theguardian.com
28.05.2024 / 11:27
10 of the UK’s best new and revamped seaside hotels
The Albion hotel, which can lay claim to some of the best sea views on the island, has been welcoming guests to Freshwater Bay since Victorian times. It is about to reopen under new ownership after a multimillion-pound refurbishment. The new-look Albion will have 40 rooms, 36 of them sea-facing, including two suites, seven dog-friendly rooms and two accessible rooms. Some have roll-top baths and balconies or terraces. The Rock is its new 100-seater restaurant, which sources more than 90% of ingredients from the island, including garlic, tomatoes, fish, lobster and meat. A free shuttle bus drops off and picks up guests from local bars and restaurants. The hotel is about a 10-minute drive from Yarmouth ferry port.Opens in June, taking bookings for 19 June, doubles from £99 B&B (two‑night minimum), albionhotel.co.uk
insider.com
27.05.2024 / 01:03
I moved to Thailand, started a family, and can't picture ever returning home to Scotland
A friend recently said that living in Southeast Asia was akin to winning one of Willy Wonka's golden tickets. And it's impossible to dismiss a long list of advantages that include the cuisine, cultural heritage, diverse landscapes, low cost of living, and generally friendly, laid-back hosts.
skift.com
26.05.2024 / 13:27
There's an Opportunity For Saudi Tourism – But it Needs Nuance
My colleague Josh Corder recently reported how Saudi Arabia is thinking about luxury: The country’s tourism leadership acknowledged that 4- and 5-star hotels will account for at most 20% of their traffic.
skift.com
24.05.2024 / 11:07
Big Bus Tours Acquires Tour Dubai, Adding Safaris and Cruises to Portfolio
Big Bus Tours has acquired activities firm Tour Dubai as the company continues to expand outside of its core business. Big Bus Tours has around 550 buses in 26 destinations around the world, but in recent years, has been increasingly focused on the wider activities industry.
traveldailynews.com
22.05.2024 / 12:03
Cvent announces Top Meeting Destinations and Top Meeting Hotels in Europe for 2024
The industry-acclaimed annual rankings recognise the top-performing hotels for MICE business, as well as the world’s most coveted meeting destinations
cntraveler.com
17.05.2024 / 19:09
This New Multi-Nation Visa Will Grant Tourists Entry to Six Gulf Countries
Hopping between Gulf countries could soon be as easy as traveling through Europe's Schengen Area: just flash your passport at the entry point and seamlessly travel from one country to the next—no extra paper work required.
forbes.com
17.05.2024 / 15:21
Richard Branson’s New Luxury Safari, The World’s Best Beaches And More Travel News
Richard Branson has added a new safari experience to his Virgin Limited Edition portfolio—the award-winning Finch Hattons Luxury Safari Camp in Kenya. Located in Africa's only Shetani lava flow, Finch Hattons features 17 tented suites and offers stunning views of Mount Kilimanjaro. The camp joins other African destinations in Virgin Limited Edition's collection, including Mahali Mzuri (also in Kenya), South Africa’s Ulusaba Private Game Reserve and Mont Rochelle hotel and vineyard, and Kasbah Tamadot in Morocco.