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.
28.04.2024 - 07:41 / breakingtravelnews.com
Saudi Arabia is projected to have 320,000 new hotel rooms by 2030 as the Kingdom ramps up efforts to accommodate an annual influx of 150mn tourists, both domestic and international, according to a report by global property consultancy Knight Frank.
This massive expansion of the hospitality sector is central to achieving Saudi Arabia’s goal of increasing the travel and tourism industry’s contribution to the economy from nearly 6% to 10% by the end of this decade, the report stated.
The analysis comes on the heels of record tourism numbers for Saudi Arabia in 2022, with visitor spending reaching $23.2bn in the first half of 2023 alone - a 132% jump from last year. International arrivals surged 142% year-on-year to 14.6 million in the first six months.
While nearby Gulf nations like Bahrain, Kuwait and Egypt emerged as top source markets, Saudi authorities are exploring strategies to attract visitors from further afield, said Turab Saleem, Knight Frank’s head of hospitality and tourism advisory for the Middle East.
“This includes developing cultural and entertainment offerings nationwide to complement existing attractions like the Jeddah F1 Grand Prix and numerous ‘Entertainment Seasons,’” Saleem added.
Notable projects include theme parks like Boulevard World and Qiddiya in Riyadh, as well as Saudi Arabia’s successful bid to host the 2030 World Expo, which is expected to draw 40mn visitors and inject $94.6 billion into the local economy.
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The report highlights that 67% of the projected 320,000 new hotel rooms will be upscale or luxury properties, typically requiring one to two staff members per room. This suggests between 232,000 and 387,000 hospitality workers may need accommodation as the sector expands rapidly.
Knight Frank expects Marriott International to overtake Accor as Saudi Arabia’s largest hotel operator by 2030, with 26,200 rooms under its management compared to Accor’s projected 25,400 rooms.
“Provision of quality housing for hospitality staff will be essential to ensure the success of Saudi’s tourism ambitions,” said Faisal Durrani, Knight Frank’s head of research for the Middle East.
The holy cities of Mecca and Medina are set for a significant hotel boom, with 221,000 new rooms announced, planned or under construction to cater to religious tourists - expected to reach 30mn annually by 2025 and 50mn by 2030.
Knight Frank estimates around $104bn will be required for construction costs alone to realize the 320,000 new hotel rooms nationwide, with $70bn dedicated to the religious tourism hubs of Mecca and Medina.
Source: https://www.intellinews.com/
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.
As Chinese travel into the Middle East continues to increase, one of the country’s largest hotel operators sees an opportunity. While it’s not as commonly known in the West, H World is a giant in the hotel industry, with around 9,300 hotels and close to one million rooms across the world.
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.
Boutique Group, a pioneering ultra-luxury hospitality group fully owned by Saudi Arabia’s Public Investment Fund, marks its first independent participation at the Arabian Travel Market (ATM), one of the most significant tourism industry events in the world.
Jeddah Historic District Program (JHD), under the patronage of the Saudi Ministry of Culture, and Cruise Saudi, a fully-owned Public Investment Fund company, have signed a Memorandum of Understanding (MoU). This agreement aligns with the ambitious development goals of Saudi Vision 2030. This partnership is strategically designed to accommodate the increasing number of international cruise visitors who enjoy exploring the authentic sites of the historic district. Central to the goals of both Jeddah Historic District Program and Cruise Saudi is preserving the area’s distinctive cultural identity and historical landmarks while stimulating local economic growth. This collaboration encourages local entrepreneurship and investment, drawing on the private sector’s innovative capacities to enhance the visitor experience. This proactive involvement aims to boost job creation, foster small businesses, and promote sustainable economic activities that benefit the entire community.
Even by Saudi standards, the goals are ambitious: By 2030, the country wants 330 million passengers to pass through its airports annually, up from around 112 million last year.
“Perception” was one of the key topics discussed by Saudi Tourism Authority CEO Fahd Hamidaddin during a roundtable discussion at the Arabian Travel Market (ATM) conference in Dubai.
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