Saudi Arabia Nearly Doubles UAE in Hotel Room Construction

In the second quarter of 2023, the Middle East’s hotel construction pipeline has seen significant growth, marking its highest project count since the first quarter of 2020, according to Lodging Econometric’s Middle East Hotel Construction Pipeline Trend Report.

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Integrated resort operator Wynn Resorts confirmed that it would be operating a casino at its resort in Ras Al Khaimah.

The United Arab Emirates government on Sunday announced the lifting of all precautionary measures implemented in the country during Covid-19. With the lifting of restrictions, wearing of masks has now been made optional in all open and closed facilities, including places of worship and mosques. However, those categorized as “people of determination” would be required to wear mask while visiting health facilities and centers. The Al Hosn app would now only be required to furnish proof of vaccination and for test results inside and outside the country, when required. The green pass on the app would no longer be required to enter public facilities and sites. The requirement of a polymerase chain reaction test would also no longer be made mandatory for those attending or participating at sporting events. The authorities said they have decided to ease the restrictions after studying the epidemiological situation in the country and having monitored occupancy rates in hospitals and intensive care for Covid cases.

Dubai-based property developer Nakheel announced it has secured $4.6 billion in strategic financing deal to drive what it calls, “the new phase of growth.”

Saudi Arabia’s increasing focus in the tourism sector and the shift to leisure travel has brought Seera Group from the red to report the company’s first post-pandemic operating profit of $8 million in the third quarter.

In a bid to boost tourism’s contribution to the national gross domestic product to $122 billion a year by 2031, the ruler of Dubai, Sheikh Mohammed bin Rashid Al Maktoum, launched the UAE Tourism Strategy 2031 on Friday. Eyeing an annual increase of $7.4 billion, the tourism startegy aims to attract new investments of $27.2 billion to the tourism sector in the country, and attract 40 million hotel guests in 2031. The strategy includes 25 initiatives and policies to support the development of the tourism sector in the country, according to the government media office. With the return of tourists, the United Arab Emirates’ tourism revenues surpassed $5 billion in the first half of this year.

Saudi Arabia announced its masterplan for King Salman International Airport — touted to be one of the world’s largest airports. Public Investment Fund, the country’s sovereign wealth fund, will build the more than 57 square kilometres airport, and it will include the current King Khaled airport. With plans for six parallel runways, and including the existing terminals, the airport aims to accommodate up to 120 million travelers by 2030. By 2050, the airport is expected to accommodate up to 185 million passengers and process 3.5 million tons of cargo. The masterplan would boost Riyadh’s position as a global logistics hub, stimulate transport, trade and tourism, and act as a bridge linking the East with the West. The new airport is expected to contribute $7 billion annually to the country’s non-oil gross domestic product and to create 103,000 direct and indirect jobs, in line with Saudi’s Vision 2030 objectives. The kingdom has plans to attract 100 million annual visits by 2030.

The Gulf region now has more than 170,000 hotel rooms under active development, which includes planning, final planning and under construction, according to research conducted at the end of September by STR, a hotel market intelligence and global benchmarking company. This active hotel development pipeline now equals 40 percent of the Gulf region’s existing hotel room inventory, a figure almost four times greater than the global average of 11 percent. The STR report estimates 135,560 existing rooms in Saudi Arabia with an active pipeline of 82,639 rooms, with total room inventory projected for 2030, at over 218,000 rooms. Similarly for the United Arab Emirates, the research currently tracks more than 202,000 existing rooms with an active pipeline of 48,910 rooms, a combined total of almost 251,000 rooms by 2030. “Interestingly, Ras Al Khaimah, is second only to Dubai, with 5,076 rooms in its pipeline, almost the same amount as Sharjah, Abu Dhabi and Fujairah combined,” said Danielle Curtis, exhibition director of Arabian Travel Market. The research had been commissioned by Arabian Travel Market.

Citizens of Saudi Arabia will now be able to rent out their homes to tourists, according to a bylaw approved by the tourism ministry.

Saudi Arabia launched the electronic stopover transit visa for international visitors arriving in the country by air from Monday. The transit visa entitles visa holders to stay in the kingdom for four days and the duration of the visa is three months. The visa is free of cost and it will be issued instantly along with the flight ticket, the Saudi Press Agency reported quoting sources from the foreign affairs ministry. The ministry clarified that applications for transit visas can be submitted through the electronic platforms of Saudi Arabian Airlines and Flynas. The transit visa allows transit passengers, who wish to enter Saudi Arabia to perform Umrah and visit the Prophet’s Mosque in Madinah in addition to traveling inside the kingdom, as well as attending tourism events. The ministry confirms that the digital transit visa service will contribute to achieving the objectives of Vision 2030 by strengthening Saudi’s position and benefiting from its distinguished strategic location connecting various continents, and attractive station for transit passengers as well as a global tourist destination.

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