The Central Bank of the United Arab Emirates this week revised the nation’s gross domestic product (GDP) growth for 2022 from 6.5 percent to to 7.6 percent. Explaining the reason for the renewed forecast, the bank cited stronger than anticipated performance of non-oil sectors, including tourism, hospitality, real estate, transportation and manufacturing. In its review report for the third quarter, the Central Bank noted that it expects non-oil gross domestic product to grow by 6.1 percent in 2022, compared to its previous estimate of 4.3 percent, while it expected oil gross domestic product to grow by 11 percent in 2022. Explaining the reasons for the steady growth in gross domestic product, the report cited the removal of most Covid-related restrictions, in addition to recovery of the tourism sector, real estate and construction boom, expansion of manufacturing activities, as well as the hosting of global events.
Saudi Arabia Opens Up to Airbnb-Like Rentals
25.08.2023 - 14:14 / skift.com / Peden Doma Bhutia / Turab Saleem
Citizens of Saudi Arabia will now be able to rent out their homes to tourists, according to a bylaw approved by the tourism ministry.
The country that is witnessing a renaissance in tourism, targets to attract over 100 million tourists annually by 2030.
The new rule is being seen as an effort to keep pace with this development by making the destination more accessible to international visitors.
“There is a progression towards the modern world and that will only benefit tourism and hospitality,” said Vinayak Mahtani, co-founder and CEO of bnbme, a vacation rental company in the United Arab Emirates.
As the country has increased its tourism promotional activities and budget by almost twelve-fold, this has also pushed demand to new heights. Saudi Arabia plans to invest $1 trillion in the tourism sector over the next 10 years.
As a result, the country has more hotel rooms in the pipeline than United Arab Emirates. There are 40,742 hotel rooms under construction in Saudi Arabia as of December 2022, compared to 27,456 rooms in UAE, according to hospitality data firm STR.
Saudi Arabia also registered the maximum number of international arrivals in the region during the first nine months of 2022, according to the United Nations World Tourism Organization.
The country attracted more than 18 million visitors in the first three quarters of 2022, followed by United Arab Emirates with 14.8 million tourists.
Building parallel hotel facilities at a rate quick enough to accommodate the growing number of tourists may not be easy, therefore allowing Airbnb-like accommodations can help, said Turab Saleem, partner — head of hospitality, tourism and leisure advisory services, Middle East and North Africa for real estate consultant Knight Frank.
“During peak season, the typical hotel accommodations are not enough to cope with the growing demand therefore such facilities can play their role to bridge the gap,” he said.
This would also help businesses like restaurants, cafes, local transport and souvenir shops to grow and flourish around these accommodations, Saleem said.
However, hospitality expert and founder of My Humble House, Rocco Bova, said it may be a bit rushed, “I am not sure how many people will actually open their doors to foreigners.”
And that too for a country that started issuing tourist visas as early as 2019.
Bova said this could be a great option for second or third home owners, where one’s privacy and customs would not be invaded.
As tourism in the country evolves from its traditionally-operated models of religious, domestic and corporate, bnbme’s Mahtani said the accommodation market is also expected to grow.
In January, Saudi hosted two Italian football teams — Inter Milan and AC Milan — in Riyadh,
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Israel Looks to Boost Tourism Investment for West Bank
Looking to position itself as a leading tourism destination in the Middle East, Dubai has scrapped the 30 percent municipality tax on alcohol for what has been called a trial period of one year, till December 31. Also, tourists and expats will no longer need to pay a fee to secure a personal liquor license to purchase alcoholic beverages. However, an Emirates ID, or passport for tourists, will still be required. The change that came into effect from Sunday, was confirmed by Maritime and Mercantile International, one of the biggest alcohol retailers in the United Arab Emirates and a subsidiary of the state-owned Emirates Group.
Seera Group Rides Saudi Arabia's Efforts to Build Tourism to First Post-Pandemic Profit
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.
Saudi Arabia Details Plans for One of World's Largest Airports
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.
Dubai Scraps 30 Percent Tax on Alcohol to Woo More Tourists
In a further liberalization of regulations to attract more tourists, Dubai has scrapped the 30 percent municipality tax on alcohol.
Why Is Comedian Kevin Hart Looking to Hire an Ambassador for Abu Dhabi's Yas Island?
American comedian and actor Kevin Hart is a man on a mission as he is looking to hire an ambassador for Abu Dhabi’s Yas Island. Hart, who was appointed Yas Island’s first-ever chief island officer in May, announced the job opening on social media on Monday, calling it the “world’s best job.” The salary being offered for the two-month role is $100,000. Anyone aged 21 years or above can apply for the job, the last date for receiving entries is January 23. “No CV, previous experience or cover letter needed, just your video up to 60 seconds (videos over 60 seconds will be disqualified),” the website mentioned. Once hired, the ambassador will take part in a variety of tourism activities for Yas Island while being put up at the W Abu Dhabi for 60 days. Yas Island has also made all the video applications public in its website.
Saudi Arabia Starts Issuing Free 4-Day Stopover Transit Visa
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.
Short-Term Rentals in Saudi Arabia
Good morning from Skift. It’s Tuesday, February 7. Here’s what you need to know about the business of travel today.
Saudi Arabia Plans Massive Green Downtown for Riyadh
In line with Saudi Arabia’s Vision 2030, the recently-launched New Murabba Development Company will be developing what it calls the world’s largest modern downtown in Riyadh. The New Murabba project will be built around the concept of sustainability, featuring green areas and walking and cycling paths, according to a release. “It will also feature an iconic museum, a technology and design university, a multipurpose immersive theatre, and more than 80 entertainment and culture venues,” the release further stated. Built over an area of 19 square kilometers, the project will also have its own internal transport system and will be located at a distance of 20 minutes’ drive from the airport. As part of the project, Saudi Arabia will also be developing a 400-meter-high-cue shaped skyscraper Mukaab touted to be the world’s first immersive destination offering an experience created by digital and virtual technology with the latest holographics. The project is expected to add $48 billion to non-oil gross domestic product and create 334,000 direct and indirect jobs by 2030. The project is due to be completed in 2030.