Saudi Arabia's Sovereign Wealth Fund Sets up Tourism Investment Company
25.08.2023 - 13:06
/ skift.com
/ Peden Doma Bhutia
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.
What Will the Tourism Investment Company do?
Involving the Private Sector: The company will help the private sector by partnering on investments and by creating an attractive environment for local suppliers, contractors, and small and medium-sized enterprises to develop tourism projects and destinations.
Other Tourism-Related Companies Owned by PIF:
We read JLL’s second quarter market overview report and this is what we found out about the hotel market in Dubai and Abu Dhabi:
For Dubai
Dubai’s hotel market began to show signs of stabilization in the second quarter. While average daily rates (ADR) decreased by 6% to $188, occupancy increased to 78% from January-June.
However: The decline in rates is not a sign of a slowdown but rather a healthy indicator of the market finding its balance, JLL said. In the second quarter, around 1,000 keys were added in Dubai, increasing the total supply to 151,000 keys. By the end of this year, another 6,000 keys are slated to be added.
For Abu Dhabi
Hotel Figures: The hotel industry maintained its steady growth from January-June in Abu Dhabi. Average daily rate increased by 26% to $137, while city-wide occupancy surged to 71%. Revenue per available room went up 28%. Abu Dhabi’s total stock remained stable at 32,500 keys and the capital is slated to add another 200 keys by the end of this year.
What? Dubai’s sustainable tourism stamp seeks to serve as a validation of hotels’ dedication to sustainability and showcase its sustainable practices. The stamp will feature a three-tier scheme with categories ranging from Gold, Silver and Bronze.
Who? The Department of Economy and Tourism (DET) has developed the new stamp in collaboration with Dubai’s hospitality sector. DET announced that the accreditation process would be overseen by a committee of senior industry professionals “to ensure integrity and independence, with the initiative designed based on global best practices.”
How Does it Work? To obtain the stamp, hotels of all classifications must meet the highest standards of DET’s 19 sustainability requirements, which include:
When? Nominations for hotel establishments to obtain the Dubai Sustainable Tourism Stamp will begin on August 3 and end on August 31.
Which Hotel Group: IHG Hotels & Resorts.
Brand Regent Hotel.
Where Saudi Arabia.
When The hotel is expected to open in mid-2024
Other Destinations Featuring the Regent Brand: Bali, Santa Monica and Hong Kong.
One of the first new generation Regent Hotels to open globally, Regent Jeddah will feature 182 rooms and five