Saudi hoteling sector records impressive growth
A report sees substantial growth in the Saudi Arabian hotel
sector, with estimates indicating an expansion from $27.90 billion in 2023 to
$62.57 billion by 2030.
Saudi Arabia is rapidly emerging as a prominent global
tourism destination, aiming to triple its hotel room inventory over the next
decade. This aspiration is integral to Saudi Arabia’s Vision 2030, which aims
to revolutionize the nation by attracting 100 million visitors annually by
2030. This strategic endeavor, combined with the government's commitment to
large-scale projects and tourism enhancements, has garnered significant attention
from the global hospitality industry.
Neom
to establish itself as a pioneer in the future of hospitality: Chris Newman
In 2022, Saudi Arabia welcomed 93.5 million visitors,
including both international and domestic travelers, as reported by the Saudi
Ministry of Tourism, signaling a notable upswing in the country’s tourism and
hospitality sector. Key initiatives such as Qiddiya, The Red Sea Development,
Amaala, NEOM, Al Ula, and Wadi Al Disah, launched by the Public Investment Fund
of Saudi Arabia in 2018, play a pivotal role in realizing the objectives of
Vision 2030, thereby stimulating investment and fostering the development of
new hotels across major cities.
The Saudi hotel market is anticipated to achieve a compound
annual growth rate (CAGR) of 12.23% from 2023 to 2030, positioning it as a
dominant force in the global hospitality landscape. Characterized by high
occupancy rates, substantial revenue per available room (RevPar), and
competitive pricing, the market emerges as a frontrunner in the Middle East and
Africa region, surpassing even the United Arab Emirates. Government initiatives
such as tourism investment, visa policy reforms, improved connectivity, and an
extensive events calendar have significantly bolstered the sector's success.
Marriott
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With plans to add 315,000 new hotel rooms by 2030,
representing an investment of US$ 37.8 billion, Saudi Arabia is poised to
elevate its total room count to nearly 450,000. Prominent projects like the
futuristic Neom City play a central role in this expansion. In 2023, IHG Hotels
& Resorts announced a franchise agreement to establish a Hotel Indigo in
Oxagon, marking another significant milestone in the nation’s hospitality
development.
The luxury, mid-scale, and budget segments categorize the
Saudi Arabian hotel market. Particularly, the luxury segment is witnessing
unprecedented growth, fueled by initiatives to promote tourism and attract
affluent travelers. Characterized by a blend of opulence and unique
experiences, supported by mega projects and world-class amenities, this segment
continues to dominate the market.
YOTEL
to open its first Saudi hotel in Neom’s Oxagon
Online booking platforms are increasingly preferred for
hotel reservations in Saudi Arabia, driven by convenience and transparency. The
shift towards digital and contactless services, accelerated by the pandemic, is
expected to solidify the importance of online bookings in the hotel industry.
Jeddah's hotel sector is thriving, buoyed by strategic
investments and the city’s appeal as a diverse accommodation destination.
Situated by the Red Sea and boasting a rich blend of historical and
contemporary attractions, Jeddah is a key growth driver. Similarly, Riyadh’s
hotel market exhibits robust performance, with high occupancy rates and revenue
metrics, aligning with Saudi Arabia’s ambition to become a regional commerce
and events hub.
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The report provides comprehensive analyses and insights into
various hotel groups and market segments within Saudi Arabia, encompassing
high-end, mid-scale, and budget hotels, online and offline booking platforms,
and regional market dynamics across Makkah, Medina, Riyadh, Jeddah, and Dammam.
Detailed metrics such as market size, room count, average daily rates, revenue
per available room, and occupancy rates for each region offer a thorough
overview of the Saudi Arabian hotel landscape.
Source: https://www.travelandtourworld.com/
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