Saudi Arabia’s hospitality sector is expanding quickly
31/05/22
Saudi Arabia welcomed 15 million tourists in the first three months of 2022 as the tourism sector witnessed a post pandemic revival.
Prior to the pandemic, Saudi Arabia transformed its tourist visa processes and opened up the countries attractions to citizens from around the world. Visitors are keen to explore Saudi Arabia and enjoy its UNESCO world heritage sites which include Al Ula historical city and the Al Ahla palm tree oasis.
As the Kingdom of Saudi Arabia focuses more on developing the non-oil sector, it has allocated SAR 413 billion (USD 110 billion) for the expansion of the hospitality sector. In line with the Vision 2030, the sector is advancing with 310,000 hotel rooms planned.
The expansion will see vast competition between hotel operators, but the Vision 2030 stipulates the offerings must compliment and provide choice for each location. In terms of hotel operators, NEOM and Roua Al Madinah expect to add around 80,000 room keys each. The Accor Group will continue to be the country’s largest hotel operator with around 28,000 rooms under management. Hilton Hotels will emerge as the country’s second-biggest hotel brand with almost 19,000 rooms by 2030.
The sectors development will also result in increased opportunities and possibilities in parallel industries to cater for the increasing number of visitors. These will include museums, shopping malls, theme parks, music festivals, sporting and other non-sporting events, restaurants and cafes.
At the same time, Saudi Arabia will have to introduce new regulations to accompany the tourism sector development which cover project funding and investment, construction and day to day operations once completed.
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