SAUDI HOSPITALITY SECTOR TO GROW 13.5 PERCENT PER ANNUM TO 2022

The Arabian Travel Market (ATM), is back! Here’s what you should keep in mind when attending the 25th edition of the show, taking place at Dubai World Trade Centre

Saudi Arabia is expected to drive growth in the hospitality market, with a 13.5 percent CAGR, higher than the established markets of the UAE (10 percent) and Oman (almost 12 percent). The Kingdom is expected to see a vast expansion of its hotel and resort inventory, along with a steep increase in airport passengers, as Crown Prince Mohamed bin Salman continues to drive economic and social reforms, including direct investment in tourism. Colliers’ study found that religious tourism in the Kingdom is still driving demand, with 30,000 rooms opened during 2017, and a further 40,020 guestrooms in 89 projects currently under construction, compared to 35,050 rooms in the UAE. Last year, Saudi Arabia set the stage to expand to leisure tourism, as it pursues targets of 30 million visitors annually by 2030. As a result, 2018 will see the first tourism visas granted to international travelers and, for the first time, women aged 25 and older will now be able to obtain a single entry, 30-day tourist visa without a male chaperone. The Kingdom has announced a series of leisure projects in recent months, including the creation of a Six Flags theme park in Riyadh by 2021 and a Red Sea resort, built on 100 miles of sandy coastline and backed by investment from Virgin Group founder, Sir Richard Branson. Featuring hotels, residences and a transport hub, the project will create 35,000 jobs, adding SAR 15 billion to the economy. Aligned with the vision, the Public Investment Fund (PIF) ploughed SAR 10 billion into entertainment ventures in 2017 and, under the National Transformation Programme (NTP) the Kingdom has invested SAR 171.5 billion in tourism development.