Saudi Arabia poised for steady tourism growth: AHIC experts

The Kingdom of Saudi Arabia will see a steady growth in its travel and tourism industry with almost SAR 33.5 billion to be invested in the sector until 2020. These key statistics were disclosed by experts who attended the recently concluded Saudi Arabia briefing of the Arabian Hotel Investment Conference (AHIC) in Riyadh.

The event in Saudi followed similar briefings in key tourism markets across the region, such as Oman and Qatar. In Riyadh, the prospects of Saudi Arabia’s travel and tourism sector were discussed as well as trends analysed that will have an impact on its ability to attract more tourists.

Philip Wooller, area director – Middle East & Africa, STR Global said: “There are about 66,438 rooms that are in construction in the Middle East and Africa region. Majority of these are classified as Upscale (32%) and Upper Midscale (22%).”

Further, data from the World Trade and Tourism Council (WTTC) show travel and tourism investments in Saudi Arabia have grown at a CAGR of 5.8% since 2001 and are estimated to have reached SAR 20.55 bn at year-end 2012. It is expected to increase at an annual rate of 6.7% to reach SAR 33.5 bn of total investments in 2020.

According to Filippo Sona, director, head of hotels MENA, Colliers International: “There is a definitive gap between locally branded furnished apartment supply and internationally branded serviced apartments. While some markets have a large amount of forthcoming stock, other markets including Makkah and Madinah have limited stock in the pipeline. 2014 will see the introduction of many new internationally branded serviced apartment concepts such as Fraser Place and Fraser Suites in Riyadh, two Citadines properties in Jeddah and a Residence Inn in Jazan.”

AHIC will include key stakeholders from the hospitality industry such as Carlson Rezidor Hotel Group, IHG, Jumeriah Group, King Abdullah Economic City, Habtoor Group, ACCOR, Hilton Worldwide and , Marriott International among others.