Saudi Arabia’s Tourism Minister, HE Ahmed Al-Khateeb revealed that the Kingdom is investing US$800 billion in the sector over the next ten years.
Speaking at the 10th edition of the Arab-China Businessmen Conference on Sunday, Al-Khateeb said that travel and tourism counts for 4.5 percent of Saudi Arabia’s GDP, marking an increase from three percent in 2019.
Saudi Arabia spends US$110 billion to become world leader in luxury hotels
Kingdom of Saudi Arabia is currently developing or planning more than US$1 trillion worth of real estate and infrastructure projects, which includes 315,000 hotel rooms. US$110 billion of that figure is solely for hotels, most of which are luxury properties.
These ambitious initiatives align with the country’s Vision 2030 strategy. Over the next four to five years, the number of hotel rooms is projected to nearly double to approximately 200,000. By 2028, at least 50 percent of the proposed supply is expected to be operational, as some existing properties make way for newer, more competitive, and appealing hotels and resorts.
Leading real estate consultancy Knight Frank, asserts that KSA is poised to showcase its vision of an ultra-modern future to a global audience. The country’s real estate landscape will undergo a transformative shift, redefining tourism, living, and lifestyle. A diverse array of giga and mega projects will play a significant role in achieving this goal.
Knight Frank’s research on KSA hotels, excluding the giga projects, reveals that there are currently 129,000 hotel and serviced apartment rooms in the country. By 2030, this figure is expected to increase by more than 60 percent to reach 212,000 rooms in various sectors, including 5-star, 4-star, 3-star, and below, as well as serviced apartments.
The development cost for 4-star properties alone amounts to almost half of the total investment of $21.3 billion. Furthermore, the Kingdom’s giga projects contribute to nearly 73 percent of the hotel supply pipeline, resulting in a 62 percent surge in the number of 4- and 5-star hotel rooms by the end of the decade.
Saudi Tourism Authority says “tourism is the new oil” as 100 million visitor target is raised
Saudi Arabia will increase the 100 million visitor target it set as part of the Saudi Vision 2030 programme.
The number was first set in 2016 when the Vision was first announced, however, in 2022, the Kingdom welcomed 77 million domestic travellers and 16.5 million international, adding up to 93.5 million.
Dubai, the region’s longstanding tourism leader, has 14.5 million international visitors in 2022.
As the 100 million mark was almost reached eight years ahead of schedule, Saudi Tourism Authority’s (STA) CEO Fahd Hamidaddin said the goal post will move.
Source: Hotelier Middle East
