Published on : Friday, February 1, 2019
Its new research shows that with a 13 percent rise in hotel room numbers during 2017 and an extra 48,000 being constructed, Saudi Arabia is radically growing its hotel offerings, comprising notable interest from international hotel groups.
As per the report, Saudi Arabia’s recent growth in tourism has been motivated by three prime demand pools – leisure, pilgrim and corporate visitors.
Travel and tourism accounts for 9.4 percent of the total GDP of Saudi Arabia, with traveler expenditure rising by 10.5 percent per annum to $14.8 billion, Savills said.
As the country expands its economy, in line with the Vision 2030 plans, foreign arrivals are due to increase on average by 4 percent every year, it added, citing the World Travel and Tourism Council (WTTC), reaching figures of 22.1 million by 2025.
“The diversification of Saudi Arabia’s economy has provided a boost for employment and its GDP outlook. Major hotel groups are driving construction trends across the country as they aim to meet the demands of an ever-increasing number of domestic tourists and international visitors. We think this trend is likely to continue for many years ahead, as both private and public capital is invested into the tourist infrastructure,” said David O’Hara, Savills’ head of Saudi Arabia.
This is being aided by government efforts to meet the needs of this inflow in visitor arrivals.
Vision 2030 has kept sideways $64 billion to spend behind culture, leisure and entertainment projects in the next decade, which will considerably add to the magnetism of the country as a touristic destination, according to Savills.