Released today was the “Saudi Arabia Hotel Market, Size, Forecast 2024-2030, Industry Trends, Growth, Share, Outlook, Impact of Inflation, Opportunity Company Analysis” report as an addition to the offering on ResearchAndMarkets.com. The report features Dur Group, Al Hokair Group, Altyaar Group, IHG, Marriot International, Accor, and Hilton.
Saudi Arabia is on a trajectory to become a most sought-after tourist destination worldwide. Saudi Arabia has bold plans to triple its hotel room count number in the subsequent decade. As a part of its Vision 2030 plan, which aims to convert the country, Saudi Arabia has opened its doors to global travelers, targeting a magnificent 100 million annual visitors by 2030. The government’s commitment to developing GIGA-initiatives and tourist destinations has attracted maximum interest from hotel and tourism companies.
The country has welcomed 93.5 million overseas and domestic travelers, according to the Saudi Arabia Minister of Tourism in 2022. The state’s hospitality industry is poised for rapid increase, leading the global tour and hospitality sector. Major projects like Qiddiya, The Red Sea Development, Amaala, NEOM, Al Ula, and Wadi Al Disah, initiated by the Public Investment Fund of Saudi Arabia in 2018, are pivotal in achieving Vision 2030 goals. This influx of religious and leisure journeys has spurred funding options, beginning several new hotels in key towns.
Saudi Arabia Hotel Market to Register CAGR of 12.23% during 2023-2030
The Saudi Arabian hotel market is one of the strongest globally, with staggering metrics of excessive occupancy rates, strong revenue per vacant room (RevPar), and competitive average room costs. Saudi Arabia currently leads the Middle East and Africa in motel construction hotels, surpassing the United Arab Emirates. The government’s strategic initiatives, which include investments, visa reforms, more suitable connectivity, and a properly planned calendar of events showcasing numerous points of interest, were instrumental in the hotel segment’s extraordinary achievement.
Saudi Arabia is embarking on an enormous expansion of its hospitality and tourism sectors, with plans to introduce 315,000 new hotel rooms at an approximate value of US$37.8 billion by 2030.
This formidable endeavor will increase the overall available hotel rooms to nearly 450,000, with prominent plans like the futuristic Neom City spearheading this expansion.
In 2023, IHG Hotels & Resorts, a renowned worldwide hotel organization presenting 6,000 properties spanning 18 companies, has inked a franchise settlement for the forthcoming establishment of a Hotel Indigo in Oxagon, a coastal commercial city within the northwestern vicinity of Saudi Arabia, is about to benefit from this thrilling addition to its hospitality landscape.
Visionary Initiatives And Top-Notch Amenities
By Hotel Type, the Saudi Arabia Hotel Market is split into High-End, Mid-Scale, and Budget.
In the dynamic Saudi Arabian hotel market landscape, the high-end motel section is rising as the epitome of increase and prosperity. This segment is experiencing an awesome surge, outpacing all others in expansion and development. Arabia’s strategic tasks to sell tourism and appeal to high-spending travelers have played a pivotal role in fostering the high-end hotel region.
The country’s charming combination of luxury and lifestyle lures discerning travelers seeking opulent experiences. With its visionary Giga projects, world-magnificence services, and commitment to excellence, the high-end hotel section will continue its meteoric upward thrust within the Saudi Arabian hospitality industry.
Online Booking Takes the Lead
By Ordering Platform, the Saudi Arabia Hotel market is divided into Offline and Online.
The rapid digitalization of the travel sector, coupled with consumers’ desire for convenient and transparent reserving processes, has driven the surge in online hotel reservations. Mobile apps and websites provide travelers with various options, opinions, and pricing, making finding accommodations that suit their preferences and budgets easier.
Moreover, the ongoing worldwide shift toward online and contactless transactions, extended by the COVID-19 pandemic, solidifies online booking systems’ dominance within the Saudi Arabian hotel industry. This trend is anticipated to maintain its upward trajectory, shaping the future of hotel bookings within the region.
Dynamic Jeddah Teeming with Hospitality
In Saudi Arabia, the Hotel industry is broken into Makkah, Riyadh, Madinah, Jeddah, Al Khobar and Dammam.
Attracting a wide variety of visitors, Jeddah offers various hotels, from luxury chains to boutiques. The sector experiences growth with new investments and renovations due to Jeddah’s strategic location alongside the Red Sea and rich historical and modern attractions. Supported by the Saudi government’s tourism commitment, Jeddah’s hotels are poised to extend, catering to a growing influx of site visitors.
Riyadh’s accommodations maintained sturdy occupancy rates and relatively higher daily rates, resulting in improved revenue per available room (RevPAR), reaching its highest since 2011. The Saudi capital has positioned itself as a distinguished venue for global occasions and conferences, aligning with the Kingdom’s aspiration to grow into a regional trade and commercial enterprise hub.
