Published on : Monday, January 25, 2016
Tourist accommodation sector ever since its inclusion within SCTH’s authority in 1429 has gained remarkable leaps in terms of either number of facilities, size of the investment, private sector regulatory development, or increased job opportunities for Saudis.
While the number of hotels and furnished condominiums in 2004 were 2,139 facilities, it jumped in 2015 to 5,868 facilities. The number of hotel rooms rose from 104,380 to 281,563 by the end of 2015, at the same time, the number of accommodation units in furnished apartments rose from 51,768 in 2004 to 165,040 units in 2015.
The number of global hotel companies that entered the Saudi market rose from 5 to 25 after SCTH took over control of the sector, and after the actions for sector classification and regulatory control in place initiated.
Total number of tourism sector employees have also doubled by the end of 2015 to 113,48, of which 28% are Saudis.
Development of tourist accommodation sector is one of the most notable achievements of SCTH, which made a paradigm shift for this sector after the issuance of SCTH statute on 24/03/2003, which defined the powers of SCTH and the transfer of authority to supervise the tourist accommodation sector, and also established the organizational framework for the relationship with stakeholders in the development of tourist activities.
SCTH from the very beginning began to create a qualitative shift in accommodation sector through the following:
Further investments are expected in the two holy cities besides the rise of hotel investments in other major Saudi cities, especially the three-star hotels, resorts and high-class furnished apartments.
In the light of remarkable growth seen by Saudi market in the area of hotel investment, by 2020 a large number of hotels of different categories are expected to be established with an investment size estimates at SR 143.9 billion.
Any one visiting the Kingdom today can notice a large number of properties under construction in various degrees of classification, together with many hotel names are entering the Saudi market for the first time or as an expansion of the previous existence.
There are several mega hospitality projects underway in a number of Saudi cities such as King Abdullah Economic City in Riyadh and Jabal Omar Project in Makkah and others.