Saturday, February 17, 2024
The report titled “Saudi Arabia Hotel Industry Analysis 2024-2030: Trends, Growth, Market Size, and Forecasts – Understanding the Impact of Inflation and Exploring Opportunities,” is now available on ResearchAndMarkets.com.
The Saudi Arabian hotel sector is projected to grow significantly, with estimates suggesting it will expand from $27.90 billion in 2023 to $62.57 billion by 2030. The nation is rapidly becoming a top global tourism destination, aiming to increase its hotel room inventory threefold over the next decade. This ambition is part of Saudi Arabia’s Vision 2030, which seeks to transform the country by welcoming 100 million visitors annually by 2030. This initiative, coupled with the government’s dedication to mega projects and tourism enhancements, is drawing substantial attention from the global hospitality industry.
In 2022, Saudi Arabia saw 93.5 million visitors, both international and domestic, as stated by the Saudi Ministry of Tourism, marking a significant upswing in the country’s tourism and hospitality sector. The launch of major ventures such as Qiddiya, The Red Sea Development, Amaala, NEOM, Al Ula, and Wadi Al Disah by the Public Investment Fund of Saudi Arabia in 2018 plays a crucial role in realizing the Vision 2030 objectives, thereby fostering investment and the development of new hotels across major cities.
The Saudi hotel market is expected to experience a compound annual growth rate (CAGR) of 12.23% from 2023 to 2030, positioning it as a leading force in the global hospitality arena. The market is characterized by high occupancy rates, substantial revenue per available room (RevPar), and competitive pricing, making it the forefront player in the Middle East and Africa region, outshining even the United Arab Emirates. The government’s strategic efforts, including investment in tourism, visa policy reforms, improved connectivity, and a robust events calendar, have significantly contributed to the sector’s success.
With plans to add 315,000 new hotel rooms by 2030, estimated at a cost of US$ 37.8 billion, Saudi Arabia is set to elevate its total room count to nearly 450,000. Highlight projects, such as the futuristic Neom City, are central to this expansion. In 2023, IHG Hotels & Resorts announced a franchise agreement to open a Hotel Indigo in Oxagon, marking another milestone in the nation’s hospitality development.
The luxury, mid-scale, and budget segments categorize the Saudi Arabian hotel market. The luxury segment, in particular, is witnessing unprecedented growth, driven by the country’s initiatives to boost tourism and attract affluent travelers. This segment is defined by a blend of opulence and unique experiences, supported by mega projects and world-class amenities, ensuring its continued dominance in the market.
Online booking platforms are increasingly becoming the preferred method for hotel reservations in Saudi Arabia, driven by the convenience and transparency they offer. The shift towards digital and contactless services, accelerated by the pandemic, is expected to further cement the importance of online bookings in the hotel industry.
Jeddah’s hotel sector is thriving, fueled by strategic investments and the city’s appeal as a destination with diverse accommodations. Its advantageous position by the Red Sea and a rich blend of historical and contemporary attractions are key growth drivers. Similarly, Riyadh’s hotel market is experiencing robust performance, with high occupancy rates and revenue metrics, aligning with Saudi Arabia’s ambition to become a regional hub for commerce and events.
The report covers detailed analyses and insights into various hotel groups and market segments within Saudi Arabia, including high-end, mid-scale, and budget hotels, online and offline booking platforms, and regional market dynamics across Makkah, Medina, Riyadh, Jeddah, and Dammam. Each region’s market size, room count, average daily rates, revenue per available room, and occupancy rates are meticulously detailed, providing a comprehensive overview of the Saudi Arabian hotel landscape.
Saturday, April 27, 2024
