A total of 32,621 hotel rooms are currently under construction in Saudi Arabia to meet the pent-up demand from returning pilgrims (Photo: ATM)
A research report by STR, an American data and market intelligence firm, says that a total of 32,621 hotel rooms are currently under construction in Saudi Arabia to meet the pent-up demand from returning pilgrims.
The report says that Saudi Arabia’s revenue per available room (RevPAR) recovery index stood at 52 pc, while the absence of millions of Muslim pilgrims had significantly impacted hotel performance in the country. The two holy cities of Medina and Makkah witnessed RevPAR rates of just 33 pc and 24 pc respectively in 2021.
However, now the recovery seems to be well under way, says the report commissioned by Arabian Travel Mart, which will host a session on the Saudi hotel industry during the meet from May 9-12.
STR goes on to say that although significantly lower than pre-pandemic levels, KSA’s hotel performance registered year-on-year gains in 2021 and the sector’s recovery is expected to persist throughout the coming year, with pent-up demand driving further improvements as Covid-related restrictions continue to ease.
Surprisingly, the report says that hotels in Al Khobar outperform those in Saudi Arabia’s other major cities, with RevPAR surpassing pre-pandemic levels in 2021. Riyadh, Dammam and Jeddah, meanwhile, recorded recovery index rates of 88 pc, 85 pc and 56 pc, respectively, last year.
Another report, covering outbound travel from Saudi Arabia, based on survey conducted by Colliers International shows that overseas journeys from the kingdom are set to grow to over 6 million in 2022, about 50 pc more than the 3.8 million in 2021 and 4.8 million in 2020. In the longer term, outbound tourist trips are expected to rise to over 9.2 million in 2025, although this figure would still be significantly lower than the peak of 19.75 million in 2019.
Outbound tourist expenditure is set to grow to USD 8.7 billion this year, compared to an estimated USD 5.26 billion in 2021. Total expenditure is expected to increase to USD 14.56 billion in 2025.
‘As was the case for markets the world over, the global pandemic had a major impact on Saudi Arabia’s hospitality sector. Even so, STR’s findings clearly point to an ongoing and sustained recovery, and we are looking forward to exploring the vast untapped potential of the kingdom’s burgeoning tourism sector at ATM 2022,” says Danielle Curtis, Exhibition Director ME – Arabian Travel Market.
The two surveys will be discussed during two focused sessions at ATM. The first, part of the ATM Saudi Forum, will focus on infrastructure progress, niche markets and fresh opportunities, as the country works to attract 100 million annual visitors by 2030.
The second will explore how sustainability, community inclusion, education and training, and the legacy impact of KSA’s broad-ranging tourism vision can offer a best-practice model for other global destinations.
The ATM Saudi Forum will be attended by Mahmoud Abdulhadi, Deputy Minister for Investment Attraction at the Saudi Arabian Ministry of Tourism, Captain Ibrahim Koshy, CEO, SAUDIA, Amr AlMadani, CEO, the Royal Commission for AlUla, Majed bin Ayed Al-Nefaie, CEO, Seera Group Holding, Fawaz Farooqui, Managing Director, Cruise Saudi, John Pagano, CEO, Red Sea Development Company & AMAALA and Jerry Inzerillo, CEO, Diriyah Gate Development Authority.
“While religious tourism will no doubt remain a mainstay for Saudi Arabia, the global travel community is also understandably excited about new prospects that are opening up thanks to the country’s growing investment in other segments,” says Curtis, adding “as its post-pandemic recovery continues to gather pace, ATM 2022 represents the ideal forum in which to discuss the countless opportunities offered by the kingdom’s ever-expanding tourism market.”
