Investment in tourism will remain a priority in Saudi Arabia despite falling oil prices and increased budgetary pressures, according to the kingdom’s top industry official.
The underserved three-star and four-star hotel sector is a particular focus, Fahd Hamidaddin, CEO of the Saudi Tourism Authority, told AGBI.
“The darker it gets, the more reason we should focus on tourism,” Hamidaddin said.
“We say tourism is the new oil. That’s exactly why we will continue investing and double down on tourism at times like this.”
Speaking at the Arabian Travel Market (ATM) exhibition in Dubai, Hamidaddin said that the country expects to build 360,000 hotel rooms by 2030.
Saudi Arabia is scheduled to host the 2029 Asian Winter Games, 2030 Riyadh Expo, and the 2034 World Cup. It has also increased its annual tourism targets to 150 million by 2030.
The kingdom reached its previous visitor number target early in 2023 when it topped 100 million arrivals for the first time.
“There is so much demand, and not just in the main cities, but also in the new developing cities,” said Hamidaddin.
While the biggest expansion is expected in the urban centres of Riyadh, Jeddah and the holy cities, the fastest growth is in provincial destinations like Aseer in the country’s south, he said.
Many completed tourism projects cater to the upper-end of the market. To date, Saudi Arabia’s promotional efforts have centred on flagship projects like Red Sea Global and AlUla, which each saw an increase in visitors last year but remain out of reach for most middle-income consumers. Hamidaddin said that he expects most announcements for upcoming developments to cater to the middle market.
“Destinations are not promoted by the four-star and the three-star hotels,” said Hamidaddin. “If you look at the Dubai promotion, you will see Burj Al-Arab – how many people go to Burj Al-Arab? The real capacity is not in those. The opportunity is in the mid-market.”
Luxury accommodation is unlikely to make up more than 15 percent of the increased capacity by 2030, he said.
Saudi Arabia is now targeting foreign tourism. While domestic travellers make up the bulk of the market, the hope is that 70 million visitors will come from abroad by 2030.
It finds itself competing with more established destinations like Egypt and Dubai for foreign tourism, but Hamidaddin said he believes the rise of Saudi Arabia as a destination will be a boost for the Middle East as a whole.
“These travellers don’t fly to a city, they travel to a region”, he said. “We’re saying, ‘Welcome to Arabia’ as Saudi. But really, Arabia is the whole region. And the rise of Arabia is like a rising tide that lifts all ships with it.
“And if there is competition at the hotels and resorts level, fantastic. The beneficiary is the consumer.”
Credit: ‘https://www.agbi.com
The underserved three-star and four-star hotel sector is a particular focus, Fahd Hamidaddin, CEO of the Saudi Tourism Authority, told AGBI.
“The darker it gets, the more reason we should focus on tourism,” Hamidaddin said.
“We say tourism is the new oil. That’s exactly why we will continue investing and double down on tourism at times like this.”
Speaking at the Arabian Travel Market (ATM) exhibition in Dubai, Hamidaddin said that the country expects to build 360,000 hotel rooms by 2030.
Saudi Arabia is scheduled to host the 2029 Asian Winter Games, 2030 Riyadh Expo, and the 2034 World Cup. It has also increased its annual tourism targets to 150 million by 2030.
The kingdom reached its previous visitor number target early in 2023 when it topped 100 million arrivals for the first time.
“There is so much demand, and not just in the main cities, but also in the new developing cities,” said Hamidaddin.
While the biggest expansion is expected in the urban centres of Riyadh, Jeddah and the holy cities, the fastest growth is in provincial destinations like Aseer in the country’s south, he said.
Many completed tourism projects cater to the upper-end of the market. To date, Saudi Arabia’s promotional efforts have centred on flagship projects like Red Sea Global and AlUla, which each saw an increase in visitors last year but remain out of reach for most middle-income consumers. Hamidaddin said that he expects most announcements for upcoming developments to cater to the middle market.
“Destinations are not promoted by the four-star and the three-star hotels,” said Hamidaddin. “If you look at the Dubai promotion, you will see Burj Al-Arab – how many people go to Burj Al-Arab? The real capacity is not in those. The opportunity is in the mid-market.”
Luxury accommodation is unlikely to make up more than 15 percent of the increased capacity by 2030, he said.
Saudi Arabia is now targeting foreign tourism. While domestic travellers make up the bulk of the market, the hope is that 70 million visitors will come from abroad by 2030.
It finds itself competing with more established destinations like Egypt and Dubai for foreign tourism, but Hamidaddin said he believes the rise of Saudi Arabia as a destination will be a boost for the Middle East as a whole.
“These travellers don’t fly to a city, they travel to a region”, he said. “We’re saying, ‘Welcome to Arabia’ as Saudi. But really, Arabia is the whole region. And the rise of Arabia is like a rising tide that lifts all ships with it.
“And if there is competition at the hotels and resorts level, fantastic. The beneficiary is the consumer.”
Credit: ‘https://www.agbi.com
