Dublin, Nov. 28, 2024 (GLOBE NEWSWIRE) -- The "Saudi Arabia Hotel Market Forecast Report by Hotel Type, Ordering Platform, Region, Countries and Company Analysis 2025-2033" report has been added to ResearchAndMarkets.com's offering.
Due to a number of significant government efforts aimed at growing the hotel business and raising the country's overall tourist goals, the hospitality sector in Saudi Arabia has experienced a significant expansion in recent years. According to the G20, Saudi Arabia has the world's fastest-growing travel destination. According to the UNWTO, international visitor visits to the Kingdom increased by 125% to pre-pandemic levels last year, drawing almost 94 million visitors and surpassing the recovery of the worldwide tourism sector.
Over the next six years, Saudi Arabia intends to invest more than USD 550 billion in new vacation destinations, making it the largest tourism investor globally. Its endeavors to expand its tourism and hospitality industries are the reason behind this. With almost 20 million visitors over the first three quarters of the previous year, Saudi Arabia topped the Arab rankings for inbound tourism.
The industry aspires to attain the target of 100 million annual tourist visits and contribute 10% of GDP in the next six years with the recent passage of the Act. Travel restrictions are removed, allowing a plethora of tourists to enter the Kingdom. The new visa laws, such as e-visas and visas-on-arrival for travelers from 49 countries, are to blame for the expansion of the hotel sector.
Growth Drivers for the Saudi Arabia Hotel Market
The Saudi government's Vision 2030 initiative aims to diversify the economy and boost tourism
Saudi Arabia's strategic goal, Vision 2030, aims to improve the tourism industry and diversify the economy. The plan, which was introduced by Crown Prince Mohammed bin Salman, focuses on developing a variety of industries, including tourism and hospitality, in order to lessen dependency on oil earnings. Large sums of money are being spent on the construction of new airports, transit systems, and tourism initiatives like the Red Sea Project and NEOM. In order to establish Saudi Arabia as a major travel destination and improve its overall economic situation, Vision 2030 aims to draw both domestic and foreign visitors by increasing cultural, recreational, and entertainment activities.
Increased International Tourism
The advent of new visa options, such as the e-visa, which makes entry easier for tourists, is a major factor in Saudi Arabia's increased foreign tourism. More tourists are now exploring the nation's rich culture and legacy as a result of its increased accessibility. To further attract tourists, Saudi Arabia is also sponsoring important events including athletic tournaments, concerts, and cultural festivals. These programs not only draw attention to the country's changing tourism sector but also foster a thriving social scene, making Saudi Arabia a desirable travel destination for tourists looking for unusual experiences and deep cultural interaction.
Saudi Arabia Hotel Market Overview by Regions
Regional differences exist in Saudi Arabia's hotel industry; Mecca and Medina serve religious tourists, while Riyadh and Jeddah dominate the urban lodging market. The Red Sea and new initiatives like NEOM boost travel and draw a variety of hotel construction across the country. An overview of the market by region is given below:
Makkah Hotel Market
Serving the millions of pilgrims that go to Makkah for the Hajj and Umrah, religious tourism is the main driver of the city's hotel industry. For the convenience of worshippers, the area offers a variety of high-end and low-cost hotels, with a notable concentration close to the Haram. The visitor experience is being improved by ongoing investments in hospitality services and infrastructure. During the Hajj season, demand is at its highest, so there must always be rooms available. Furthermore, projects like the Makkah Royal Clock Tower are meant to improve the area's standing as a popular pilgrimage site worldwide. The market is expected to develop as a result of more pilgrims and more amenities.
Since Makkah is preparing for a new age in hospitality, Umm Al-Qura and GAA's joint efforts represent an important turning point. In line with Saudi Arabia's Vision 2030, the SAR2.5 billion investment in the hotel industry not only meets the urgent need for better lodging but also establishes the groundwork for Makkah's long-term economic and social growth.
Riyadh Hotel Market
Business travel, government programs, and rising tourism are the main drivers of the Riyadh hotel market, which is a significant part of Saudi Arabia's hospitality industry. The city offers a wide variety of lodging choices for both domestic and foreign tourists, ranging from upscale hotels to affordable choices. While business districts draw corporate tourists, major regions like Olaya and Al Malaz are home to a large number of upscale properties. The demand for hotel rooms is increasing due to continued urban expansion and events like conferences and fairs. In order to establish Riyadh as a top business and leisure destination, the government's Vision 2030 project promotes investment in infrastructure and hotels.
Saudi Arabia Hotel Company Analysis
The major participants in the Saudi Arabia Hotel market includes Dur Group, IHG Group, Marriot International, Accor, Hilton Hotels, Al Hokair Group, Altyaar Group, etc.
Saudi Arabia Hotel Company News
In May 2023, after purchasing the City Express brand portfolio from Hoteles City Express, Marriott International introduced its 31st brand, City Express by Marriott.
In April 2023, in return for new Taiba shares, the Saudi-based Taiba Investments Company purchased a 100% share in Dur Hospitality Company. It entails adhering to the agreement the two signed in December 2022 on a potential securities exchange transaction, which includes a non-binding agreement on share swap coefficient and structuring.
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 150 |
| Forecast Period | 2024 - 2033 |
| Estimated Market Value (USD) in 2024 | $15.4 Billion |
| Forecasted Market Value (USD) by 2033 | $27.26 Billion |
| Compound Annual Growth Rate | 6.5% |
| Regions Covered | Saudi Arabia |
Key Topics Covered:
1. Introduction
2. Research & Methodology
3. Executive Summary
4. Market Dynamics
4.1 Growth Drivers
4.2 Challenge
5. Saudi Arabia Hotel Market Analysis
5.1 Market
5.2 Current and Future Hotel Room Supply
5.2.1 Luxury
5.2.2 Upper Upscale
5.2.3 Upscale
5.2.4 Upper Midscale
5.2.5 Midscale
5.3 Hospitality Market Performance (2023)
5.3.1 ADR (average daily rent per night)
5.3.2 REVPAR (Per room per night)
5.3.3 Occupancy Rate
5.4 Giga Projects with Planned Hotel Keys in Holy Cities
5.4.1 NEOM
5.4.2 Ruaa Al Madinah
5.4.3 Knowledge Economic City
5.4.4 Masar Makkah
5.4.5 Dar Al Hijrah
5.4.6 Thakher Makkah
5.4.7 Red Sea Project
5.5 Supply breakdown by operator classification Keys
5.5.1 International Brand
5.5.2 Unbranded
5.5.3 Local Brand
5.6 Saudi Arabia's Top 6 Hotel Operators Supply breakdown by Operator Classification
5.6.1 Radisson Hotel Group
5.6.2 Hilton Worldwide
5.6.3 IHG Hotels & Resorts
5.6.4 Accor
5.6.5 Marriott International
6. Market Share Analysis
6.1 By Hotel Type
6.2 By Ordering Platform
6.3 By Region
7. Hotel Type
7.1 High End Hotel
7.1.1 Market
7.1.2 Volume
7.2 Mid-Scale Hotel
7.2.1 Market
7.2.2 Volume
7.3 Budget Hotel
7.3.1 Market
7.3.2 Volume
8. Ordering Platform
8.1 Online
8.2 Offline
9. Region
9.1 Makkah
9.1.1 Market
9.1.2 Number of Rooms
9.1.3 Room Average Daily Rate (ADR)
9.1.4 Revenue per Available Room (RevPAR)
9.1.5 Occupancy Rate
9.2 Riyadh
9.3 Madinah
9.4 Jeddah
9.5 Al Khobar
9.6 Dammam
10. Porter's Five Forces Analysis
10.1 Bargaining Power of Buyers
10.2 Bargaining Power of Suppliers
10.3 Degree of Rivalry
10.4 Threat of New Entrants
10.5 Threat of Substitutes
11. SWOT Analysis
11.1 Strength
11.2 Weakness
11.3 Opportunity
11.4 Threat
12. Key Players Analysis
12.1 Overview
12.2 Key Person
12.3 Recent Development
12.4 Revenue Analysis
For more information about this report visit https://www.researchandmarkets.com/r/91x23e
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