Saudi Arabia is rapidly transforming into a global tourism hub and is targeting 150 million visitors annually by 2030. Industry leaders at the recent Future Hospitality Summit in Riyadh forecast the Kingdom would feature in the world’s top five travel destinations by 2040.
Diversified Tourism Offerings and Additional Hotel Rooms
The country is significantly boosting its tourism and hospitality sectors under the Saudi Vision 2030 economic diversification strategy. Consequently, it plans to deliver 362,000 new hotel rooms by the end of the decade to meet growing demand. Experts acknowledged the Kingdoms clear focus on diversified tourism offerings, reduced seasonality and workforce development. Furthermore, they highlighted its successful investment policy of driving long-term strategic alignment between the public and private sectors.
The Kingdom is Positioning Tourism As a Key Pillar of Economic Growth
Having already hit its initial goal of 100 million visitors, the country is reinforcing its ambition to become a premier global destination. However, to sustain momentum and solidify tourism as a key pillar of long-term economic growth, it must continue to enhance its tourism offerings. Notably, it is exploring additional ways of developing meaningful reasons for global visitors to choose to holiday in Saudi Arabia. Recently, progress has been made by addressing long-standing seasonality issues and a reliance on religious tourism. Initiatives including the Riyadh and Jeddah Seasons plus destination management organisations including AlUla and the Red Sea have successfully contributed. Furthermore, the Kingdom is becoming a global destination covering leisure tourism, medical tourism, religious tourism, agricultural tourism and corporate tourism. Therefore, such initiatives require a wide-ranging hotel supply strategy which includes focussing on secondary cities, thereby balancing overall demand. Accordingly, investment in a diversified brand hotel portfolio will successfully increase the average daily rate (ADR) of hotels.
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