Quoted from Al-Arabiya News Network
The noticeable increase in the number of local and foreign tourists and visitors to the Kingdom of Saudi Arabia has highlighted the need for the development of a larger range of hospitality projects to meet the growing demand for hotel rooms. The tourism sector in Saudi Arabia achieved a record number in 2022, with the opening of 12,000 hotel rooms, the highest rate globally in the hotel and hospitality industry.
According to estimates by Knight Frank, the strong growth rates are expected to continue until 2030, with the number of hotel rooms projected to rise from around 128,000 rooms currently to approximately 403,000 rooms by 2030, representing a jump of about 215%. The total new rooms will be distributed by 2030, with 37% for 5-star hotels, 36% for 4-star hotels, 17% for 3-star and below, and 10% for hotel apartments.
The total cost of constructing these hotel rooms is $21.2 billion, excluding the costs related to "giga Projects" hotels such as the Red Sea, Qiddiya, and NEOM, which alone will account for 225,000 hotel rooms by 2030.
For comparison purposes, the number of hotel rooms in the UAE is currently estimated at 200,000 rooms, while in Egypt it is 211,000 rooms, and in Turkey it is around 455,000 rooms. This increase in Saudi Arabia's hotel capacity aligns with the expectations of attracting 100 million visits by 2030, amidst gradual improvement in numbers since the COVID-19 pandemic.
The development of tourist destinations and the increase in entertainment events, such as Riyadh Season and Saudi Winter, along with the efforts of the Saudi Tourism Authority to promote them intensively domestically and globally, serve as incentives to increase hotel capacity, along with improving occupancy rates. The occupancy rate for the period from January to August of this year increased by 10% compared to the same period last year, reaching 58%, and the average cost of a hotel night during the period rose to 515 riyals. Additionally, hotel room revenues available increased by 36% compared to the previous year's level.
26-06-2023