Market Trends of Hospitality Industry In The Kingdom Of Saudi Arabia
An Increase in the Number of Hotels and Suggested Projects
A stunning eighty hotel projects are anticipated to be finished in Saudi Arabia in the current year, according to TopHotelsProjects. By the end of this decade, the Kingdom of Saudi Arabia hopes to welcome 100 million tourists within its borders as part of its Vision 2030 strategy. First, the Diriyah Gate Development Authority (DGDA) unveiled Diriyah Square, the commercial center of the USD 50 billion Diriyah giga project on the outskirts of Riyadh, scheduled to open in the current year. A total of 38 foreign hotel brands are anticipated. 16 of these are verified during the development thus far.
The enormous hotel giant Accor disclosed its intentions to grow in Saudi Arabia. Three agreements were reached to establish significant hotel and real estate projects across the country. Medina's Rua Al Madinah is one of these projects. Saudi Arabia plans to construct 315,000 new hotel rooms by the coming six years, with an estimated development cost of USD 37.8 billion, as part of its continuous efforts to diversify its economy away from the oil sector.
Increase in Online Hotel Booking in Saudi Arabia
According to an Insight Out Consulting analysis, the Middle East tourism market is expected to grow by 40% in the coming two years, with Saudi Arabia and the United Arab Emirates leading the way. The value of online travel reservations in the Middle East rose by 100% in the current year compared to the previous year. This growth is attributed to several factors, including an increase in tech-savvy travelers, the use of customer-facing tech solutions like AI chatbots, mobile apps, and loyalty programs, and the integration of increasingly complex online back-end systems by travel suppliers, particularly hotels, such as booking engines and distribution channels. Half of all reservations made in the KSA and UAE are anticipated to be made online in the coming two years.
Furthermore, Saudi Arabia's high-end and mid-scale hotels play a significant role in the rapid rise of the financial community through online hotel booking. Travelers to Saudi Arabia, both local and foreign, are more likely than ever to book their lodging online, primarily for trips to Makkah, Medina, Riyadh, Jeddah, and Dammam. The Saudi Arabian government is committed to implementing Vision 2030 in order to raise the living standards of its citizens.
