Arab News, Thu, Apr 25, 2024 | Shawwal 16, 1445
Saudi Arabia to develop 320k new hotel rooms by 2030: Knight Frank
Saudi Arabia:
Saudi Arabia is gearing up to expand its
hospitality sector by developing 320,000 new hotel rooms by 2030, according to
an analysis by global property giant Knight Frank.
The consultancy’s study disclosed that as much as
67 percent of the planned hotel room supply in the Kingdom would fall in the
“upscale” or “luxury” categories, referring to 4-star and 5-star accommodations,
respectively.
This move aims to cater to the projected surge in
tourism, with 150 million domestic and international tourists expected by
2030.
“With a target of welcoming 150 million visitors
by 2030 — a 50 percent increase from its previous goal — the government is
actively exploring various strategies to attract to international travelers,”
Partner and Head of Hospitality at Tourism and Leisure Advisory in Middle East
and Africa Turab Saleem said.
Saleem noted that this includes the development
of cultural and entertainment offerings nationwide, which complement existing
attractions like the Jeddah F1 Grand Prix and numerous entertainment seasons.
“Noteworthy additions include theme parks such as
Boulevard World in Riyadh, alongside the licensing of 24 additional theme parks
by the Saudi General Entertainment Authority over the past year,” he added.
The consultancy’s analysis further revealed that
Accor Hotel Group will slip from first to second largest hotel room operator in
the country with an estimated 25,400 keys under management by 2030.
Meanwhile, Marriott International will likely
emerge as the most prominent hotel operator in the Kingdom, with around 26,200
hotel keys under management by 2030, Knight Frank disclosed.
Furthermore, Riyadh’s winning bid to host the 2030
World Expo is projected to pump a significant economic boost of $94.6 billion
into the nation’s capital, with an estimated 40 million visitors expected during
the six-month-long exhibition.
Consequently, this underscores the need to provide
adequate accommodation for hotel staff. According to the World Trade
Organization, 4-5-star hotels, on average, require 1 to 2 staff per room.
Accordingly, this suggests somewhere between
232,000 and 387,000 key workers could require accommodation in this segment of
the Kingdom’s hospitality market.
“Notwithstanding that worker-to-room ratios in
Saudi can sometimes be lower than global averages, the provision of key worker
accommodation for the hospitality sector will be essential ensure its future
success,” Partner and Head of Research in the Middle East and North Africa
Faisal Durrani said.
“Not only does accommodation of this type help
to mitigate against staff attraction and retention issues, but it also creates
investment grade assets,” Durrani added.
By the end of 2023, Saudi Arabia welcomed almost
100 million domestic and international tourists, with the tourism and
hospitality sector contributing to nearly 6 percent of the country’s gross
domestic product.
This indicates that the sector is well on track to
achieving the government’s 10 percent target by the decade’s end.