The Kingdom of Saudi Arabia will see a steady growth in its travel and tourism industry with almost SAR33.5 billion to be invested in the sector until 2020, according to experts attending the Arabian Hotel Investment Conference.
Experts will gather to discuss the prospects of Saudi Arabia’s travel and tourism sector as well as analyse the trends that will have an impact on its ability to attract more tourists.
Data from the World Trade & Tourism Council show travel and tourism investments in Saudi Arabia have grown at a CAGR of 5.8 per cent since 2001 and are estimated to have reached SAR 20.55 billion at year-end 2012.
It is expected to increase at an annual rate of 6.7 per cent to reach SAR33.5 billion of total investments in 2020.
In Saudi Arabia there is a definitive gap between locally branded furnished apartment supply and internationally branded serviced apartments stemming from inconsistent service standards, poor construction standards, and a lack of ancillary facilities.
The current demand for furnished apartments stems almost exclusively from Saudi Nationals.
The SCTA has estimated that approximately 89 per cent of overall demand in KSA for furnished apartment units stems from the local market, which is a direct consequence of the lack of internationally branded supply.
Given existing market conditions and forthcoming supply, Colliers’ econometric model has indicated that there is scope for a further 6,495 units over and above the forthcoming supply across the Kingdom of Saudi Arabia between 2013 and 2017.
The primary scope for development of these units is in the province of Makkah, which contains the two key cities of Makkah and Jeddah.