Alhokair Chairman says mergers possible in tourism, future needs large alliances

Mergers in the tourism sector are possible as well as required, Chairman of Abdulmohsen Alhokair Group for Tourism and Development (Alhokair Group), Majid bin AbdulMohsen Alhokair, said during a meeting organized by Small and Medium Enterprises General Authority (Monsha'at).

During the meeting, titled "Promising opportunities in the tourism sector and their importance to achieving Vision 2030", Alhokair said the current time is the time for alliances.

The capabilities in the coming period require large alliances, he indicated.

He noted that tourism is a long-term investment, especially for companies that build large assets such as mega resorts and hotels and accompanying services.

The returns on these investments are long-term, which require alliances, he concluded.

According to data compiled by Argaam, the boards of directors of Dur Hospitality Co. and Taiba Investments Co. started on June 13 preliminary discussions to study a possible merger.