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Saudi Arabia hotel sector is expected to witness continued growth, fuelled by increasing demand from tourists, according to a new report by Savills.
The report indicates that with a 13 percent increase in number of hotel rooms during 2017 and an extra 48,000 being constructed, Saudi Arabia is dramatically increasing its hotel offering, including notable interest from international hotel groups.
“Major hotel groups are driving construction trends across the country as they aim to meet the demands of an ever-increasing number of domestic tourists and international visitors. We think this trend is likely to continue for many years ahead, as both private and public capital is invested into the tourist infrastructure,” said David O’Hara, Savills’ head of Saudi Arabia.
According to the Savills report, this is being supported by government initiatives to meet the needs of this surge in visitor arrivals.
Over the past three years, major brands have contributed increased investment into Saudi Arabia, with Marriott International, Rocco Forte Hotels, Hilton and Swiss-Belhotel International opening hotels in the Kingdom.
Savills also foresees continuing upward trends towards corporate traveler demand, as the country grows alternative industries away from its traditional oil-based economy. Meanwhile, underpinning the visitor demand is investment into transportation infrastructure.
“Improving the transport network for domestic and international travelers is vital for the sustainable growth of tourism in the Kingdom. As such, we expect heavy investment into the connectivity infrastructure to support the implementation of Vision 2030,” O’Hara said.
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