16,000 new hotel rooms for Riyadh and Jeddah by 2018

Updated 22 April 2015

16,000 new hotel rooms for Riyadh and Jeddah by 2018

A new report published by Jones Lang LaSalle (JLL) for The Hotel Show Saudi Arabia 2015 reveals that the major cities of Saudi Arabia — Riyadh and Jeddah — are forecast to see an increase of 16,000 new hotel rooms by 2018.
Of these, over 50 percent will be part of new five-star hotel developments, as international hotel brands put in place ambitious expansion plans.
The number of rooms in Jeddah is expected to increase by 2,700 in 2015 alone.
AccorGroup has plans to open nearly 10 hotels by 2018, while current market leader, InterContinental Hotels Group, which has 24 hotels throughout the Kingdom, has announced the opening of a further 9 outlets including the world’s largest Holiday Inn in Makkah.
Pascal Gauvin, chief operating office, India, Middle East & Africa at InterContinental Hotels Group (IHG), said: “Saudi Arabia has been one of our strongest markets and a key focus for us within the region since we entered 40 years ago. Our largest presence in the Middle East is in Saudi Arabia where we have 24 hotels open across our InterContinental, Crowne Plaza and Holiday Inn brands, and a further nine in the pipeline due to open in the next three to five years.”
He continued: “The positive reports we are seeing on projected growth in visitor arrivals contribute to our optimism for the market — industry has forecast a 400 percent growth in domestic tourism to around 640 million nights by 2019, for example.”
He said: “The number of pilgrims expected to visit the kingdom is set to more than double, and reach five million religious visitors this year, which presents a great opportunity for us to continue to expand our footprint in the country.”
Gauvin said: “We are in a great position to cater for this growth with the opening of Holiday Inn Makkah in 2016, which will be the largest Holiday Inn hotel in the world with 1,238 rooms.”
According to another new report published by Euromonitor International for The Hotel Show Saudi Arabia 2015, the Saudi travel market is currently booming owing to the launch of the “Umrah plus” visa which the government of Saudi Arabia introduced in 2014, that enables pilgrims to visit any city of the country freely after performing their religious duties.
Inbound tourism has historically been largely dependent on religious tourists traveling to Makkah and Madinah.
However, in recent years an ambitious plan to bring in more foreign investment has led to various industrial areas including the King Abdullah Economic City (KAEC), alongside large-scale expansion projects currently being carried out at the Holy Mosques, especially in Makkah.
Ismail AlAkamal, director at AlKamal International Saudi Arabia, will be speaking on Makkah and Madinah as a unique market for hospitality projects at the first ever Vision Conference at The Hotel Show Saudi Arabia 2015.
He said: “One can hardly recognize Makkah’s city center anymore with the sheer amount of demolition and construction work going on. From the Haram expansion, the First Ring Road, King AbdulAziz Boulevard, Haramain High Speed Rail and Makka Metro project to the private sector developments such as the Jabal Omar Development Project, Jabal Al Kabaa Project and many other independent developments around the central Haram area. It is no surprise that most of the private sector development is focused on hospitality with more than 22,000 keys forecasted to enter operation by the end of 2016. Of course, this opens numerous opportunities for all verticals catering for this unique market and at the same time presents a few challenges.”
Grant Salter, head of Travel, Hospitality and Leisure Advisory at Deloitte, will also be speaking on hotel performance by sector and opportunities for investment at The Vision Conference, Saudi Arabia 20


Africa development bank says risks to continent’s growth ‘increasing by the day’

Updated 18 August 2019

Africa development bank says risks to continent’s growth ‘increasing by the day’

  • The trade dispute between US and China has roiled global markets and unnerved investors
  • African nations need to boost trade with each other to cushion the impact of external shocks

DAR ES SALAAM: The US-China trade war and uncertainty over Brexit pose risks to Africa’s economic prospects that are “increasing by the day,” the head of the African Development Bank (AfDB) told Reuters.
The trade dispute between the world’s two largest economies has roiled global markets and unnerved investors as it stretches into its second year with no end in sight.
Britain, meanwhile, appears to be on course to leave the European Union on Oct. 31 without a transition deal, which economists fear could severely disrupt trade flows.
Akinwumi Adesina, president of the AfDB, said the bank could review its economic growth projection for Africa — of 4 percent in 2019 and 4.1 percent in 2020 — if global external shocks accelerate.
“We normally revise this depending on global external shocks that could slowdown global growth and these issues are increasing by the day,” Adesina told Reuters late on Saturday on the sidelines of the Southern African Development Community meeting in Tanzania’s commercial capital Dar es Salaam.
“You have Brexit, you also have the recent challenges between Pakistan and India that have flared off there, plus you have the trade war between the United States and China. All these things can combine to slow global growth, with implications for African countries.”
The bank chief said African nations need to boost trade with each other and add value to agricultural produce to cushion the impact of external shocks.
“I think the trade war has significantly impacted economic growth prospects in China and therefore import demand from China has fallen significantly and so demand for products and raw materials from Africa will only fall even further,” he said.
“It will also have another effect with regard to China’s own outward-bound investments on the continent,” he added, saying these could also affect official development assistance.
Adesina said a continental free-trade zone launched last month, the African Continental Free Trade Area, could help speed up economic growth and development, but African nations needed to remove non-tariff barriers to boost trade.
“The countries that have always been facing lower volatilities have always been the ones that do a lot more in terms of regional trade and do not rely on exports of raw materials,” Adesina said.
“The challenges cannot be solved unless all the barriers come down. Free mobility of labor, free mobility of capital and free mobility of people.”