ALKHOBAR, 8 March 2006 — With new projects coming up, the Eastern Province is making efforts to keep pace with other provinces in the Kingdom’s current economic boom.
The past year presented an opportunity to encourage multinational companies to do business in this province, as elsewhere in the Kingdom, with the launch of many mega projects. A sharp downturn was witnessed in previous years due to the security situation then, according to local industry leaders.
A key challenge facing the private sector has been the increasing pressure on it to employ Saudi nationals as part of the intensified Saudization drive. The percentage of total Saudi employees must increase by five percent each year.
Also, against the background of the buoyant economy resulting from increased oil revenues, investment in various sectors in the province is also keeping pace with the rest of the Kingdom.
In a significant move, the National Commercial Bank (NCB) has signed an agreement with the Eastern Province Chamber of Commerce & Industry (EPCCI) to sponsor a training program entitled “How to Start Your Small Business.”
The head of NCB’s Community Service Unit, Mahmoud M. Al-Turkistani, signed the agreement with EPCCI Secretary-General Abdul Aziz Al-Ayaf. They also signed another deal to support a program entitled “How to Start Your Own Home-Based Business” for women in the region.
Al-Turkistani said the EPCCI’s role and keenness to develop small- and medium-sized business has helped create a suitable environment leading to the collaboration between the EPCCI and the NCB.
Some of the recent moves in the province include the unveiling of the multimillion-riyal City Fanar project in Alkhobar, a “future city” waterfront destination being built around a 300,000 square-meter manmade lagoon. Located on the Alkhobar-Dammam Corniche, the 3.3 million square-meter city will feature a multipurpose environment offering residential, commercial and leisure facilities, including a blend of entertainment, dining, shopping, marinas and hotels.
The Supreme Commission of Tourism’s efforts are paying off and the leisure market has been very buoyant. Food and beverages have enjoyed good growth and the conference and banqueting market has also been strong.
“We’ve seen a steady increase in commercial and indeed leisure traffic in all segments,” Yahya Kotub, deputy general manager at Le Gulf Meridien Alkhobar, told Arab News in an interview.
Although leisure tourism is unlikely to experience significant growth in the near future, some growth is anticipated in domestic leisure demand in some places including Alkhobar and Dammam. “We anticipate a recovery in the level of demand for hotel accommodation in the province,” he said.
“The hospitality industry in the Eastern Province, which continues to expand, will add some more five-star hotels in the coming two years,” he said. Alkhobar currently has two major five-star properties.
Among the hotels under construction are Movenpick, Park Inn and two Sofitel properties in Alkhobar. A five-star hotel is also being planned in Dammam in 2007. These together are expected to provide about 900 rooms. All these moves are in keeping with the Supreme Council of Tourism’s continuing efforts to attract domestic tourism.
The leisure segment increased by six percent in 2005 compared to the previous years. Summer occupancies were the best in over 10 years and five-star hotels in the province achieved 70-percent occupancy. The future in this segment looks bright as the commission implements its 20-year strategic plan.
The year also witnessed the launching of training programs for young Saudis with the cooperation of the EPCCI. “The program initiated by Le Gulf Meridien Alkhobar is a modular education system that targets specific job needs for young Saudi nationals entering the job market,” Kotub said.
“We also launched our ‘business process’ training program, which is a companywide initiative focusing on consistent quality and service delivery,” he added.
The economy is booming and the many projects mobilizing now will yield many overseas visitors to this part of the Kingdom as well. “The leisure segment will also grow as more facilities are brought online, encouraging nationals to holiday in the Kingdom rather than venturing overseas,” said Mohamed H. Osman, the hotel’s director of sales and marketing.
With the economic boom continuing and new projects on the anvil, the next five years will bring about positive changes in the Eastern Province’s industrial scene in general and the hospitality industry in particular, said Prashant Sharma, the hotel’s assistant director of sales and marketing.
