The Saudi tourism and hospitality is poised to see an investment of SR 33.5 billion being pumped in by 2020.

Local media quoting experts in the field said investments in tourism and travel sector in the Kingdom have grown at an annual compounded average growth rate (CAGR) of 5 percent since 2001, the media, quoting data released by the World Travel and Tourism Council (WTTC), said.

According to the WTTC data, investments in the sector had reached SR20.55 billion by the end of 2012.

Experts, who were preparing for the forthcoming Arab hospitality investment gathering in Dubai (May 4-5), said the tourism sector in the Kingdom was expected to grow by 6.7 percent.

Filippo Sona, head of hotels, MENA Region at Colliers International, forecast that there would be positive changes in the hospitality sector in the Kingdom, notably the growth of serviced (hotel) apartments for businessmen in a manner that could achieve maximum revenues.

However, a tremendous gap exists between Saudi local and global hotel apartments in terms of services and facilities, the expert said.

Certain parts in the Kingdom have big hospitality potentials though Makkah and Madinah have limited capacities. The current year will witness the establishment of a series of global-scale hotel apartments such as Frazer Palace and Frazer Swatch in Riyadh and other projects in Jeddah and Jazan, he said.

The experts, who met at Marriot International in Jeddah, said the investments reflected the government’s continued commitment to foster tourism in the Kingdom which is expected to increase its share to 6.1 percent by 2017.

Head of MENA Region at STR Global, Philip Wooller, said the number of hotel rooms coming up in the Middle East and Africa stands at 66,438 with Dubai alone accounting for 10,970 rooms, followed by Makkah at 6,927, Riyadh (5,804), Doha (4,944), Abu Dhabi (3.036), and Jeddah (2,569).