Kingdom’s tourism and hospitality sector to draw huge investments

Kingdom’s tourism and hospitality sector to draw huge investments
Updated 06 October 2014

Kingdom’s tourism and hospitality sector to draw huge investments

Kingdom’s tourism and hospitality sector to draw huge investments

Forecasts indicate the possibility of a dramatic growth in investments worth over SR95 billion in the Saudi tourism sector, hotels and apartments during the next 10 years.
While Saudi nationals spend billions abroad during holidays, incoming foreign tourists, including pilgrims, contribute heavily to the growth of commercial business in the Kingdom.
Amid continuous improvement in the hospitality and related sectors in Saudi Arabia that also excelled in providing first class services to its guests in term of health services, security and some other relevant hospitality services the travel industry look very promising, according to a an economist.
He said that the volume of investments in the Saudi Tourism and Travel Market (STTM) during the current year stood at SR150 billion, of which SR50 billion will be generated from domestic tourism, and SR100 billion from inbound tourism including pilgrims.
Domestic tourism alone has seen remarkable growth recently, where volume of spending has surged from SR59 billion in 2010 to SR103 billion in 2014.
The sector plays the role of a catalyst for economic growth and is one of the most prominent sustainable investment opportunities.
Haj and Umrah are also two of the most important sources of revenue for the Kingdom’s economy.
The number of pilgrims since the start of umrah season this year until Ramadan has already reached seven million.
This rapid growth came as a result of world-class infrastructure, which has created the largest investment opportunities for growth in the services sector for pilgrims and business visitors.
The same source says that by the year 2025 the number of pilgrims is expected to reach 5.2 million while in 2013 it had already touched two million.
This increase depends on the growing infrastructure works of Jeddah airport, which is expected to reach 80 million people by 2035.
The ongoing expansion of the Grand Mosque toward the north-west and north-east will increase its capacity to 2.5 million people, while the expansion of the Prophet's Mosque in Al-Madinah will boost its capacity from 600,000 to 1.6 million people upon completion in 2040.