The volume of hotel investments in Makkah is predicted to hit SR500 billion ($133 billion) by 2015 in light of the number of hotels and tower buildings currently under way in the central area of the holy city, accommodation dealers told local media.
The volume of hotel investments for 450 categorized hotels in Makkah stands at nearly $500 million per annum with the exception of other buildings and hotels, which have not yet received categorization certificates approved by the Saudi Commission for Tourism and Antiquities (SCTA), head of Hotels Committee at Makkah Chamber of Commerce and Industry (MCCI) Walid Abu Sabaa was quoted by Asharq Al-Awsat newspaper.
He stated that Makkah is considered the best destination for hotel investments globally due to its strategic position, as millions of people come to the city for the performance of Umrah and Haj rituals.
Ali Tashqandi, a hotel manager, said: "If we try to draw a picture of the culture of hotels, we have to think of the 10-year plans undertaken by the Saudi government for the development of the holy city. Facts remain indicative for a prosperous future for hotels that will lure global companies to enter the Saudi market."
Challenges in the field of hotels in Makkah impose several scenarios, the most important one being to achieve an integrated outlook that will assimilate all global hotel capacities. Many countries with broad-based hotel experiences have stressed that customer satisfaction should constitute major strategies and assumptions upon which a hotel project is based, he said.
Saad Al-Judi, another hotel expert, says the central area of the Grand Mosque in Makkah has been a target by businessmen and investors concerned with real estate development which, in turn, will lead to a boom in hotel construction. The influx of more than 2.5 million Haj pilgrims to Makkah every year will call the appetite of investors to provide world-class chains of hotels.
He estimated the volume of real estate investments in Makkah and Madinah to reach $120 billion in the next 10 years. Some experts maintain that one square meter of land in areas adjacent to the Grand Mosque could reach up to $100,000, which will make it the most expensive in the world.
Earlier, SCTA announced that the volume of hotel investments surrounding the Grand Mosque has exceeded SR18 billion ($4.8 billion). Hotel projects currently under construction in Makkah include more than 100 towers that will add over 24,480 rooms. the SCTA report said.
Hotel investments in Makkah to reach SR500bn by 2015
