JEDDAH, 2 August 2004 — A massive influx of tourists into Jeddah this summer has caused heavy price competition between hotels and furnished apartments both of which report 100 percent occupancy at weekends.
Hotels and furnished apartments offered special promotions to attract visitors to Jeddah with the result that even on weekdays occupancy rate was as high as 80 percent, according to Al-Watan newspaper.
As schools close for summer, many citizens and expatriate residents from all over the country flock to the city to spend the holidays.
Ateeq Al-Harbi, from Qasim, stays at one of Jeddah’s well-known hotels.
“I decided to come to this hotel after our company received a special promotion offer for its employees. I noticed something new this year: Prices are going back to normal unlike in previous years when prices hit the roof in the summer,” he said.
“Now that the prices of furnished apartments and hotels are down, hopefully the prices of amusement centers and seaside cabins will also go down. At the moment they are very expensive. My friend rented a beach cabin for SR500 a day. He left before he finished the day because it was very dirty. Elegant beach cabins cost between SR1,500 and SR2,000 a day, which is very high for middle-income people,” Al-Harbi told Al-Watan.
Muhammad Ali is a frequent visitor to Jeddah. He spends his vacation with his family and children.
He was satisfied to see the price competition between hotels because it ultimately benefits the visitors. He expressed hope that the same price war would cover entertainment facilities.
He said, “I cannot visit amusement parks in Jeddah because the prices are very high. These prices should be reduced. Rents of furnished apartments are normal, SR250 a day. But for a parent with five children, the rates of entertainment centers are very high and I cannot afford it. The main problem is not finding a place to stay but finding a place for the children to visit.”
Ali Hakami said: “I have been spending my vacation in Jeddah for the past 15 years. I noticed some positive changes this year, which are the price cuts and quality of services provided. I think the furnished apartment sector will win the price war against hotels because hotels still have slightly high prices.”
