More than 30,000 hotel rooms under development in Saudi Arabia
A total of 32,621 hotel rooms are currently under construction in Saudi Arabia, as the kingdom prepares to meet pent-up demand from pilgrims returning to its holy cities. That’s according to the latest research from STR, commissioned by Arabian Travel Market (ATM) 2022, which will take place at Dubai World Trade Centre (DWTC) from Monday 9 to Thursday 12 May.
The analysts found that the country’s revenue per available room (RevPAR) recovery index stands at 52 percent, noting that the absence of millions of Muslim pilgrims has significantly impacted hotel performance in Saudi Arabia. Medina and Makkah witnessed RevPAR rates of just 33 percent and 24 percent, respectively, in 2021.
Although significantly lower than pre-pandemic levels, KSA’s hotel performance registered year-on-year gains in 2021 and the sector’s recovery is expected to persist throughout the coming year, with pent-up demand driving further improvements as Covid-related restrictions continue to ease.
Danielle Curtis, Exhibition Director ME – Arabian Travel Market, said: “As was the case for markets the world over, the global pandemic had a major impact on Saudi Arabia’s hospitality sector. Even so, STR’s findings clearly point to an ongoing and sustained recovery, and we are looking forward to exploring the vast untapped potential of the kingdom’s burgeoning tourism sector at ATM 2022.”
Hotels in Al Khobar are currently outperforming those in Saudi Arabia’s other major cities, with RevPAR surpassing pre-pandemic levels in 2021. Riyadh, Dammam and Jeddah, meanwhile, recorded recovery index rates of 88 percent, 85 percent and 56 percent, respectively, last year.
With two sessions dedicated exclusively to the kingdom, attendees, exhibitors and delegates will have ample opportunity to take a deep dive into Saudi Arabia’s tourism, travel and hospitality industry at ATM 2022.
The first, ‘From strategy to reality: Saudi Arabia’s tourism vision comes of age’, part of the ATM Saudi Forum, will focus on infrastructure progress, niche markets and fresh opportunities, as the country works to attract 100 million annual visitors by 2030. The second, ‘Saudi Arabia’s blueprint for responsible tourism development’, will explore how sustainability, community inclusion, education and training, and the legacy impact of KSA’s broad-ranging tourism vision can offer a best-practice model for other global destinations.
Now in its 29th year and working in collaboration with the Dubai World Trade Centre (DWTC) and Dubai’s Department of Economy and Tourism (DET) – formerly the Department of Tourism and Commerce Marketing (DTCM) – ATM show highlights in 2022 will include, among others, a destination summit focused on the key source market of India, as well as Saudi Arabia.