Saudi Arabia's hospitality sector to grow by 13.5% annually to 2022
The compound annual growth rate (CAGR) is predicted to be higher than UAE and Oman, a report issued ahead of Arabian Travel Market 2018 said
In a report issued ahead of the Arabian Travel Market 2018 (ATM), Saudi Arabia is slated to see about 13.5% compound annual growth rate (CAGR) by 2022.
The finding follows the stage Saudi Arabia set for leisure tourism expansion last year, in line with its targets to welcome 30 million visitors annually by 2030.
A study by Colliers International stated that religious tourism in Saudi Arabia is driving demond with 30,000 rooms opened in 2017, with additional 40,020 guestrooms in 89 projects currently under construction.
To cater to its 2030 vision, the first tourism visas will be issued to travellers in 2018 and for the first time, women aged 25 and above, will be issued a 30-day single-entry tourist visa without a male chaperone.
Commenting on the report, ATM senior exhibition director Simon Press said: “Following recent reforms and the relaxation of visa regulations, Saudi Arabia is poised to capitalise on these factors as it nurtures a vibrant leisure and entertainment sector, supported by a new generation of hotels.”
Besides a steep increase in airport passengers, Saudi Arabia is expected to expand its hotel and resort inventory, the report said.
Saudi Arabia has announced a series of leisure projects including Six Flags theme park in Riyadh by 2021 and a Red Sea resort which is backed by investment from Virgin Group founder Sir Richard Branson.