· New leisure and tourism
facilities forecast to fuel domestic tourism at 8% per year until 2023, says
new Arabian Travel Market report
·
33%
of delegates, exhibitors and visitors to Arabian Travel Market interested in
doing business with the Kingdom
Saudi Arabia’s travel
and tourism sector is expected to contribute $70.9 billion (SAR 263.1 billion)
in total to the country’s GDP in 2019, according to data from the World Travel
and Tourism Council, as exhibitors prepare to
showcase what the Kingdom has to offer at this year’s Arabian Travel Market (ATM),
which is being held at the Dubai World Trade Centre from 28 April – 1 May 2019.
According to data from ATM’s research partner Colliers,
international arrivals to Saudi Arabia are expected to increase 5.6% per year
from 17.7 million in 2018 to 23.3 million in 2023. Religious tourism is
expected to remain the bedrock of the sector over the next decade, with a goal
of attracting 30 million pilgrims to the Kingdom by 2030, an increase of 11
million from the 19 million Hajj and Umrah pilgrims that visited the country in
2017.
Danielle Curtis,
Exhibition Director ME, Arabian Travel Market, said: “At ATM, we are witnessing
this growth first hand with the total number of delegates arriving from Saudi
Arabia increasing 42% between 2017 and 2018, while 33% of delegates, exhibitors
and attendees were interested in doing business with the Kingdom.
“More relaxed access to visas, through online
portals such as the ‘Sharek’ and the growth of the Umrah plus market –
combining religious and leisure travel – are expected to be key drivers in the
growth of international tourism in the Kingdom.”
Vision 2030 has set aside $64 billion to invest
in culture, leisure and entertainment projects over the next decade, which will
significantly add to the attractiveness of the country as a touristic
destination, according to a recent report from real estate firm Savills.
The first phase of the Red Sea project, which
is estimated to grow the kingdom’s GDP by US$5.86 billion (SAR22 billion) and
will consist of an airport, marinas, up to 3,000 hotel rooms and various
recreational activities, is expected to complete during 2022.
Additionally, last year Saudi Arabia’s Public
Investment Fund announced the development of Amaala, a new ultra-luxury tourism
megaproject which is earmarked for completion in 2028. The development will add
2,500 hotel rooms – further boosting the accommodation offering for both
domestic and international visitors alike.
“Saudi Arabia will see a vast expansion of its
hotel and resort inventory during 2019, with over 9,000 keys of three, four and
five-star international supply expected to enter the market despite major
cities such as Riyadh and Jeddah experiencing an overall drop in ADR during
2018.
“While, this new supply will place additional
competitive pressure on hotels performance across the country, the projected
growth in visitor numbers in both the domestic and international markets is
expected to boost occupancy levels throughout 2019,” added Curtis.
Looking ahead to ATM 2019, Saudi exhibitors,
who will highlight what the Kingdom has to offer and the exciting developments in
the pipeline, include The Red Sea Development Company, Saudia – Saudi Arabian
Airlines, Makarem Hotels, AlfaOne Concierge – and of course the Saudi
Commission for Tourism and National Heritage who will have a major presence
too.
A focused seminar titled ‘Why
Tourism is Saudi’s new ‘White Oil’ will take place on the Global
Stage on Monday 29th April between 14.50 – 15:50. The session will discuss Saudi Arabia’s
tourism potential as the Kingdom undergoes a period of rapid economic
diversification and forges ahead with its Vision 2030 blueprint.
The upbeat tourism forecast is also being
driven, by domestic tourism with the number of local tourist trips inside Saudi
Arabia exceeding 47 million in 2018. The latest research from Colliers
forecasts this figure to increase 8% per year to 70.5 million by 2023.
“Plans are already afoot in Saudi, to achieve
the projected increase in domestic visitors, with the Kingdom’s Vision 2030
blueprint forecast to double the number of UNESCO heritage sites and increase
household spending on cultural and entertainment activities inside the country
from 2.9% to 6%.
“Meanwhile, the Quality of Life Vision
Realisation Programme (VRP) and the General Entertainment Authority are both
working to create new attractions and recreational activities within the
country,” added Curtis.
ATM, considered by industry professionals as a
barometer for the Middle East and North Africa tourism sector, welcomed over
39,000 people to its 2018 event, showcasing the largest exhibition in the
history of the show, with hotels comprising 20% of the floor area.
Brand new for this year’s show will be the
launch of Arabian Travel Week,
an umbrella brand comprising four co-located shows including ATM 2019, ILTM Arabia, CONNECT
Middle East, India & Africa – a new route development forum and
new consumer-led event ATM Holiday Shopper.
Arabian Travel Week will take place at Dubai World Trade Centre from 27 April –
1 May 2019.