· GCC residents to push demand for short leisure breaks in
Riyadh & Jeddah
· 21.3 million visitors expected by 2024 - ME&A top source
market
·
ATM
witnesses 45% growth in Saudi exhibitors between 2018 and 2019
Visitors
to Saudi Arabia are predicted to increase 38% from 15.5 million in 2019 to 21.3
million by 2024, according to new research by Colliers
International, commissioned by Arabian Travel Market (2020), which takes place at Dubai World Trade Centre from 19—22 April 2020.
This
increased demand will be driven by an increasing number of GCC residents wishing
to visit the kingdom on short city or mini breaks. It will also be bolstered by
business travellers extending work trips to explore the Kingdom's expanding
tourism offerings or attend one of the many sporting or cultural events.
Underpinning
this trend, the data from Colliers revealed that over 21.3 million visitors were
estimated to visit the country by 2024.
Danielle
Curtis, Exhibition
Director ME, Arabian Travel Market, said: “As Saudi Arabia
continues to reduce its reliance on oil, increasing tourism arrivals is becoming
instrumental in the country’s economic diversification, and at ATM, we are
witnessing this growth firsthand, with the total number of exhibitors from the
Kingdom increasing 45% year-on-year between 2018 and 2019.
“With
an ambition to increase inbound tourism to 100 million by 2030, Saudi Arabia no
longer wants to be viewed as solely a religious destination for the world’s
Muslim community, or a corporate destination as one of the richest countries in
the world. It has an incredible landscape, with diverse regions and an array of
tourism offerings for leisure travellers.”
In
line with growing tourism numbers, the global hotel industry has gained a
renewed interest in Saudi Arabia with a number of international and regional
brands looking to expand their presence across the Kingdom.
According
to the latest data from STR,
79,864 hotel rooms are expected to be added to the Kingdom's existing inventory
by 2025, with the majority of rooms (34,270) in Makkah, followed by Jeddah and
Riyadh with 14,525 and 11,632 new rooms, respectively.
Hotels
in Riyadh witnessed a strong year in 2019, with RevPAR growing 5.2% following a
9.2% increase in occupancy and -3.6% decline in ADR. In Q4, Riyadh's RevPAR
reached 529.33 SAR - the highest it has been since 2014.
“While, this new
supply may place additional competitive pressure on hotels’ performance across
the country, the projected growth in visitor numbers over the next four years
is expected to continue to boost occupancy levels throughout 2020 and well beyond,”
said Curtis.
Following
the introduction of the new tourist visa, which allows visitors from 49
countries to apply for an e-visa or receive a visa on arrival – the Kingdom has
developed a two-phase tourism strategy in line with Vision 2030.
Phase
one – 2019-2022 – will focus on attracting first-time visitors to discover
Saudi Arabia, in particular, its pristine beaches, deserts, mountains and
heritage sites such as Dir’iyah as well as its packed calendar of sporting and
cultural events. While, phase two – 2022-onwards – will focus on the full
development of giga projects such as NEOM and the Red Sea Project.
Turning
to outbound tourism, Saudi Arabia’s outbound tourism market is expected to
reach over US$ 43 billion by 2025, according to the latest data from Renub
Research. While family holidays currently dominate the market, a rising
generation Z population, who are heavily influenced by the image of a
destination – whether it be gastronomy, adventure, culture or overall unique
experiences, are expected to change this trend.
Looking ahead to ATM 2020, Saudi
exhibitors who will highlight what the Kingdom has to offer and the exciting
developments in the pipeline, include Saudi Commission for Tourism and National
Heritage, SAUDIA and flynas, among others, with NEOM making its debut. The
Saudi pavilion will occupy almost 2,300sqm of stand space this year, an
increase of 20% compared to last year.
Curtis added: “As GCC travel and tourism
companies and destinations look to attract a larger share of the KSA market,
ATM 2020 will introduce the Saudi Arabia Tourism Summit as part of the
show’s new forum & networking series. The session will outline what
destinations are doing to attract visitors from this key market while also
providing an informal networking event for buyers from Saudi Arabia and
exhibitors.”
ATM, considered by industry
professionals as a barometer for the Middle East and North Africa tourism
sector, welcomed almost 40,000 people to its 2019 event with representation
from 150 countries. With over 100 exhibitors making their debut, ATM 2019
showcased the largest ever exhibition from Asia.
Adopting Events for Tourism Growth as the
official show theme, ATM 2020 will build on the success of this year’s edition
with a host of seminar sessions discussing the impact events have on tourism
growth in the region while inspiring the travel and hospitality industry about
the next generation of events.
Tags: Arabian Travel Market
