Market Snapshot
| Study Period: | 2016 - 2026 |
| Base Year: | 2020 |
| CAGR: | 3.4 % |
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Market Overview
Though the increasing religious travel to the country is encouraging investments, the hospitality industry in Saudi Arabia is recording dynamic key performance indicators from the past five years. The kingdom is focusing on improving investment opportunities through the introduction of several projects. Qiddiya, The Red Sea Development, Amaala, NEOM, Al Ula, Wadi Al Disah Development are the major projects launched by the Public Investment Fund of Saudi Arabia in 2018 and are aiming at fulfilling the target Vision 2030. The increasing religious and leisure travel to the Kingdom has opened investment opportunities in the hospitality industry and resulted in an increasing number of new hotels opening in the key cities. The top-performing international brands opened more than 20 new hotels a few directly with their brand name and a few through strategic partnerships with the leading domestic hospitality groups and added more than 8,200 rooms/keys to the existing supply covering all segments of the market. Jeddah recorded the highest average daily revenue value among the top competitive markets across the globe with USD 284. Makkah, Riyadh and Dammam/ Al Khobar are also among the top 10 locations that recorded the highest average daily revenue across the world with USD 176, USD 170 and USD 132 respectively during 2018 making the region an attractive market for investors.
Scope of the Report
A complete background analysis of the hospitality industry in Saudi Arabia, which includes an assessment of the industry associations, overall economy, and emerging market trends by segments, significant changes in the market dynamics, and market overview is covered in the report.
| By Type | |
| Chain Hotels | |
| Independent Hotels |
| By Segment | |
| Service Apartments | |
| Budget and Economy Hotels | |
| Mid and Upper mid scale Hotels | |
| Luxury Hotels |
Key Market Trends
International Visitors to Saudi Arabia are Expected to Rise After the Kingdom’s New Visa Regime 2019
In September 2019, Saudi Arabia announced its new visa regime in which it announced that it is going to provide e-visas and visas on arrival to visitors from 49 countries. Till September 2019, the travel to Saudi Arabia was entirely restricted to expatriate workers and people with business visas, and to the religious pilgrims, who are visiting the holy cities of Saudi Arabia - Mecca and Medina. The kingdom has relaxed the entry with a view to attracting more visitors to achieve its target of welcoming 100 million visitors by 2030.
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The High International Overnight Visitor Spending Records are Attracting Investments
Despite the dynamic yet challenging market conditions, Saudi Arabia remained one of the most competitive markets for the hospitality industry in the world. As per STR, in 2019, Jeddah reported the highest average daily revenue globally. Mastercard Global Destination Cities Index revealed that Makkah achieved the second-highest spend per visitor globally during the same year. These indicate that the overall long-term outlook for the hospitality industry in Saudi Arabia has great potential for diversification efforts with the ongoing government-led investments in infrastructure and several social reforms in the entertainment and the tourism sector.
Competitive Landscape
The hospitality industry in Saudi Arabia is a combination of several international brands and chain hotels and several domestically grown chain hotels. Many well-established international brands entered several strategic partnership programs with the leading hospitality companies that have the Middle East origination and are operating through their brand name under the management contracts of reputed organizations. The market holds great growth opportunities and is welcoming many new investors into the industry.
Table of Contents
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1. INTRODUCTION
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1.1 Study Deliverables
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1.2 Scope of the Study
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2. RESEARCH METHODOLOGY
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3. EXECUTIVE SUMMARY
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4. MARKET INSIGHTS AND DYNAMICS
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4.1 Market Overview
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4.2 Market Dynamics
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4.2.1 Drivers
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4.2.2 Restraints
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4.2.3 Opportunities
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4.3 Impact of COVID-19 on Hospitality Industry
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4.4 Insights on Revenue Flows from Accommodation and Food and Beverage Sectors
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4.5 Leading Cities in Saudi Arabia with Respect to Number of Visitors
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4.6 Investments (Real Estate, FDI and others) in the Hospitality Industry
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4.7 Technological Innovations in the Hospitality Industry
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4.8 Insights on Shared Living Spaces Impact on the Hospitality Industry
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4.9 Insights on Other Economic Contributors to the Hospitality Industry
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4.10 Value Chain Analysis
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4.11 Porter's Five Forces Analysis
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5. MARKET SEGMENTATION
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5.1 By Type
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5.1.1 Chain Hotels
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5.1.2 Independent Hotels
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5.2 By Segment
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5.2.1 Service Apartments
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5.2.2 Budget and Economy Hotels
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5.2.3 Mid and Upper mid scale Hotels
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5.2.4 Luxury Hotels
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6. COMPETITVE INTELLIGENCE
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6.1 Market Concentration
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6.2 Company profiles
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6.2.1 Al Hokair Group
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6.2.2 Dur Hospitality Company
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6.2.3 Al Tyaar Group
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6.2.4 Accor SA
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6.2.5 InterContinental Hotels Group
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6.2.6 Marriott International Inc
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6.2.7 Hilton Hotels & Resorts
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6.2.8 Millennium Hotels and Resorts
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6.2.9 Cristal Group*
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6.3 Loyalty programs offered by Major Hotel Brands
*List Not Exhaustive -
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7. INVESTMENT ANALYSIS
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8. FUTURE OUTLOOK OF THE SECTOR
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9. APPENDIX
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Frequently Asked Questions
What is the study period of this market?
The Hospitality Industry in the Kingdom of Saudi Arabia market is studied from 2016 - 2026.
What is the growth rate of Hospitality Industry in the Kingdom of Saudi Arabia?
The Hospitality Industry in the Kingdom of Saudi Arabia is growing at a CAGR of 3.4% over the next 5 years.
Who are the key players in Hospitality Industry in the Kingdom of Saudi Arabia?
Al Hokair Group, Dur Hospitality Company, Al Tayer Group, InterContinental Hotels Group , Marriott International Inc are the major companies operating in Hospitality Industry in the Kingdom of Saudi Arabia.
