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) in May.
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.
Madinah and Makkah witnessed RevPAR rates of just 33 percent and 24 percent, respectively in 2021.
Although significantly lower than pre-pandemic levels, Saudi Arabia’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.
In terms of outbound travel, research conducted by Colliers International shows that overseas journeys from the kingdom are set to grow to 6,075,000 in 2022, compared to an estimated 3,793,000 in 2021 and 4,839,000 in 2020.
In the longer term, outbound tourist trips are expected to rise to 9,262,000 in 2025, although this figure would still be significantly lower than the peak of 19,751,000 recorded in 2019.
Outbound tourist expenditure is set to grow to SR32.656 billion ($8.7 billion) this year, compared to an estimated SR19.734 billion in 2021 and SR21.969 billion in 2020. Total expenditure is expected to increase to SR54.624 billion in 2025.
ATM 2022 will welcome a range of exhibitors from the kingdom, including the Saudi Tourism Authority, which has expanded its exhibition area by 40 percent compared to 2021, as well as Saudia Airlines, Flynas, Seera, Red Sea Project, Neom, Dur Hospitality and Al Hokair Group.
“While religious tourism will no doubt remain a mainstay for Saudi Arabia, the global travel community is also understandably excited about new prospects that are opening up thanks to the country’s growing investment in other segments,” added Curtis.
Now in its 29th year, this year’s edition of ATM will commence on Monday May 9.
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