The performance of Saudi Arabia hotels in the first quarter of this year are at similar levels to those in 2019, before the pandemic hit, according to new data from Colliers.
The Riyadh Seasons entertainment festival welcomed more than 15 million visitors over the five-month event which ended in March. Hotel occupancy was up more than 100 percent in Q1 of 2022 compared to the same quarter of 2019.
Easing on restrictions on pilgrims have also helped boost travellers. “The easing of government restrictions on the number of Hajj and Umrah pilgrims leading up to the holy month of Ramadan has significantly aided in hotel performance recovery from the previous two years,” stated the Colliers report.
The upcoming Jeddah Seasons is expected to have similar benefits as the Riyadh Season over Q2 and Q3 of this year. “Additionally, the increase in demand in holy cities during Ramadan in Q2 2022 will be a critical benchmark comparison for holy cities current performance vs pre-pandemic figures,” Colliers wrote.
As demand has recovered, there has also been year-on-year increases in the supply of rooms. Riyadh has seen a 10.2% increase, Jeddah 10.4% and Al Khobar 3.5%.
Saudi Arabia could see another city, Taif, come more onto the radar as a tourist destination. Its Tourism Development Fund (TDF) has announced a partnership for $80 million (AED 294 million) for a mixed use development that aims to grow Taif’s tourism sector. Named Taif Front, the project in the heart of the city aims to enhance its potential as a summer destination.
Egypt also saw an increase in hospitality during the last quarter due to the easing of travel restrictions. Leisure destinations such as Hurghada and Sharm El Sheikh saw strong occupancy figures, while Cairo’s year-on-year occupancy rate was up 106 percent driven by corporate and leisure visitors.
“The strengthening of political ties between Egypt and some of its key source markets such as Europe and the Middle East further supported the recovery of this market,” Colliers added.
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