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The development of mega tourism projects in Saudi Arabia and the recent easing of tourist visa regulations are expected to drive up tourist arrivals to the Kingdom, thus providing support to its hospitality market, London-headquartered property consultancy Knight Frank noted in a recent report.
The Public Investment Fund (PIF) launched several major tourism and hospitality projects including NEOM, The Red Sea Project, Amaala, Al Ula, Wadi Al Disah Development and Qiddiya, the report said, adding that continued progress of such mega developments is a positive signal for the Kingdom’s ability to attract new demand.
Saudi Arabia began offering tourist visas in September 2019 to citizens of 49 countries. Additionally, the Kingdom’s recent initiative to allow the US, UK or Schengen visa holders to obtain a tourist visa on arrival in the Kingdom will help boost the tourism sector and diversify the country’s economy.
As per Saudi Vision 2030, the government is aiming to attract 30 million visitors by 2030, which represents a 58% growth from 2019.
The recent completion of key projects such as King Abdulaziz International Airport and Al Haramain High Speed Rail signals that the infrastructure is in place to support such visitations.
The supply of quality hotel rooms is expected to increase by 29%, 55%, and 47% in Riyadh, Jeddah and Dammam, respectively, considering under construction projects and those due for completion by the end of 2022.
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