Saudi Arabia‘s cities of Abha and Taif have been named as the “favourite domestic holiday destinations” for nationals, according to a report by global property consultant Knight Frank.
Saudi nationals travel frequently within their own country, but some of them are being discouraged from traveling due to the high costs involved. This poses a “significant hurdle” to the Kingdom’s tourism strategy, as it will be difficult to attract international tourists if even the local population is finding the costs too high, the report said.
“For domestic tourism to flourish in the Saudi Arabia, care and attention must be paid to the development of attractions in secondary and tertiary cities if they are to compete and thrive alongside all the new giga project hospitality offerings. Furthermore, with 28 percent of Gen Z Saudi’s highlighting high costs (as a barrier to domestic travel, there remains an opportunity to develop more cost-effective accommodation options,” Knight Frank’s head of Middle East Research Faisal Durrani explained.
Boosting domestic tourism in Saudi Arabia
Saudi Arabia is increasing its hospitality offerings across the kingdom, which is expected to boost domestic tourism. This will form a “key part of the future of the Kingdom’s hospitality landscape,” according to a forecast by Knight Frank.
“Think luxury glamping sites, youth hostels, 3* hotels, which will form just 17 percent of total hotel room supply by 2030, noting of course cultural sensitivities and adaptations that may be required,” Durrani said.
About 100 million visitors are expected to pass through the kingdom’s gateways by 2030, with real estate projects being linked to hospitality, tourism and entertainment sectors, which is “unsurprisingly soaring,” according to Knight Frank.
The property consultant is also currently tracking in excess of 310,000 hotel rooms, which will be built at over $110 billion, and slotted for completion by 2030.
“When it comes to the most popular brand of hotels, as is the case with schools and hospitals, internationally branded and operated hotels are preferred (56 percent) over local brands (44 percent) by Saudis and the choice appears to be linked directly to price (33 percent), followed by location (31 percent),” Turab Saleem, Partner – Head of Tourism and Hospitality Advisory said.
Saleem explained that the construction of numerous hotels in the Kingdom is expected to create many opportunities for related industries.
As a result of the influx of visitors, several industries will have to adapt to meet the increased demand. The development of the physical infrastructure will be necessary, but there will also be a need for the establishment of new national airlines.
He added that some changes, such as the King Salaman International Airport and the new RIA airline, are already underway.
The most critical aspect of this development is the creation of regulations that will govern all aspects of the growing tourism industry, including labor and investment, Knight Frank emphasised, adding that streamlined processes will be required to facilitate hospitality investments.
The flagship 2023 Saudi Report surveyed 498 Saudi-national households, and was carried out in partnership with YouGov.
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