Research Analysts at Ken Research in their latest publication “Potential Investment Opportunities in the Riyadh Luxurious Resorts” believe that introducing facilities such as outdoor cinemas, mobile applications for guests’ guide to book services, provide feedback and seek virtual tour, complimentary luxury car service within resort to explore, private recording studio, mini golf course in resorts, horse riding, water park, kid’s clubs and revitalizing resort entertainment will contribute to a rise in tourist influx within luxurious resorts within Riyadh.
- In the near future, Saudi Arabia’s travel and tourism’s contribution to GDP is further anticipated to grow at a healthy average ranging between 6-7% per year over the next decade.
- The supply composition of hospitality market within Riyadh city will be highly imbalanced in terms of five star and four star hotel supply as the city is expected to see rising number of mid-market hotel brands.
- High outflow of foreign expats could create a negative impact on the country’s overall hospitality and tourism industry, especially over Riyadh in the near future as the capital city has majority of the hotel population.
Riyadh hospitality market has been undergoing a transition with austerity measures in KSA, plunge in crude oil prices and rise in Iqama fees and introduction of dependent fees due to Saudization.
Riyadh hospitality market is expected to showcase high growth on account of massive increase of mid-market hotel brands. Whereas on the other hand, five star and four star hotels along with luxurious resorts are anticipated to display slow growth in the near future owing to higher penetration of consumers that prefer mid-range hotels over premium class resorts. Continued new supply of hotel/resort rooms and the market’s heavy reliance on business travel associates will also contribute to the KSA hospitality industry market performance in the near future.
Major upcoming developments such as KAFD (King Abdullah Financial District) and Entertainment City are also predicted to bring in multiple tourists attractions in the near future. In addition to that, economic diversification away from the oil and gas sector under KSA Vision 2030 is further expected to result in growth of all economic sectors, which could aid in generating more hotel demand over the long term.
Riyadh was also observed with beautiful wedding venues that seem to be a perfect fit for royal and destination weddings. Some of these popular resorts and hotels include Al Faisaliah Hotel, The Ritz-Carlton Riyadh, Nayyara Banqueting and Conferences Centre, The Four Seasons Hotel Riyadh and others. Amenities provided within major wedding venues include lavish ballrooms, bridal suites, personalized wedding planner, decorator and catering services, proper guest accommodation and others which make a resort ideal/appropriate for marriage and other big events / parties.
Implementation of Saudization policy will limit the potential of foreign firms to expand as well as invest within Saudi Arabia because it has been mandatory to apply the Saudization system before expansion. As a result, it could restrict the influx of big international hotel brands, thereby creating a negative impact on the country’s hospitality and tourism industry.
Key Segments Covered:
By Type of Rented Units
- First Class
- Second Class
- Third Class
- Four Class
By Type of Hotels
- One Star
- Two Star
- Three Star
- Four Star
- Five Star
Key Target Audience
- 5 star and 4 star hoteliers
- Investors in Hospitality Sector
- Hospitality Industry Associations
- Government/Regulatory Authorities
- Ministry of Tourism
Time Period Captured in the Report:
- Historical Period: 2012-2017
- Muharram (22 Sep – 21 Oct 2017)
- Safar (22 Oct – 21 Nov 2017)
- Rabi’ I (22 Nov – 21 Dec 2017)
- Rabi’ II (22 Dec 2017 – 21 Jan 2018)
- Jumada’ I (22 Jan – 21 Feb 2018)
- Jumada’ II (22 Feb – 21 Mar 2018)
- Rajab (22 Mar – 21 Apr 2018)
- Sha’ban (22 Apr – 21 May 2018)
- Ramadan (22 May – 21 June 2018)
- Shawwal (22 Jun – 21 July 2018)
- Dhul-Qadah (22 Jul – 21 August 2018)
- Dhul-Hijjah (22 Aug – 21 Sep 2018)
- Future Forecast: 2023
Case Studies Covered:
- Vivienda Resort (Granada Branch)
- NOFA Resort (Radisson Collection)
- Al Faisaliah Resort and Spa
- Rest Resort
- Davli Resort
- Braira Resort (Hitin Branch)
Key Topics Covered in the Report
- Executive Summary
- Research Methodology
- Riyadh Hospitality Market Overview
- Factors Influencing the Hospitality Market in Riyadh Region
- Current and Future Demand and Supply, 2018 and 2023
- Market Insight and Performance
- Average Daily/Monthly/Annual Rental Rates of Luxurious Resorts in Riyadh
- Average Daily Occupancy Rates of Resorts in Riyadh
- Riyadh Hospitality Market Future Outlook, Opportunities and Development Trends
- Key Expected Upcoming Luxury Resort Projects in Riyadh
- Does the Landscape of Hospitality in Saudi Arabia is forecasted to be Positive and encouraging to invest in this Sector?
- Recommendations Regarding Success Factors of Developing Luxurious Resorts
- Key Features and Characteristics of Luxurious Resorts in Saudi Arabia
- Recommended Branded Operators for Luxurious Resorts
- Targeted Customers of Luxurious Resorts
- Potential Demand on Long-term Lease and Annual Subscription Resorts in Riyadh
- Recommendation for Type of Facilities to be Developed within Luxurious Resorts
- Competitive Analysis of Major Luxurious Resorts in Riyadh
For more information on the research report, refer to below link:
Ankur Gupta, Head Marketing & Communications