Thursday, June 1, 2023

Saudi Arabia Spends $110 Billion to Become World Leader in Luxury Hotels

Saudi Arabia is making substantial investments in luxury hotels as part of its Vision 2030 strategy. The country dedicates approximately $110 billion exclusively to hotel development. Moreover, the aim is to become a global leader in the hospitality industry. By leveraging over $1 trillion allocated to real estate and infrastructure projects.

Over the next four to five years, Saudi Arabia plans to nearly double its current number of hotel rooms to around 200,000. This expansion aligns with the country’s goal of transforming tourism, living, and lifestyle. The projects aim to create newer, more competitive, and appealing hotels and resorts. While ensuring that at least 50% of the proposed supply is operational by 2028.

Role of Giga And Mega Projects

Saudi Arabia’s vision of an ultra modern future is represented through a diverse array of giga and mega projects. These projects, which constitute a significant portion of the hotel supply pipeline, contribute to a 62% surge in the number of 4 and 5 star hotel rooms by the end of the decade.

In addition to land based destinations, Saudi Arabia is expanding its tourism to include the cruise industry, which is expected to play a crucial role. It projects to generate up to 50,000 jobs and attract 1.5 million visitors annually within the next five years. Moreover, the government’s strategy involves creating gateways and developments, with the notable $500 billion NEOM project as a key component. Nevertheless, the ultimate objective is to attract 100 million visitors by 2030.

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