Traditionally reliant on religious tourism, as well as regional visitation, current projects underway in KSA include The Red Sea, Qiddiya, Amaala, Al Ula and NEOM, to name a few. These developments will become home to some of the largest mixed-use schemes and will undoubtedly encourage travel demand and transform the hospitality landscape and offering.
The current pandemic, which has had a tremendous impact on the hotel market both globally and regionally, has fueled local and domestic travel in the kingdom and potentially accelerated the development of hospitality projects.
Inbound and Domestic Travel
In 2019, as per Saudi Arabia Tourism and Research Centre, visiting the country for religious purposes constituted 64 percent of total inbound tourism to Saudi Arabia. This was followed by travel for business and conferences (15 percent), visiting family and friends (14 percent) and entertainment and shopping (the remaining 5 percent). Inbound and domestic trips made to and in Saudi Arabia reached 16.5 million and 47.5 million in 2019 respectively, reflecting an overall increase of 9 percent compared to 2018.
In the short term, domestic travel is expected to lead Saudi Arabia’s recovery from COVID-19 as lockdown restrictions are eased. However, resurgence of regional and international visitors will depend on vaccination rollouts, traveler confidence and government policies.
In the long term, initiatives that will be implemented under Vision 2030 and the easing of visa restrictions – with the introduction of tourist visas – mean…