Saudi Hotels Flourish as UAE Demand Declines

Jeddah, Saudi Arabia — August 14, 2023

In short: Saudi Arabia’s hotel market shows resilience amid UAE cancellations, thanks to domestic demand and geographic factors.

Saudi Arabia’s Hotel Market Holds Up Amid UAE Cancellations

Radisson’s COO for Middle East, Africa and Southeast Asia Pacific, Tim Cordon, attributes Saudi Arabia’s relative strength to domestic demand, fewer available rooms, and strategic geographic positioning. Cities like Jeddah on the Red Sea, further from Iran, continue to perform better compared to the Eastern Province, which faces challenges.

Industry Context

Saudi Arabia’s hotel market is more resilient due to its large population of 35–36 million and fewer hotel rooms compared to Dubai. This positioning allows cities like Jeddah to maintain performance despite the broader challenges faced by the UAE market.

Key Details

• Radisson’s assessment: Domestic demand, fewer available rooms, and geographic positioning are key factors.
• Geographic advantage: Cities like Jeddah, located further from Iran, are performing better than the Eastern Province.
• **No historical comparison provided in the source article.

What Travel Professionals Should Know

TMCs managing Saudi accounts should focus on Jeddah’s performance, leveraging its stronger market position amid UAE cancellations. The strategic geographic advantage of Jeddah makes it a key destination for travel trade professionals seeking stability in the Saudi market.

Frequently Asked Questions

What is the basis for Saudi Arabia’s market resilience?
According to Radisson, domestic demand, fewer available rooms, and strategic geographic positioning are the primary factors.

Which travel trade segments are affected?
This primarily impacts TMCs managing Saudi accounts, as well as hoteliers in Jeddah and other resilient cities.

When does this resilience take effect?
The source does not specify a timeline for this market resilience.

Reference:Source.