Jadwa Investment expects the Saudi Arabia presidency of G20 will have a visible short-term impact felt through higher spending at hotels, business tourism, restaurants and shops, and associated local labor market.
The firm said in a research statement that Riyadh is expected to host approximately 22,000 to 25,000 visitors in 2020 inclusive of the main summit in November.
“Despite being a city which is accustomed to a large number of tourists, a sizable rise in demand for hotel rooms during the G20 summit will result in a rise in prices as well,” the statement noted.
Jadwa also expects occupancy and prices to spike significantly during the G20 summit, especially if it coincides with other events, such as the Riyadh Season 2020.
“Overall, with less than a year to go for the main summit, we observe great opportunities for sectors such as hospitality, retail, and tourist and entertainment services to accommodate the anticipated rise in demand for the year ahead,” it said.
“While the direct measurable impact on the Kingdom’s non-oil private sector GDP will be lifted by an additional 0.2%, the long-term benefits will continue in years after, as the Kingdom witnesses the rise of its perception as a global destination for business and tourism,” Jadwa further added.
In December 2019, Saudi Arabia assumed the G20 presidency, which will lead up to the Leaders’ Summit in Riyadh on Nov. 21-22, 2020, data compiled by Argaam showed.
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