Saudi Arabia’s hosting of global events to accelerate tourism growth: JLL Exec

Saudi Arabia’s tourism sector is expanding by 3-4% annually, driven by the rising number of both domestic and international visitors, said Sara Qassim, Executive Vice President and Head of Hotels and Tourism in Saudi Arabia at JLL Consultancy.

In an interview with Argaam on the sidelines of the Future Hospitality Summit, Qassim indicated that Saudi Arabia’s hosting of major sporting events, such as the FIFA World Cup 2034, is a strategic way to fulfill Vision 2030's goals rather than just for entertainment.

Saudi Arabia’s bid to host the FIFA World Cup 2034 stipulates that each host city must provide at least 15,000 hotel rooms designated for VIPs, such as players, official delegations, and diplomats, in addition to the team's supporters.

She added that each of the five host cities is also required to offer an additional 20,000 to 25,000 accommodation units, ranging from five-star luxury hotels to economic options, depending on the number and stage of matches held in each city.

Riyadh and Jeddah will host the semi-finals and finals, which requires a greater number of hotel rooms compared to other cities like Abha or Dammam, Qassim said.

“There is a healthy balance between supply and demand in the hospitality sector. Major cities such as Riyadh, Jeddah, Makkah, and Madinah record high occupancy rates. As demand increases, there will be a need to expand the supply of hotel rooms accordingly,” the official said.

A study on the 2022 Qatar World Cup experience revealed that private chalets and Airbnb were crucial, with occupancy rates of 70–80% as opposed to 50–55% in luxury hotels. This indicates that fans are choosing more adaptable and reasonably priced lodging options. These models are an addition to the hotel industry rather than a replacement, Qassim added.

As regards FIFA’s requirements, Qassim clarified that the focus was on the number of hotel rooms rather than enforcing particular global brands. This allows local investors to create a range of projects that adhere to local classification and standards.

“Saudi Vision 2030 is focused on key sectors such as tourism, entertainment, and sports, which are regarded as main drivers of economic growth,” said the official. She noted that major events serve as strategic tools to boost visitor numbers and attract investment.

Qassim also pointed out that Saudi Arabia hosts a wide range of events beyond the World Cup, such as Formula 1 and WWE, which support the country's year-round tourism demand.