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At least 75 international hotels will enter the Saudi market over the next four years, local daily Arab News reported citing Salah Al-Bakheet Al-Talib, vice-president of the Saudi Commission for Tourism and National Heritage (SCTNH).
“Several global hotel companies are entering the Saudi market to operate 75 hotels over the next four years, with the support of the SCTNH, as a result of commission’s organization and development efforts to create a sustainable business environment for the hotel industry,” Al-Talib said.
The new hotels are seen to boost the market’s quality and expand available choices for tourists and visitors, he added.
Al-Talib’s remarks came after the SCTNH signed an investment agreement with Choice Hotels International, one of the world’s largest hotel companies, at the Arabian Travel Market 2016, recently held in Dubai.
According to the commission, negotiations are underway with other international hotel chains to enter the Saudi market.
The kingdom is currently in dire need of three- and four-star hotels, particularly since a large customer base exists for such offerings and the market for them is growing, Al-Talib added.
In a report commissioned by The Hotel Show Saudi Arabia, Germany-based TOPHOTELPROJECTS said that the Saudi hospitality industry is seeing a significant shift towards the development of mid-range hotels this year.
The report reveals that six out of the top ten brands with the most development currently underway throughout the kingdom are classified as mid-market. These include: Park Inn by Radisson; Hilton Garden Inn; Four Points by Sheraton; Aloft Hotels; Mercure; and Staybridge Suites.
As Saudi Arabia seeks to reduce its oil dependence and diversify its income sources, it plans to issue select visas to attract more tourists under the Vision 2030 strategy.
In April, Prince Sultan bin Salman, head of the SCTNH, launched a post-Umrah initiative to offer pilgrims the opportunity to convert their visas into tourist visas. The move is expected to bolster the tourism industry and create more jobs for Saudi nationals.
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