Saudi Arabian hospitality boom offers unmatched growth opportunities

| 12/11/2012 | Reply

Saudi Arabian hospitality boom offers unmatched growth opportunities for the hotel supply chain

In the face of increased competition and demand for high-quality services and modern interiors and electronics by the international traveler, the major hotel chains in Jeddah, Makkah and Madinah have embarked on a strategy of penetration, expansion and renovation of hospitality projects.

Saudi Arabia, November 12, 2012: The unparalleled growth witnessed in the hospitality sector within the Kingdom of Saudi Arabia over the last few years has created a huge increase in demand for new hotels and refurbishment of the existing ones.

The positive upturn in the Kingdom’s hospitality sector triggered by an influx of domestic and religious travel, which is approximately 2.8 million more than in 2010, offers unmatched growth potential for the development of interiors, hotel refurbishment, and the fit-outs sector. Many of the major hotel chains in Jeddah, Makkah and Madinah have embarked on a strategy of penetration, expansion and renovation of hospitality projects in the face of increased competition and demand for high-quality services, modern interiors and electronics by the international traveler.

According to a recent Ventures Middle East 2012 report about trends in the GCC interior contracting and fit-out market;   hotel projects likely to be completed in 2012 in the GCC will involve an interior spend of US$ 1.650 million – approximately 22.5 per cent of total project costs of US$ 7,334 million, with Saudi Arabia’s interiors and fit-out sector growing twice as quickly as the UAEs with it increasing by 125 percent to a value of US$ 3.5 billion in the current year.

For the Kingdom’s hospitality sector, this means that hotels are likely to spend heavily on renovation and refurbishment as they look to regain lost occupancies and counter the competition from the rising supply of new hotels with upgrades to existing ones proving to be a growing opportunity for the interiors as well as the hotel electronics market.

Furthermore, Al Khozama – the Riyadh-based commercial property development company is to invest more than US$140m expanding its hospitality operations in the kingdom to build new hotels and refurbish some of its existing properties in the Saudi capital including the Al Khozama Centre in Riyadh which will be converted to  a four-star deluxe property, replacing the existing hotel.

In view of this, The Hotel Show Saudi Arabia 2012 held at the Jeddah Center for Forums and Events between November 17th and 19th 2012, will bring forth excellent opportunities for leading international businesses to explore the magnitude of prospects opened by the hospitality boom.

Tim Wilson, Event Manager, dmg::events, said: “The phenomenal growth in the Saudi hospitality market has created significant opportunities for a number of technology and fit out sectors. The presence of companies like LG and Nowy Styl at The Hotel Show Saudi Arabia is a testament to the growth potential that exist in the Saudi Market We feel that this is the best time to bring a broad range of local and international companies from these sectors to The Hotel Show Saudi Arabia.”

Commenting on LG Electronics’ participation, Bret Moon, Regional Marketing Manager of LG Electronics, said: “As a company, LG Electronics has always believed in offering eco-sustainable hospitality solutions and technologies designed to optimise the guest experience. We are among the leaders in the regional electronics space and extremely bullish about the growth prospects that the KSA hospitality sector offers. We are confident that The Hotel Show Saudi Arabia and The Hotel Summit will offer us a great networking opportunity to seek strategic partnerships and insights into the Kingdom’s hotel industry.”

Another key exhibitor, ‘Nowy Styl’ from Poland who specialises in chairs for every business and leisure occasion is looking forward to participating in the Hotel Show in Saudi Arabia. Pawel Makowski, General Manager Middle East said: it is the one stop shop event which brings together Hotel and Hospitality Managers, Consultants and Architects from all over the Gulf. With rising business tourism and exponential expansion of the hospitality industry in UAE and KSA, STYLIS and NSG expect to increase their project business and strengthen their position in the Middle East,” he affirmed.

Held under the patronage of HRH Sultan bin Salman bin Abdulaziz Al-Saud, President and Board Chairman of Saudi Commission for Tourism and Antiquities [SCTA], The Hotel Show Saudi Arabia is organised by MICE Arabia Group, co-organised by dmg::events, and is a sister show to The Hotel Show, now in its 14th year in Dubai and renowned as the largest hospitality supply event in the MENA region.

Other key segments of the industry value chain are represented including Interiors & Design, Operating Equipment & Supplies, Technology and Horeca. More than 100 companies from 24 countries will be participating at this inaugural show in KSA.

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Category: Media & Events, Middle East & Africa, Partner Events, Travel & Hospitality

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