Arab News, Sun, Mar 17, 2024 | Ramadan 7, 1445
‘Saudi Arabia could double hotel rooms in the next 10 years’
Saudi Arabia:
Saudi Arabia should double the number of hotel rooms in the next 10 years to
meet the rising number of religious tourists, a top official has said.
In an interview with Arab News, Elie Maalouf, CEO
of IHG Hotels and Resorts, said the available capacity is not sufficient enough
to meet the rising demand in Saudi Arabia, as the Kingdom is evolving as a
global tourism destination.
“You have the religious travel, which is a unique
segment of the Kingdom alone, which continues to grow. In fact, we understand
that today we cannot accommodate all the potential of religious travel. So we
probably need over the next ten years, no less than double the hotel rooms that
we have today in the Kingdom,” said Maalouf.
He said that IHG’s two new hotels, which will come
under the brand names Regent and Intercontinental and will be built in the
Kingdom’s King Abdullah Financial District, are expected to commence operations
in 2027.
Maalouf said: “The development of these hotels,
iconic properties, they are going to be the most luxurious and greatest hotels
in Riyadh, and we are proud to be doing it with KAFD.”
In a separate press statement, IHG said that
Regent Riyadh KAFD will mark IHG’s inaugural Regent property in the Kingdom’s
capital city. Regent Riyadh is expected to be a 250-key hotel and will offer a
signature restaurant, two specialty restaurants, a tea lounge, and two cafes,
along with a fitness facility and spa.
InterContinental Riyadh KAFD will have 400 keys
and will feature five food and beverage outlets, including a signature offering,
two specialty restaurants, and a lobby lounge. The hotel will also have
conferencing facilities, a fitness center spa, a swimming pool, and an indoor
recreation area.
Maalouf said that IHG is trying to build hotels
for both upper-luxury and middle-class people in the Kingdom, as well as opening
facilities in Saudi Arabia’s giga-projects and megacities across the Kingdom.
“We are opening up new hotels in all the
giga-cities that are being developed, there’s NEOM or Diriyah or Red Sea or
AlUla. And we are also opening up in the megacities, not just the giga-cities,”
said Maalouf.
He said: “It’s not just luxury and lifestyle. It’s
also our hotels, like Holiday Inn Express. We announced a partnership with a
local investor for 13 new Holiday Inn Express across the Kingdom. So we have a
stay for everybody. The affordable everyday, middle-class people traveling for
business or for leisure, all the way to the high experiential, upper luxury.”
Maalouf said that IHG has a proven track record in
Saudi Arabia, and the group is now trying to ramp up its operations in the
Kingdom.
“We’ve been in the Kingdom 50 years. I think this
year is our 50th year. We started in 1975, Riyadh with the Intercontinental. Now
we have over 40 hotels in the Kingdom, nearly 40 under development,” said the
official.
He said IHG is also trying to increase the rate of
Saudization in their hotels.
“In our many years of experience here, we’ve
learned a lot. First, we’ve built relationships, incredible relationships, with
the government, with investment partners, with corporations. And we’ve built a
team. We have a team that’s very local. I’m proud that we are 46 percent locals
right now toward a 50 percent Saudization target,” Maalouf said.
He continued: “We think we’re aligned with Saudi
Arabia’s economic contribution and the job growth. But we also think we can
contribute and we are contributing to the Saudization to employ more local
nationals. Our plans feature adding another 6,000 Saudi nationals between now
and 2030.”
According to Maalouf, Saudi Arabia has all the
ingredients and potential to emerge as one of the most sought-after tourist
destinations globally.
He said several factors, including the Kingdom’s
economic diversification journey, growth of the gross domestic product and a
significantly young population, will contribute to the growth of Saudi Arabia in
the tourism sector.
“The Kingdom is marketing itself or marketing its
destination. Do people know that there are destinations in the Kingdom where
even in the summer it’s 25 degrees versus 45 in London? Most people don’t know
that. Do they know there are wonderful beaches that actually stay cool in the
summer? They don’t know that. Do they know how lovely the weather is this time
of year when I’m here now?” he said.
Maalouf said the number of tourists visiting Saudi
Arabia will increase steadily if the Kingdom successfully pursues its Vision
2030 plans.
“I’m sure that after Vision 2030, which is
approaching us, where in 2024 there will be Vision 2035 and 2040 to continue
that. I’m confident that will be. And if we persist with this vision and build
upon it, the demand will grow, tourism will grow, domestic and international,”
Maalouf said.
Maalouf also talked about the dynamic shift in the
minds of visitors while visiting a hospitality destination.
He believes visitors tend to spend less time in
rooms, and instead, they wish to spend quality moments in public spaces,
restaurants, cafes, wellness centers and spas.
“They want healthier food, they want better
quality fitness, they want wellness programs. Our brands are perfectly tailored
to that. We cover and we’re designing wellness into all of our hotels, all of
our brands,” said Maalouf.