Saudi Arabia’s aggressive development of sites like AlUla, Neom, Diriyah Gate and more for tourism activities has attracted the attention of hospitality brands with roots in Asia, with several openings coming right up.
Minor Hotels, Dusit Hotels & Resorts, and Banyan Group are among those viewing the destination with optimism.
Minor Hotels has signed deals to open two hotels in Saudi Arabia under its luxury hospitality brand Anantara. The two properties coming up in Neom’s Trojena and Diriyah Gate are expected to be operational by 2027.
Speaking to TTG Asia at Arabian Travel Market 2024 happening this week, Ian Di Tullio, chief commercial officer, Minor Hotels, said: “Saudi Arabia has incredible resources be it in terms of heritage, culture or nature. It offers tourism experiences that are unmatched. I think Saudi Arabia is going to be among the top 10 tourism (destinations) globally, if not top five, in the next decade or so. We have a number of hospitality projects that we are working on with Saudi Arabia’s Tourism Development Fund (TDF). Over the next 10 years, we plan to expand our presence in Saudi Arabia by adding 30 hotels across various brands in our portfolio.”
Dusit Hotels & Resorts signed its first hotel in Saudi Arabia – Dusit Princess Al Majma’ah, Riyadh – which is expected to be operational by the end of this year or early 2024.
“Saudi Arabian tourism market is growing at a different level. We are excited to open our first hotel in the country. We are currently holding discussions with many interested parties to expand our presence in Saudi Arabia. What holds us in good stead is the fact that as a Thai hospitality brand, there is a good awareness about our hotels in Saudi Arabia as well as the Middle East in general,” said Nichlas Maratos, vice president – commercial, Dusit Hotels & Resorts.
Asian hospitality firms expect the domestic market to drive demand first and foremost.
“We will create tourism destinations within Saudi Arabia for locals to explore. A lot of demand is expected to be generated by the other GCC (Gulf Cooperation Council) countries, followed by India and other Asian markets like China and Thailand. Europe will also contribute to the overall demand,” added Tullio.
Contrary to the widespread belief that Saudi Arabia is solely concentrating on luxury travel, Tullio sees potential for mid-scale to luxury range of accommodation.
Banyan Group currently has one operational property – Banyan Tree AlUla. It is expected to open one more in the kingdom.
Overall, Saudi Arabia has plans to add 250,000 hotel rooms by 2030.
