Tourism has been a key growth sector for the Middle East and North Africa in its drive towards a diversified and sustainable economy.

The UAE has led this trend — the country constitutes close to 34% of the roughly 600,000 room keys that are available in the region. Another standout hotel and tourism hotspot has been Egypt with 30% of the total available room keys in the region.

Whilst Saudi Arabia by no means is new on the regional tourism landscape, its hospitality offering is undergoing a shift from focusing purely on religious tourism, to showcase its fascinating natural landscapes and state-of-the-art developments. As the country embarks on an ambitious target of attracting 55 mn international tourists by 2030, we are likely to witness an additional circa 105,300 room keys across the Kingdom, which is 44% of the total new supply in the region till 2030 and 20% more than UAE and Egypt combined.

As the sector undergoes progressive change and new concepts are launched to address shifting demand, existing hotels will have to reinvent themselves to remain competitive and relevant.

This has to be balanced with sustaining the original format of the hotel whilst managing costs and delivering the desired outcome at the stipulated time. Going forward, refurbishment and introduction of new concepts will therefore be critical for maintaining healthy occupancy levels and ADRs (Average Daily Rates).

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