Saudi Arabia Tourism Report

Published 29 May 2015

  • 54 pages
  • Instant access to your report online and PDF format through your account library
  • Includes 3 free updated quarterly reports
$1,295.00
Saudi Arabia Tourism Report

BMI View: Saudi Arabia is set to see an increase rise in tourist arrivals between 2015 and 2019, with increasing numbers of business travellers and religious visitors boosting the tourist market within the country. Backed by governmental support, transport infrastructure investment and foreign hotel group development, the industry is in good shape. However, regional insecurity and low oil prices present a genuine downside risk that may affect government fiscal spending if continued in the long term.

Tourism is becoming increasingly important to Saudi Arabia as it looks to move away from an over-reliance on oil exports. It is estimated that more than 1.7mn additional jobs could be generated by further developing the tourism industry in the country, which will help to raise employment levels, especially in less-educated groups of workers in the country. The government is helping to improve the industry by investing in transport infrastructure, which is also helping provide a fiscal impetus into the economy, which has been somewhat hurt by the decline in oil prices in the past year. Major airport developments in Jeddah and Riyadh are well under way and are likely to help arrival figures reach 19.5mn by 2019.

Hotel investment has been high in the country for the past few years thanks to rising demand (especially for religious pilgrimages) and stable economic conditions attracting foreign investment. The focus recently has been on the development of high-end, luxury hotels, and this trend is continuing with high levels of investment in Jeddah, Mecca and Riyadh. While helping to meet demand for businessmen and more wealthy travellers, the country would benefit from introducing options for less opulent tourists, especially around the time of Hajj, when accommodation prices increase substantially. The reliance on religious tourism in parts of the country is also a concern, partly as it creates an unbalanced, seasonal tourism industry. The government is...

BMI Industry View
7
SWOT
9
Tourism
9
Political
11
Economic
13
Operational Risk
14
Industry Forecast
16
Inbound Tourism
17
Table: Inbound Tourism (Saudi Arabia 2012-2019)
18
Table: Inbound Tourism, Top 10 Markets By Arrivals, '000 (Saudi Arabia 2012-2019)
19
Outbound Tourism
19
Table: Outbound Tourism (Saudi Arabia 2012-2019)
20
Table: Outbound Tourism, Top 10 Destinations By Departures, '000 (Saudi Arabia 2012-2019)
21
Travel
21
Table: Receipts For Transport And Travel (Saudi Arabia 2012-2019)
21
Table: Breakdown Of Methods Of Tourist Travel (Saudi Arabia 2012-2019)
22
Hotels
23
Table: Hotel Accommodation (Saudi Arabia 2012-2019)
23
Industry Risk/Reward Index
25
Tourism Risk/Reward Index
25
Table: Middle East And North Africa Tourism Risk/Reward Index
26
Security Risk
26
Market Overview
28
Competitive Landscape
31
Domestic Hotels
31
International Hotels
32
Global Industry Overview
34
Global Assumptions
37
Global Macro Outlook
37
Table: Global Forecasts, 2014-2019
38
Table: Global And Regional Real GDP Growth, 2014-2017 (% change y-o-y)
39
Developed States
40
Table: Developed States, Real GDP Growth Forecasts, 2014-2017
41
Emerging Markets
42
Table: Emerging Markets, Real GDP Growth Forecasts, 2014-2017
44
Table: BMI Versus Bloomberg Consensus Real GDP Growth Forecasts, 2015 And 2016 (%)
45
Saudi Arabia Tourism Report Q3 2015
Saudi Arabia Tourism Report Q3 2015
- Business Monitor International Ltd Page 4
- Business Monitor International Ltd Page 4
Demographic Forecast
46
Demographic Outlook
46
Table: Population Headline Indicators (Saudi Arabia 1990-2025)
47
Table: Key Population Ratios (Saudi Arabia 1990-2025)
47
Table: Urban/Rural Population & Life Expectancy (Saudi Arabia 1990-2025)
48
Table: Population By Age Group (Saudi Arabia 1990-2025)
48
Table: Population By Age Group % (Saudi Arabia 1990-2025)
49
Methodology
51
Industry Forecast Methodology
51
Risk/Reward Index Methodology
52
Table: Weighting Of Indicators
54

The Saudi Arabia Tourism Report has been researched at source and features BMI Research's independent assessment and forecasts for tourist expenditure; government expenditure on tourism; passenger arrivals and departures by mode of transport, reason for travel, origin and destination; and the accommodation market.

BMI's Saudi Arabia Tourism Report provides industry professionals and strategists, corporate analysts, associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on the Saudi tourism industry.

Key Benefits

  • Benchmark BMI's independent tourism industry forecasts for Saudi Arabia to test other views - a key input for successful budgetary and planning in the Saudi tourism market.
  • Target business opportunities and risks in the Saudi tourism sector through our reviews of latest industry trends, regulatory changes and major deals, projects and investments in Saudi Arabia.
  • Assess the activities, strategy and market position of your competitors, partners and clients via our Company Profiles (inc. KPIs and latest activity).

Coverage

BMI Industry View

This contains a synopsis of our forecasts, and any changes, together with an overview of key trends and developments in the tourism industry, and an assessment of the impact of various economic and national factors which might affect the sector. It also covers new transport projects, new hotel developments, and acquisitions.

Industry SWOT Analysis

Analysis of the major Strengths, Weaknesses, Opportunities and Threats within the tourism sector and within the broader political, economic and business environment.

BMI Industry Forecast Scenario

Forecasts to end-2019 for all key indicators, supported by explicit assumptions, plus analysis of key downside risks to the main forecasts:

  • Inbound Tourism: Total arrivals (‘000 and growth % y-o-y), arrivals by region (‘000 and growth % y-o-y), arrivals by country (‘000 and growth % y-o-y), top 10 source countries for arrivals.
  • Outbound Tourism: Total departures (‘000 and growth % y-o-y), departures by regional destination (‘000 and growth % y-o-y), departures by country (‘000 and growth % y-o-y), top 10 destination countries.
  • Travel & Receipts: Methods of travel for arrivals (air, ship, rail) (‘000 and growth % y-o-y), international tourism receipts for transport (USDbn and growth % y-o-y), international tourism receipts for travel items (USDbn and growth % y-o-y).
  • Hotels: Hotel industry value (USDbn and growth % y-o-y), number of hotels (‘000 and growth % y-o-y), total overnight stays (‘000 and growth % y-o-y), length of stay, occupancy rate (%), number of total

BMI’s Tourism Risk Reward Index

BMI’s Risk Reward Indices provide investors (tour operators, tourism infrastructure investors, financial institutions) looking for opportunities in the region with a clear country-comparative assessment of a market’s risks and potential rewards.

Each of the country markets are scored using a sophisticated model that includes more than 40 industry, economic and demographic data points to provide an indices of highest to lowest appeal to investors, with each position explained.

Market Overview

This contains a comprehensive overview of the tourism industry in the country, its overall value, the value of its hotels industry, trends in the hotels industry and any new developments. It also contains an evaluation of the top 10 global hotel groups’ presence in the country, which brands are present in which cities, the number of hotels and any planned developments and strategies. The Market Overview also considers the tourism infrastructure developments in the country, in particular transport infrastructure projects such as ports and airports. Tables are also included from our regularly updated Key Projects Database, which contain details of projects, their value, the time frame, their current status, the companies involved and their estimated completion dates.

Competitive Landscape

This section provides insight into key domestic players in the hotel industry, discussing, for example, the number of hotels, brands, financial data, geographical spread, recent developments and strategies of individual companies.

Sources
The Tourism Reports draw on an extensive network of primary sources, such as multilateral organisations, government departments, industry associations, chambers and company reports.

*Company profiles are not available for every country. Those reprts instead contain information on the current activities of prominent companies operating in the market.

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