BMI View: Following the tragic loss of life in the September 2015 stampede during a Hajj ritual outside of Mecca, the government , having come under significant international criticism for its handling of the event, has committed to major inv estments in transport, safety and accommodation infrastructure in order to support the rapid expected expansion in international arrivals each year for religious pilgrimage. Over the longer term the government is also keen to expand its tourism industry, with some USD11.6bn of investments in the tourism sector reportedly planned or underway which could eventually help Saudi Arabia support a more diverse tourism market.
|Total arrivals, '000||14,276.20||14,306.75||14,824.31||15,357.43||16,171.00||17,184.05||18,308.32||19,543.75|
|Total arrivals, '000, % y-o-y||-18.4||0.2||3.6||3.6||5.3||6.3||6.5||6.7|
|International tourism receipts, SARbn||31.50||32.38||34.41||38.00||40.13||42.31||46.00||47.11|
|International tourism receipts, SARbn, % y-o-y||-9.8||2.8||6.3||10.4||5.6||5.4||8.7||2.4|
|International tourism receipts, USDbn||8.40||8.64||9.17||10.13||10.70||11.28||12.27||12.56|
|International tourism receipts, USDbn, % y-o-y||-9.8||2.8||6.2||10.4||5.7||5.4||8.7||2.4|
Key Updates and Forecasts
Religious pilgrimages remain the largest source of inbound tourism to Saudi Arabia and the government continues to invest in supporting infrastructure such as the 450km high speed rail network connecting Madinah with Makkah, King Abdullah Economic City and Jeddah which is due to open in 2016.
We expect inbound arrivals to increase rapidly over the forecast period, rising from 15.4mn in 2015 to 19.5mn in 2019 which will provide a boost to tourism related expenditure and hotel industry value.
International air connectivity continues to expand: Etihad Airways is launching new flights between Riyadh and Abu Dhabia in December 2015 via codeshare partner flynas while ExecuJet Middle East is also planning on expanding regional operations.
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.
- 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).
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.
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.
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.
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.