Saudi Arabia is attracting numerous investors to the region as its hospitality and tourism sector holds solid promising opportunities. PKF hospitality group, an internationally recognized leader in the field of hospitality, sees Saudi Arabia as a representing the single biggest opportunity for hospitality and tourism, a position it’s likely to retain for at least five more years.
As with all transformative periods, the country’s fast-evolving industrial landscape can be met with some doubt, especially with regards to its projects’ timeline, according to PKF experts. However, they believe that Saudi Arabia will surprise many and will be a changed country in the years to come.
“Way past 2030, many of the mega projects will be completed and house a transformed population. Whether this transformation will go without certain upsets and setbacks remains to be seen,” the representative said.
Benchmark Tourism Strategy
PKF hospitality group recently held one of its 196+ spotlight events in Riyadh in recognition of the significant amount of projects that have been announced for Saudi Arabia. The majority of these projects, several of which estimated to be worth over $100bn (SAR375.1bn) each, form part of the very ambitious Saudi Vision 2030.
This strategic road map is set to harness the strength and strategic position of the Kingdom while reducing its reliance on oil. The focus areas, on which at least $800bn (SAR3tn) will be spent, are tourism, health infrastructure and education. The incentive behind the investment is to create products that attract the local traveller, the millions of pilgrims who come to Saudi Arabia to visit the holy sites, and the discerning international traveller seeking unique experiences and adventures.
Leading and Achieving
NEOM, the Red Sea Project, Qiddiya, and Diriyah Gate are just some of Vision 2030’s giga-projects that have already broken ground and dispelled the particular concerns around their completion.
Nils Heckscher, Head of PKF’ Africa Consulting Practice, also overseeing PKF’s Middle East operations, said: “Yes, I also think, that some may not be seen completed on time. It is a simple fact that know-how, materials and in the end staff to run these places are not in high supply. Yet, some we’ll see completed on time no doubt.”
First on that list will be Trojena, the official host location of the Asian Winter Games 2029. Much coverage was received about this venue of choice with obvious connotations about heat and desert coming to mind. Yet the region does actually see snow in winter and is in general 10 degrees cooler than the rest of the country. Impressive architecture and technical advances will make the holding of the competitions in the various winter sport disciplines possible.
While there is a definite focus on tourism, NEOM, will, in addition to snow-capped Trojena, feature a tech city, a seaside location and an international sea port; residential, retail and office spaces will complete this mega city between mountains and the Red Sea.
Sustainability is an essential cornerstone of these projects, and plays a huge role in designing, operating, and maintain them. Heckscher finds that: “It is heartening to see public-private partnerships that have a strong focus on ESG principles and that intend to build in a sustainable manner; source local materials as well as design and employ locals who will be trained and given ample opportunity to advance. These are fundamental building blocks in creating great and sustainable destinations.”
“We will continue to add value to our clients’ projects and believe that there is a great need for the type of services we provide. Saudi Arabia currently represents the single biggest opportunity for hospitality and tourism, and that is set to continue for at least another five years”, says Christian Walter, Global CEO PKF hospitality group.
