Domestic tourism fuels Saudi occupancies
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Saudi tourism industry has witnessed lately a massive rise in number hotels being invested in, and occupied and similar growth in employment figures. There are around 3,700 accommodation facilities in the Kingdom – a third being hotels and many others being furnished apartments. Over 27% of permanently employed Saudis are in the tourism industry and a record number of new opportunities means there are now 1.1 million staff members within the sector.
Domestic tourism is on the rise and more local tourists are boosting the kingdom’s tourism revenue by staying in these room and apartments. There are two things that are particularly interesting about this high growth rate: firstly that these big numbers actually cover quite a small area and small percentage of the Kingdom’s GDP; secondly the way that a new trend in domestic tourism is affecting the industry and its prospects for the future. Tourism contributes SAR75 bn to the nation’s GDP, which constitutes just three percent of the total, and 77% of hotel investments are taking place in Makkah and Madinah alone.
An increase of 4.8 million domestic passengers between 2012 and 2013 is said to have occurred because of investments in the country’s tourism infrastructure, according to a report from the Saudi Commission for Tourism and Antiquities, and authorities are hopeful that this is an ongoing trend because of the increased spending of these local tourists and the greater revenue they bring. SR28 billion was brought in at this time and, unsurprisingly, accommodation with the sub-sector that received the greatest percentage of this expenditure.
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