Middle East > Saudi Arabia > The hospitality sector in the Kingdom of Saudi Arabia

Saudi Arabia: The hospitality sector in the Kingdom of Saudi Arabia

2012/12/23

The hospitality sector in the Kingdom of Saudi Arabia has witnessed an unprecedented boom over the last several years. Saudi Arabia’s in general economy shows positive increase in GDP until 2016.

According to the 2012 Economic Impact Statement Saudi Arabia published by the World Travel & Tourism Council, the total contribution of the travel and tourism sector to the country’s GDP in 2011 was $43 billion, which equals 5.4 %, with a forecasted increase of 3.7 % in 2012 to $44.6 billion.

The new figures released by Business Monitor International (BMI) predict the number of visitors to KSA will increase to 15.8 million by 2014; approximately 2.8 million additional than in 2010, which in turn has translated into a steady increase in request within amount hospitality related sectors, including the food and beverage industry.

According to an eTN World Travel Industry News statement pertaining to the first quarter of 2012, international tourists have spent a total of SR7.1 billion in the Kingdom of which % was spent on food. The total spending of domestic tourists amounted to SR7.4 billion, with a staggering 23 % spent on food and beverages.

Even though Saudi Arabia is a leading player in regional food production, over $5 billion worth of food and beverage products are currently imported each year to the Kingdom. According to the Middle East Foods Statement 2012, Saudi Arabia imports approximately 63 % of the entire Middle East’s food and beverage imports.

With the increasing request within the country and the boom in the hospitality sector, there is a new potential for foreign investment in the food and beverage industry.

The Alpen Capital GCC Food Sector Statement 2011 recognized that external investments in the food processing sector have ascended significantly, with strong multinational food and beverage companies ready to conquer the Kingdom’s market and, given the significant increase potential, as well setting up food processing plants in Saudi Arabia.

Related Articles

Saudis seek first bank loan in a decade as oil rout hits state coffers
2016/04/16 Saudi Arabia is seeking a bank loan of between $6-billion (U.S.) and $8-billion, sources familiar with the matter told Reuters, in what would be the initial significant foreign borrowing by the kingdom’s government for over a decade. Riyadh has asked lenders to submit proposals to extend it a five-year U.S. dollar loan of that size, with an option to increase it, the sources said, to help plug a record budget deficit caused by low oil prices.
It’s time for the Saudis to become part of the oil price solution
2016/04/15
Riyadh Metro New metro set to transform life in the capital
2016/04/07 Described by officials as the major public transport system currently under development in the world, the $23 billion Riyadh Metro project is on track to be completed by the end of 2018, before than its scheduled 2019 launch date, and is set to change everyday life in the Saudi capital. Despite the government’s reductions on spending last year, which has slowed or suspended work on some of its projects, Riyadh Metro has remained unaffected. According to Alwalid Alekrish, Director of Construction Development Projects and Project Director of the Riyadh Metro at the Arriyadh Development Authority (ADA), the metro is being paid for due from ring-fenced national funds – a clear sign of its importance to the government and the impact it will have – and therefore has no specific deficit or borrowing conditions to impact on its construction.
Zuma arrived in Riyadh on Saturday afternoon ahead of tomorrow's national visit.
2016/03/31 President Jacob Zuma is on a national visit to the Kingdom of Saudi Arabia to strengthen bilateral political and economic relations, the Presidency said on Saturday. Zuma arrived in Riyadh on Saturday afternoon ahead of tomorrow's national visit. "The national visit... will serve as an significant structural catalyst to strengthen bilateral political and economic relations, in particular by strengthening co-operation in the areas of trade and investment and in support of expanding cultural and people-to-people interaction between the two nations," it said in a statement.
Al-Babtain Power & Telecoms GCC number one now eyes new markets
2016/03/01 Ibrahim H Ababtain, Chairman of Al-Babtain Power & Telecommunication Company, explains what makes the company the region’s leader in outdoor lighting, transmission & distribution, telecommunications, structural steel and galvanizing services.