With the entry of international hotel brands like Conrad, Marriott, and Best Western into Saudi Arabia’s Makkah, the hospitality sector continues to reflect market confidence, according to a new report.
In its first report on Makkah, A City within a City, real estate consultancy, JLL, addresses an almost unlimited global demand for hotel and other tourist facilities in the area due to the continued growth of religious tourism, creating huge opportunities for both developers and investors to upgrade existing properties and create new ones.
Earlier this year, JLL signed a Memorandum of Understanding (MoU) with the Makkah Chamber of Commerce & Industry to help improve transparency in the Saudi real estate market. As part of the collaboration, JLL worked with key players and stakeholders in Makkah to release this first comprehensive report on the city’s real estate market.
The report states that the Saudi 2030 Vision recognises the crucial role religious tourism can play in diversifying the economy away from dependence upon the oil and gas sector with religious pilgrims currently contributing 2% – 3% of Saudi’s GDP. There are plans to roughly double the capacity to accommodate both Umrah and Hajj visitors to around 15 million and 5 million respectively by 2020.
Jamil Ghaznawi, national director and country head of JLL Saudi Arabia, said: “Increasing religious tourism in line with Saudi Vision 2030 will create huge opportunities in the retail, hotel and broader accommodation sectors in Makkah. The long term prospects for the hotel sector are extremely positive given the reliance on accommodation providers to support the global unlimited demand of religious pilgrims to Makkah. More info
By Paromita Dey www.constructionweekonline.com