Makkah Fairmont, the most iconic hotel to open in Saudi Arabia in recent years, was designed by by Dar Al-Handasah (Shair and Partners) with interior Makkah Fairmont, the most iconic hotel to open in Saudi Arabia in recent years, was designed by by Dar Al-Handasah (Shair and Partners) with interior

New Demand, New Designs
The enthusiasm in Saudi Arabia’s hotel market is driven by growing demand and emerging opportunities in the business and leisure travel sectors.

High oil prices have generated an increase in international business activities in the kingdom and the number of business arrivals is set to double over the next four years.

Furthermore, the government has finally embraced the importance of tourism, and in February announced an US $89 million investment to encourage domestic travel among nationals (see page 5).

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“The market in Saudi Arabia has picked up dramatically in the past two years,” continued Tabet. “You only need to visit the place to experience the demand for hotels. I’ve just come back from Riyadh to discuss ideas for a new hotel project, and finding somewhere to stay myself was a nightmare!

“The demand is for hotel rooms, hotel apartments and serviced apartments. However, it is taking a while to get things moving because historically, the market has been very slow. You can’t just turn the tap on — people first need to understand the needs of the market.”

Currently, demand is generated by business travellers, with a growth in domestic tourism expected thereafter. Therefore, new hotel architecture projects are designed around the MICE sector, but architects are mindful that demand will balance in the future.

“The majority of existing hotels, disregarding those built within the last few years, are aimed at the business market,” explained Godwin Austen Johnson partner, Keith Gavin.

“Resort hotels are few and far between and generally they are more of a hybrid property — which is very different to the type of resort hotels we know in the UAE or Asia.

“However, I think there is an emerging trend to provide more holiday retreats in KSA for Saudi nationals. Each year, a significant number of wealthy Saudis travel abroad during the summer months and spend large sums of money in foreign countries.

The government is trying to address this by providing more home-grown resorts and culturally acceptable entertainment facilities in the Kingdom.”