Seasonality
In addition to the onslaught of local leisure tourists looking to escape the heat, Jeddah witnesses an influx of government and corporate business in the summer months.
“Jeddah also has some government business,” explains Maier. “The king is here for about three months every year and he normally takes the business with him — it is a long tradition that the king of Saudi Arabia and his cabinet move to Jeddah during the summer months and go to Makkah in the Ramadan period.”
As many businesses already have offices in Jeddah, seasonal relocation is relatively easy for those looking to relocate when the King moves away from Riyadh for the summer period.
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“Jeddah is still a major business hub for a lot of Saudi corporate companies,” explains Dabbas.
“Many businesses used to have their main headquarters in Jeddah, although over the last decade the majority of them moved to Riyadh, being the capital. However, the city remains an important location for corporate business, and for government related diplomats because most of the consulates are represented in Jeddah as well,” he adds.
From the variety of visitors Jeddah boasts, its unique selling point to hoteliers is its diversity — it captures a piece of the religious market, has a healthy base for business tourism, and is one of the few places in Saudi Arabia to attract any form of leisure guests.
“There is currently growth in the tourism business in Jeddah because the government is preparing more infrastructure than ever — now the King Abdullah Aziz airport is under expansion, they will hopefully have 40 million passengers coming through the airport when it is finished,” says Dabbas.
“This, as well as the improvement of the visa process for Saudi Arabia, will have a positive impact on the hotel business in Jeddah, and this will encourage other developers and investors to put more in to the hospitality industry and travel business here,” he concludes.
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