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Marriott International Plans to Double Number of Hotels in Saudi Arabia

A general view shows the Marriott hotel. (Reuters)
A general view shows the Marriott hotel. (Reuters)
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Marriott International Plans to Double Number of Hotels in Saudi Arabia

A general view shows the Marriott hotel. (Reuters)
A general view shows the Marriott hotel. (Reuters)

Marriott International plans to double the number of its hotels in Saudi Arabia during the next two years, Tourism Minister Ahmed al-Khatib announced on Thursday.

The move will create over 21,500 jobs that will support the kingdom’s goal to provide one million new jobs in the tourism sector by 2030, Khatib said on his Twitter account.

The announcement was made during the minister’s meeting with CEO of Marriott International Anthony Capuano, during which they discussed the company’s plans in the Saudi tourism sector.

Marriott has been operating in the kingdom for more than four decades, with its key hotel brands spread across major cities.

In October, Khatib said the sector had begun to recover from the coronavirus repercussions, highlighting an expected rapid growth that would affect the sector’s activities.

In other news, Colliers International said in a report that hotel occupancy rates is likely to reach 60 percent and 50 percent in Riyadh and Jeddah respectively during 2021.

Hotel occupancy rate is expected to reach 56 percent in al-Khobar, 32 percent in Madinah and 24 percent in Makkah, the research firm said in its monthly report for MENA hotels in November.

Colliers also pointed out that several markets began to recover starting from Q4 2020 and through 2021, as the pandemic was brought under control and travel restrictions began to ease.

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Saudi Arabia Sees Highest Level of Non-oil Private Sector Activity in 4 Months

The 1.5-point increase in the PMI reflects a larger expansion in both output and new orders. (Asharq Al-Awsat)
The 1.5-point increase in the PMI reflects a larger expansion in both output and new orders. (Asharq Al-Awsat)
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Saudi Arabia Sees Highest Level of Non-oil Private Sector Activity in 4 Months

The 1.5-point increase in the PMI reflects a larger expansion in both output and new orders. (Asharq Al-Awsat)
The 1.5-point increase in the PMI reflects a larger expansion in both output and new orders. (Asharq Al-Awsat)

Business activity in Saudi Arabia's non-oil sector accelerated to a four-month high in September, driven by strong demand, which led to faster growth in new orders. The Riyad Bank Saudi Arabia Purchasing Managers' Index (PMI), adjusted for seasonal factors, rose to 56.3 points from 54.8 in August, marking the highest reading since May and further distancing itself from the 50.0 level that indicates growth.

The 1.5-point increase in the PMI reflects a larger expansion in both output and new orders, alongside challenges in supply. The improvement in business conditions contributed to a significant rise in employment opportunities, although difficulties in finding skilled workers led to a shortage in production capacity.

At the same time, concerns over increasing competition caused a decline in future output expectations. According to the PMI statement, inventories of production inputs remained in good condition, which encouraged some companies to reduce their purchasing efforts.

Growth was strong overall and widespread across all non-oil sectors under study. Dr. Naif Al-Ghaith, Senior Economist at Riyad Bank, said that the rise in Saudi Arabia's PMI points to a notable acceleration in the growth of the non-oil private sector, primarily driven by increased production and new orders, reflecting the sector’s expansionary activity.

Al-Ghaith added that companies responded to the rise in domestic demand, which plays a crucial role in reducing the Kingdom's reliance on oil revenues. The upward trend also indicates improved business confidence, pointing to a healthy environment for increased investment, job creation, and overall economic stability.

He emphasized that this growth in the non-oil sector is particularly important given the current context of reduced oil production and falling global oil prices. With oil revenues under pressure, the strong performance of the non-oil private sector acts as a buffer, helping mitigate the potential impact on the country's economic conditions.

Al-Ghaith continued, noting that diversifying income sources is essential to maintaining growth amid the volatility of oil markets. He explained that increased production levels not only enhance the competitiveness of Saudi companies but also encourage developments aimed at expanding the private sector's participation in the economy.

This shift, he said, provides a more stable foundation for long-term growth, making the economy less susceptible to oil price fluctuations.