Travel
Travel and Tourism

Travel And Tourism in Saudi Arabia

Saudi Arabia

Euromonitor International's Travel And Tourism in Saudi Arabia report offers a comprehensive guide to the market at a national level. It looks at travel accommodation, transportation, car rental, tourist attractions and retail travel. It identifies the leading companies and offers strategic analysis of key factors influencing the market, including background information on disposable income, annual leave and holiday taking habits.

Buy online to access strategic market analysis and an interactive statistical database of market size data for travel accommodation, transportation, car rental, travel retail, tourism attractions and health and wellness tourism, tourism inflows and outflows, tourism spending and company and brand shares.

Tables: 101  |  Publication date: Nov 2009
Cost: 
GBP1190.00

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  • Get insight into trends in market performance
  • Pinpoint growth sectors and identify factors driving change
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Product coverage

Car rental; Demand factors; Health & wellness tourism; Tourism flows domestic; Tourism flows inbound; Tourism flows outbound; Tourism receipts and expenditure; Tourist attractions; Transportation; Travel accommodation; Travel retail

Executive summary

Crisis or no crisis...

The global economic downturn has certainly taken its toll on the travel and tourism industry, with travel accommodation, airlines, car rental and all markets suffering from a loss of confidence and from increasingly cost-conscious tourists. And yet, Saudi Arabia seems to be surviving the crisis rather well. The Kingdom’s travel industry is widely dominated by religious and domestic tourism, which means it might in fact be fairly resilient to the crisis, as the Hajj trip, undertaken by hundreds of thousands of Muslims each year, is more of an “obligation” and demonstration of faith, while domestic tourism is less costly and increasingly popular in Saudi Arabia. Therefore, the outlook for domestic tourism is in fact rather positive, with healthy growth expected during the next five years, while inbound travel is expected to grow moderately. Outbound travel is expected to suffer the most in Saudi Arabia; a market which had already started to decline, and which should suffer more in the years to come.

Growth in domestic tourism

The strong thrust behind Saudi Arabia’s recent growth in domestic tourism is widely attributed to the government’s efforts to boost this market and encourage Saudis to spend their money within the country. However, there are also very strong cultural and traditional reasons which make Saudis more likely to travel within the country than outside of it. Since the 2001 attack on the US, and the ensuing global war on terrorism, Saudi Arabians have actually felt rather unwelcome in the West, and their attachment to their roots and origins has taken new breadth. New buildings and sites in Saudi Arabia are being added to the UNESCO World Heritage List, giving more importance to the richness of existing sites, and the tourism authority is increasingly promoting historic sites and the country’s cultural wealth to encourage domestic tourism. Saudis also have high disposable incomes, which will keep them travelling, but increasingly within Saudi Arabia.

Religious spirit

The growth of religious tourism was historically the cornerstone of Saudi Arabia’s tourism industry. As such, every other market benefited from religious tourism, as the Kingdom’s infrastructure was born from the large number of pilgrims coming to the Kingdom each year. Even domestic tourism could be developed thanks to religious tourism. More than 15 million domestic trips out of the total of nearly 30 million are religious tourists, and more than 50% of inbound tourists are religious tourists. Hotels started mushrooming to address religious tourism, transportation networks grew, and, even more recently, medical tourism in the Kingdom started feeding off the growth of religious tourism in Saudi Arabia. Religious tourism will continue to grow strongly, and is set to help save the Kingdom’s travel and tourism industry from the upcoming years of economic recession.

Lower costs, tougher competition

Another factor which is also encouraging the development of the domestic travel market is the launch of low cost airlines, which are offering cheap fares on domestic routes. The start of the operations of Nas Air and Sama Airlines in 2007 breathed new life into the domestic travel market. Saudis are naturally inclined to choose their products by comparing prices more than anything, and this new segment clearly encouraged them to travel more. As a case in point, both airlines have been operating to full capacity since their launch in 2007. This also brought fierce competition to the Kingdom’s national carrier, Saudi Arabian Airlines (SAA), which found itself forced to renew its fleet and engage in more aggressive promotion. SAA is striving to maintain its leadership status on international routes, but finds regional competition increasingly tough to handle, especially as Emirates Airlines has already stolen SAA’s number one position in the region.

Local brands to lead

Like in most regional markets, local chains of hotels in Saudi Arabia is still a new concept, as most large hotels are managed by international hotel management groups. Hotels in the Kingdom belong to tens of international companies, but none are owned or managed by a Saudi chain. Rotana Group from the UAE is, to date, the only truly local brand belonging to a local group. However, Rotana and other potential and upcoming hotel chains in Saudi Arabia have not yet succeeded in strongly establishing themselves in Saudi Arabia. The development of Saudi, local brands as big hotel chains is likely to be the next trend, with the likes of Zam Zam, which started operating in 2006, bringing a breakthrough to the region. Zam Zam is managed by Accor, but has still managed to establish very strong local affinities. This, however, is not stopping global players entering the market, as the Kingdom’s hotels sector is seen as very embryonic and open to many more developments.

Table of contents

TRAVEL AND TOURISM IN SAUDI ARABIA : MARKET INSIGHT

EXECUTIVE SUMMARY

Crisis or no crisis...

Growth in domestic tourism

Religious spirit

Lower costs, tougher competition

Local brands to lead

KEY TRENDS AND DEVELOPMENTS

Economic Indicators

Legislative Environment – Visas

Legislative Environment – Islamic Rules

Government tourism policy

Sustainable Tourism

Consumer Lifestyles

Low Cost Carriers

Emerging Niche Sectors

Internet Developments

TERRORISM AND SECURITY

LEAVE ENTITLEMENT

CONSUMER DEMOGRAPHICS

BALANCE OF PAYMENTS

MARKET INDICATORS

Table 1 Leave Entitlement: Volume 2005-2008

Table 2 Holiday Demographic Trends 2003-2008

Table 3 Holiday Takers by Sex 2003-2008

Table 4 Holiday Takers by Age 2003-2008

Table 5 Length of Domestic Trips: 2003-2008

Table 6 Length of Outbound Departure: 2003-2008

Table 7 Seasonality of Trips 2005-2008

MARKET DATA

Table 8 Balance of Tourism Payments: Value 2003-2008

DEFINITIONS

Tourism parameters

Travel accommodation

Transportation

Car rental

Travel retail

Tourist attractions

Health and wellness

Internet sales

Internet sales: dynamic packaging

Internet sales: traditional package holiday

Summary 1 Research Sources

LOCAL COMPANY PROFILES - SAUDI ARABIA

AL TAYYAR TRAVEL GROUP CO LTD - TRAVEL AND TOURISM - SAUDI ARABIA

STRATEGIC DIRECTION

KEY FACTS

Summary 2 Al Tayyar Travel Group Co Ltd: Key Facts

Summary 3 Al Tayyar Travel Group: Operational Indicators

COMPANY BACKGROUND

COMPETITIVE POSITIONING

Summary 4 Al Tayyar Travel Group: Competitive Position 2008

ELAF TRAVEL, HOTELS AND TOURISM CO - TRAVEL AND TOURISM - SAUDI ARABIA

STRATEGIC DIRECTION

KEY FACTS

Summary 5 Elaf Travel, Hotels and Tourism Co.: Key Facts

COMPANY BACKGROUND

COMPETITIVE POSITIONING

Summary 6 ELAF: Competitive Position 2008

SAUDI ARABIAN AIRLINES - TRAVEL AND TOURISM - SAUDI ARABIA

STRATEGIC DIRECTION

KEY FACTS

Summary 7 Saudi Arabian Airlines: Key Facts

Summary 8 Saudi Arabian Airlines: Operational Indicators

COMPANY BACKGROUND

COMPETITIVE POSITIONING

Summary 9 Saudi Arabian Airlines: Competitive Position 2008

ZAM ZAM SOFITEL GRAND SUITES - TRAVEL AND TOURISM - SAUDI ARABIA

STRATEGIC DIRECTION

KEY FACTS

Summary 10 Zam Zam Sofitel Grand Suites: Key Facts

COMPANY BACKGROUND

COMPETITIVE POSITIONING

TOURISM FLOWS INBOUND IN SAUDI ARABIA

HEADLINES

TRENDS

COUNTRY OF ORIGIN

INBOUND DEMOGRAPHIC PROFILE

MODE OF TRANSPORT

PURPOSE OF VISIT

CITY ARRIVALS

INCOMING TOURIST RECEIPTS BY COUNTRY

PROSPECTS

SECTOR DATA

Table 9 Arrivals by City in Saudi Arabia 2007/2008  

Table 10 Arrivals by Country of Origin: 2003-2008

Table 11 Leisure Arrivals by Type 2005-2008

Table 12 Business Arrivals: MICE Penetration 2005-2008

Table 13 Arrivals by Method of Transport: 2003-2008

Table 14 Arrivals by Purpose of Visit: 2003-2008

Table 15 Incoming Tourist Receipts by Country: Value 2003-2008

Table 16 Tourism Expenditure by Sector: Value 2003-2008

Table 17 Method of Payments for Incoming Tourist Receipts: % Breakdown 2005-2008

Table 18 Forecast Arrivals by Country of Origin: 2008-2013

Table 19 Forecast Arrivals by Method of Transport: 2008-2013

Table 20 Forecast Arrivals by Purpose of Visit: 2008-2013

Table 21 Forecast Incoming Tourist Receipts by Country: Value 2008-2013

Table 22 Forecast Incoming Tourist Receipts by Country: Value 2008-2013

TOURISM FLOWS OUTBOUND IN SAUDI ARABIA

HEADLINES

TRENDS

DESTINATIONS

OUTBOUND DEMOGRAPHIC PROFILE

MODE OF TRANSPORT

PURPOSE OF VISIT

OUTGOING TOURIST EXPENDITURE BY COUNTRY

PROSPECTS

SECTOR DATA

Table 23 Departures by Destination: 2003-2008

Table 24 Leisure Departures by Type 2005-2008

Table 25 Business Departures: MICE Penetration % Breakdown 2005-2008

Table 26 Departures by Method of Transport: 2003-2008

Table 27 Departures by Purpose of Visit: 2003-2008

Table 28 Outgoing Tourist Expenditure by Country: Value 2003-2008

Table 29 Outgoing Tourist Expenditure by Sector: Value 2003-2008

Table 30 Method of Payments for Outgoing Tourism Spending: % Breakdown 2005-2008

Table 31 Forecast Departures by Destination: 2008-2013

Table 32 Forecast Departures by Method of Transport: 2008-2013

Table 33 Forecast Departures by Purpose of Visit: 2008-2013

Table 34 Forecast Outgoing Tourist Expenditure by Country: Value 2008-2013

TOURISM FLOWS DOMESTIC IN SAUDI ARABIA

HEADLINES

TRENDS

DESTINATIONS

MODE OF TRANSPORT

PURPOSE OF VISIT

DOMESTIC TOURIST EXPENDITURE

PROSPECTS

SECTOR DATA

Table 35 Domestic Trips by Destination: 2003-2008

Table 36 Domestic Trips by Purpose of Visit and by Method of Transport: 2003-2008

Table 37 Domestic Tourist Expenditure: Value: 2003-2008

Table 38 Method of Payments for Domestic Tourism Spending: % Breakdown 2005-2008

Table 39 Forecast Domestic Trips by Purpose of Visit and by Method of Transport: 2008-2013

Table 40 Forecast Domestic Tourist Expenditure: Value: 2008-2013

TRAVEL ACCOMMODATION IN SAUDI ARABIA

HEADLINES

TRENDS

HOTELS

COMPETITIVE LANDSCAPE

PROSPECTS

SECTOR DATA

Table 41 Hotel Performance in Saudi Arabia 2007/2008

Table 42 Travel Accommodation Sales by Sector: Value 2003-2008

Table 43 Travel Accommodation Outlets by Sector: Units 2003-2008

Table 44 Travel Accommodation by Sector: Number of Rooms 2003-2008

Table 45 Regional Hotel Parameters 2008

Table 46 Travel Accommodation Sales: Internet Transaction Value 2003-2008

Table 47 Hotel National Brand Owners by Market Share 2004-2008

Table 48 Hotels National Brand Owners by Key Performance Indicators 2008

Table 49 Forecast Travel Accommodation Sales by Sector: Value 2008-2013

Table 50 Forecast Travel Accommodation Outlets by Sector: Units 2008-2013

Table 51 Forecast Travel Accommodation Sales: Internet Transaction Value 2008-2013

TRANSPORTATION IN SAUDI ARABIA

HEADLINES

TRENDS

AIRLINES

COMPETITIVE LANDSCAPE

PROSPECTS

SECTOR DATA

Table 52 Transportation Sales by Sector: Value 2003-2008

Table 53 Airline Capacity: 2003-2008

Table 54 Airline Utilisation: 2003-2008

Table 55 Airline Passengers Carried by Distance: % Breakdown: 2003-2008

Table 56 Transportation Sales: Internet Transaction Value 2003-2008

Table 57 Airline Market Shares 2004-2008

Table 58 Airlines National Brand Owners by Key Performance Indicators 2008

Table 59 Forecast Transportation Sales by Sector: Value 2008-2013

Table 60 Forecast Transportation Sales: Internet Transaction Value 2008-2013

CAR RENTAL IN SAUDI ARABIA

HEADLINES

TRENDS

COMPETITIVE LANDSCAPE

PROSPECTS

SECTOR DATA

Table 61 Car Rental Sales by Sector and Location: Value 2003-2008

Table 62 Structure of Car Rental Market: 2003-2008

Table 63 Average Car Rental Duration by Sector 2004-2008

Table 64 Average Car Rental Duration: % Breakdown 2004-2008

Table 65 Time of Booking: % Breakdown 2005-2008

Table 66 Car Rental Sales: Internet Transaction Value 2003-2008

Table 67 Car Rental Market Shares 2004-2008

Table 68 Car Rental National Brand Owners by Key Performance Indicators 2008

Table 69 Forecast Car Rental Sales by Sector and Location: Value 2008-2013

Table 70 Forecast Car Rental Sales by Sector: Internet Transaction Value 2008-2013

TRAVEL RETAIL IN SAUDI ARABIA

HEADLINES

TRENDS

COMPETITIVE LANDSCAPE

GROWTH SECTORS

PROSPECTS

SECTOR DATA

Table 71 Travel Retail Outlets by Sector: Units 2003-2008

Table 72 Travel Retail Products Sales: Value 2003-2008

Table 73 Travel Retail Sales by Destination: % Value Breakdown 2003-2008

Table 74 Travel Retail Online Sales by Sector: Internet Transaction Value 2003-2008

Table 75 Travel Retail Products Market Shares 2004-2008

Table 76 Travel Retail Products National Brand Owners by Key Performance Indicators 2008

Table 77 Forecast Travel Retail Outlets by Sector: Units 2008-2013

Table 78 Forecast Travel Retail Products Sales: Value 2008-2013

Table 79 Forecast Travel Retail Online Sales by Sector: Internet Transaction Value 2008-2013

TOURIST ATTRACTIONS IN SAUDI ARABIA

HEADLINES

TRENDS

COMPETITIVE LANDSCAPE

PROSPECTS

SECTOR DATA

Table 80 Tourist Attractions Sales by Sector: Value 2003-2008

Table 81 Tourist Attractions Visitors by Sector: 2003-2008

Table 82 Tourist Attractions Sales: Internet Transaction Value 2003-2008

Table 83 Leading Tourist Attractions by Visitors 2003-2008

Table 84 Forecast Tourist Attractions Sales by Sector: Value 2008-2013

Table 85 Forecast Tourist Attractions Visitors by Sector: 2008-2013

Table 86 Forecast Tourist Attractions Sales: Internet Transaction Value 2008-2013

HEALTH & WELLNESS TOURISM IN SAUDI ARABIA

HEADLINES

TRENDS

PROSPECTS

SECTOR DATA

Table 87 Number of Hotel/Resort Spas: Units 2003-2008

Table 88 Health & Wellness Tourism Sales by Type: Value 2003-2008

Table 89 Spa Consumer Markets: Domestic Tourism 2005-2008

Table 90 Spa Consumer Markets: Arrivals 2005-2008

Table 91 Forecast Health & Wellness Tourism Sales by Type: Value 2008-2013

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