Travel And Tourism in 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
Why buy this report
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive environment
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