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In recent years, Saudi Arabia has emerged as a unique travel destination on the global stage. Visitors have a wealth of experiences to explore, whether delving into the kingdom’s religious and ancient history, admiring the natural wonders, or taking part in exciting events across the arts, sports, business and technology. Last year, Saudi Arabia’s Ministry of Tourism reported that a total of 93.5 million domestic and international tourists spent more than $49 billion in the kingdom, with tourism accounting for 3.2 percent of GDP.
This paints a picture of great opportunity for the hospitality industry – with travelers from all backgrounds eager to see what the country has to offer. For Saudis, it’s a chance to see their country’s magnificent diversity in all its glory. For international visitors, this may be the first time to discover a rich culture. While hotel room development is declining in countries across Europe, Asia and the Americas, the Gulf countries, especially Saudi Arabia and the UAE, are bucking the trend. The region’s record for the largest hotel supply pipeline currently belongs to Saudi Arabia, which is expected to build 310,000 hotel rooms by 2030.
With this in mind, the luxury hospitality industry can play its own important role in the ecosystem. These businesses are not just offering bespoke service and ultimate comfort, the essence of the luxury hotel experience is giving guests something they have never experienced before. This has different interpretations ranging from remote sites to a health-oriented approach.
For us at Boutique Group, our distinctive quality is our deep and tangible connection to Saudi Arabia’s heritage and history by transforming Saudi Arabian palaces into spaces of luxury and leisure. The country has no shortage of architectural gems, from centuries-old buildings to skyscrapers, but several sites in Saudi Arabia’s modern history tell the story of its progress. For example, the Red Palace, built in 1943, was a gift from the kingdom’s founding father to his son. Also in the Diplomatic Quarter is the Tuwaiq Palace. Built in 1985, the project was designed by Frei Otto and Omraia and won the Aga Khan Award for Architecture in 1998.
The Boutique Group has three palaces under development, with several more under consideration. In previous years, the palaces have been closed to the public, but soon they will open their doors, allowing Saudi visitors to see their own history up close, allowing visitors to discover the kingdom’s culture and history in a whole new way. We work closely with the Saudi Ministry of Culture to individually inspect these destinations, adding diversity to our guests and staying true to our commitment to Saudi hospitality.
While we see our hotels as a bridge to Saudi heritage and culture, we also understand the importance of luxury hotels to Vision 2030 and the kingdom’s transition to a more diverse economy. The Ministry of Tourism estimates that by 2030, the investment opportunity in the tourism industry will reach US$6 trillion, which means economic growth, business income and job prospects.
Currently, Saudi Arabia trains 100,000 people a year to work in the tourism industry, including young Saudi men and women. That’s the huge impact of tourism and hospitality. In fact, a hotel is not just a space for accommodation, it represents a company, it represents a person, and it belongs to an ecosystem that promotes growth, development, and progress.
about the author
Mark DeCocinis is the Chief Executive Officer of Boutique Group. He was joined by other panelists, Accor Luxury & Lifestyle Chief Development Officer Agnès Roquefort and CEO Officer Neil Jacobs delivered a speech by Six Senses Officer. The session was moderated by Ruben Toral, Director of Health and Wellness, QUO Global, and took place on the summit stage at FHS Saudi Arabia.
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