Developed by The Red Sea Development Company (TRSDC), the Red Sea Project, is a luxury tourism destination located along 28,000 km2 of Saudi Arabia’s west coast. The development, due for completion in 2030, will consist of 50 hotels and around 1,300 residential properties across 22 islands and six inland sites.
The ACWA Power consortium has been awarded a public-private partnership (PPP) contract to design, build and operate the renewable power, potable water, wastewater treatment, solid waste management and district cooling for the 16 hotels, international airport and infrastructure that make up phase one of the project.
Energy will be generated via solar panels and wind turbines to meet an initial demand of 210MW with the ability to expand in line with the development.
In total, development is expected to generate up to 650,000 MWh of 100% renewable energy, which TRSDC believes will save 500,000 tonnes of CO2 emissions yearly. It will also have the world’s largest battery storage facility of 1000MWh, allowing the resort to remain entirely off-grid 24/7.
Three seawater reverse osmosis (SWRO) plants will also be constructed to provide clean drinking water, plus a solid waste management centre and a sewage treatment plant that will enable new wetland habitats to be created to supplement irrigation water for landscaping.
TRSDC chairman, John Pagano said:
“This is a pivotal moment for us as we seek to build a new kind of tourism destination in Saudi Arabia, aligned with Vision 2030. We’re committed to pushing the boundaries of what it means to be sustainable and investing heavily in renewables is helping us to set new global standards in regenerative tourism”.
ACWA Power chairman, Mohammad Abunayyan said: “Powering the Red Sea Project and all utility services exclusively with clean, renewable energy sources is a commendable strategy, and enabling it through a public-private partnership contract underlines TRSDC’s groundbreaking approach which sets a new benchmark in sustainability and environmental stewardship.”
Massive investments worth over $810 billion in mega tourism projects across Saudi Arabia is expected to transform the kingdom into one of the largest leisure tourism sectors in the world between now and 2030, according to a research conducted by the Middle East and North Africa Leisure Attractions Council (Menalac), the leisure and entertainment industry council representing the Middle East’s dynamic leisure attractions sector. Here is Trade Arabia‘s from Riyadh.
Saudi to be among world’s big leisure tourism hubs by 2030
These include the $500 billion mega development Neom which leads the list of the mega projects followed by the $10 billion Qiddiyah Project, spread across 334 sq km in Riyadh.
The third project is Amaala, or the Saudi Riviera, located in the northern region with an area of 3,800 sq km, and developing islands in the Red Sea with a total area of 34,000 sq km.
Once completed, it will deliver a futuristic mega sustainable city.
According to the report, Saudi Arabia is looking to more than double its investment in recreation from the current 2.9% to 6% by 2030.
Mishal Al Hokair, Board Member of Menalac, said: “Saudi Arabia has an array of dynamic plans and attractions planned over the next few years, each of which will add to the fast growing Leisure and Entertainment sector.”
“Its Vision 2030 will change the entire economic and tourism landscape of not only Saudi Arabia, but the entire Middle East region, that will have a massive positive knock-on effect on the leisure tourism industry,” noted Al Hokair.
“Once the current Covid-19 situation improves, the investment and development in the Saudi Arabia’s tourism sector will bring massive opportunities for the industry. It is time for everyone to prepare for the next big growth,” he added.
Saudi Commission for Tourism and National Heritage (SCTH), the country’s tourism regulator, said the mega tourism projects being developed by Public Investment Fund will be spread over an area of more than 64,634 sq km, with a value exceeding $810 billion.
In addition, SCTH will be developing museums in various Saudi regions, and preserving Saudi heritage with a cost of more than $1.3 billion.
Saudi Arabia foresees that the national tourism will significantly contribute to the gross domestic product as the most growing non-oil economic sector. The tourism revenues increased to more than SR193 billion ($51 billion) in 2017, and to more than SR211 billion ($56 billion) in 2018, SCTH said in a report.
In 2017, the kingdom’s tourism sector had attracted $28.6 billion, more than six times the world average in tourism capital investment, it added.
Despite the current situation with regards to Covid-19, Saudi Arabia is pushing ahead with construction of some of these massive projects. A number of construction contracts have recently been awarded following the partial re-opening of the economy after the lockdown.
Red Sea Development Company has recently awarded construction contracts worth $1 billion while Neom has awarded Bechtel and Aecom programme management contract.
Changes and growth in Saudi tourism landscape will help leisure attractions operators in the Middle East and North African (Mena) countries. The recent reopening of the land borders by Saudi Authorities will help boost regional tourism in the GCC region.
SCTH plans to facilitate investment SR171.05 billion that will boost the tourism industry capacity and the number of hotel rooms to 621,600 rooms and boost the tourism sector’s contribution to the GDP by 3.1 per cent, and increase direct employment to 1.2 million jobs.
Prakash Vivekanand, the board member of Menalac, said: “The latest news from Saudi Arabia is very encouraging. The government wants to push ahead with the mega projects that will not only boost the country’s gross domestic product (GDP) but also the tourism sector.”
It will create massive opportunities for all the players in the leisure attractions business and we could count on an exciting future for the industry in the Mena region.”
According to Saudi Arabia’s General Investment Authority (Sagia), the country wants to increase investment in recreational facilities to 6 per cent from the current 2.9 per cent per annum – more than double the current level, as part of Saudi Vision 2030.
“In 2017, the Saudi tourism sector had attracted investment of SR172 billion ($28.6 billion), which was six times the world average in tourism capital investments,” according to a report by Sagia. “Investments are expected to rise 5.5 per cent per annum over the next ten years to SR200 billion ($54 billion) per annum.”
Rosa Tahmaseb, Secretary General of Menalac, said: “The leisure attractions industry in the Mena region is upbeat with the new opportunities that are arising in Saudi Arabia.”
“We see massive opportunities for our industry being created by more than a $1 trillion investment in the Saudi economy between now and 2030,” she noted.
Tahmaseb called upon all leisure industry stakeholders, both suppliers and operators to explore these opportunities and ascertain how they can take a leading role in helping Saudi Arabia develop its leisure facilities in the coming decade.
According to her, tourism and entertainment are an essential part of the Saudi Vision 2030 which is aimed at diversifying the Saudi economy by reducing its dependence on oil.
Saudi Arabia aims to develop versatile tourism destinations, which include several coastal sites, marvellous islands and distinguished heritage areas, all of which will require a high level of expertise, support and the most innovative attractions, technology and experiences to ensure the kingdom becomes one of the top tourist and entertainment destinations in the Middle East within the next few years.
“Despite the short-term setback created by the Covid-19 pandemic, the long-term prospects for our industry remain bright. One example of this can be seen in the dynamic projects planned for Saudi Arabia,” she added.-TradeArabia News Service
Doha’s diverse hotel scene will keep expanding with growth driven by large international groups, according to our analysis of the TOPHOTELPROJECTS construction database.
Our research indicates that Doha’s hotel market will grow by 37 projects and 10,885 rooms in the next few years.
We take a closer look at the development pipeline and check out a few of the most hotly anticipated openings.
Doha braces itself for a busy end to 2020
15 hotels are slated to open in Doha in 2020, adding 3,490 rooms to the city’s inventory. Nine of these hotels are already in the pre-opening phase, which means it’s quite likely that most projects will finish and launch on time.
Another 12 hotels are planned for 2021, bringing 3,540 additional rooms. Ten new properties with 3,855 rooms are signed off for 2022 and beyond.
The split between four- and five-star hotels is a dead heat in terms of the number of new properties. However, the 19 planned four-star hotels will have a total of 4,798 rooms, while the 18 new five-star properties will have 6,087 rooms combined.
International hotel groups dominate in Doha
French giant Accor leads the list of most active hotel groups in Doha with five projects on the cards, spanning 1,925 rooms.
Doha already boasts many exciting properties, but several hotly anticipated openings look set to give them a real run for their money in the coming years.
After having its opening delayed by over two years, Accor’s first Majlis Grand Mercure Hotel is now due to start welcoming guests in late 2020. The 238-key hotel will be housed in a 41-storey development and feature extensive business, sports and leisure facilities, as well as nine food and beverage outlets.
JW Marriott West Bay is another delayed yet extraordinary hotel that will soon open its doors. From Q2 2021, the 297-room hotel will start trading from a soaring 53-storey tower. Here, a cantilevered swimming pool on the 30th floor will offer stunning views of the city and ocean. Guests will also be able to indulge in the extensive food and beverage offering, state-of-the-art sports and wellness facilities, and perfect location on the Corniche.
Meanwhile, one of Hilton’s most familiar brands will soon debut in Qatar with the opening of Hilton Garden Inn Doha Al Sadd. The 225-room property will launch by late 2020 and welcome guests to a great location in the heart of the city’s commercial district. It will feature three restaurants, a health club with an outdoor pool, and a selection of meeting rooms.
We are already beginning to rethink the city and housing to respond as best as possible to future health crises and other natural disasters (earthquakes, flooding, Tsunami) or accidental (fire, carbonization, nuclear threats, etc.). Transportation will evolve by adapting to the new rules of distancing. Walkers and cyclists will be encouraged through adequate infrastructure per sustainable regulations. The famous concept of urban intensification will be forgotten because of unforeseen anachronism. In short, cities will have to evolve considering the new climate and health situation requirements. Sustainability would be a must in All Regions as it is clear that all future development will surely come at the expense of the planet because of the need for urban areas will double in view of the sine-qua-none condition of social distancing. In the hope that the urban will cease to overflow into the rural, questioning the fragile balance between the city and the countryside, life carries on. Other times, other manners and despite that, touring towns, villages and countryside will have to go on so as to sustain parts if not all economies of all nations. The word is therefore the time has come to restart tourism! The World Tourism Organization, a United Nations Specialised Agency produced the following press release for this purpose. Marking the World Environment Day, the One Planet Sustainable Tourism Programme has announced its new vision for global tourism: growing better, stronger, and balancing the needs of people, planet, and prosperity.The quasi unanimous agreement of many
At both the local and the global level, the crisis we have faced up to together has shown the importance of making the right decisions at the right time.
We do so on the back of many weeks of hard work and commitment. This crisis has affected us all. Many, at every level of the sector, have made sacrifices, personally or professionally. But in the spirit of solidarity that defines tourism, we united under UNWTO’s leadership to share our expertise and abilities. Together, we are stronger, and this cooperation will be essential as we move onto the next stage.
Our research shows that several countries around the world are starting to ease restrictions on travel. At the same time, governments and the private sector are working together to restore confidence build and trust – essential foundations for recovery.
In the first stage of this crisis, UNWTO united tourism to assess the likely impact of COVID-19, mitigate the damage to economies, and safeguard jobs and businesses.
Now, as we change gears together, UNWTO is taking the lead again.
At the same time, we continue to promote innovation and sustainability. These must no longer be small parts of our sector, but instead must be at the heart of everything we do. This way, as we restart tourism, we can build a sector that works for people and planet.
Governments and businesses are increasingly on our side as we work to build this new tourism.
UNWTO is also working to make sure that tourists too share in this vision. Our partnership with CNN International will take our positive message to millions of people around the world. The #TravelTomorrow message, embraced by so many, is one of responsibility, hope and determination.
And now, as we do get ready to travel again, we remind tourists of the positive difference their choices can make.
Our actions can be meaningful and highlight the road ahead, travelling again to restart tourism.
The Saudi Entertainment Ventures Company (Seven), established by the Public Investment Fund (PIF) and mandated to invest, develop and operate entertainment destinations in Saudi Arabia, has announced the expansion of new entertainment complexes to prime locations across the kingdom.
RIYADH, These will delight residents and tourists alike and contribute to positioning Saudi Arabia as a hub for entertainment and leisure, said a statement from Seven.
The entertainment complexes will meet the fast-growing tourism sector and contribute to realising the goals outlined in Saudi Vision 2030, it stated.
These projects are being developed in key strategic geographic locations, providing large resident populations with innovative leisure choices that will appeal to all the family. Each complex will feature several entertainment and leisure choices including cinemas, play areas, rides, food and beverage (F&B) outlets, attractions and more, it added.
Chairman Abdullah Al Dawood said Seven is building the entertainment ecosystem of the kingdom, having already opened the first cinema in Saudi Arabia in 35 years.
“We have a clearly structured development plan to build 20 entertainment destinations, 50 cinemas and two large theme parks in prime locations across the kingdom,” stated Al Dawood.
In Jeddah, Seven will develop several entertainment complexes adding to the leisure choices for over four million residents and visitors.
With entertainment complexes coming up by the azure waters of the Red Sea as well as in areas that are popular among residents, the leisure ecosystem of Jeddah will witness a dramatic transformation.
In line with the vision of the leadership to offer more attractions that add to the quality of life of residents and visitors to the holy cities of Makkah and Madinah, Seven will open new entertainment complexes.
Another addition is in Taif, the fifth biggest city in Saudi Arabia and the unofficial ‘summer capital’, where the cool climes draw people to its location on the slopes of the Sarawat Mountains.
Known as the spring by the sea for its popularity among tourists as a scuba-diving destination with white sandy shores, Yanbu is another strategic location. With easy connectivity from Riyadh and Dammam, Al-Kharj will also feature a Seven entertainment complex.
Another area which will feature a project by Seven will be Buraydah, located in the centre of Saudi Arabia, said the statement from Seven.
Abha and Khamis, set in the Asir Mountains and known for equitable all-year weather, will also have new entertainment complexes by Seven, adding to their touristic value.
The port city of Jazan by the Red Sea, serving as a large agricultural heartland of the kingdom, features several ambitious infrastructure projects and is another natural choice for Seven – along with Tabuk, one of the historic sites, rich in rock art, archeological sites, castles and mosques.
Adding to the entertainment ecosystem of the capital city of Riyadh is the development of the entertainment complex at Al Hamra that will serve the densely populated neighbourhoods in the north-east of Riyadh.
At the intersection of King Abdullah Road and East Ring Road, the project will serve over 2.5 million people within a radius of a 30-minute drive. Another exciting upcoming addition to Riyadh is the entertainment complex at Al Nahda, with the Nahda Park Metro Station just a few metres away. Announced last year, work on these projects is progressing as per schedule.
Further adding to the communities of Dammam and Al Khobar, which serve as vital hubs for several key industries and global businesses, Seven is bringing waterfront attractions that will create unforgettable moments of joyful entertainment for everyone. Announced last year, these projects will also offer a range of entertainment choices for residents and visitors.
“We are committed to realising the goals of Saudi Vision 2030 to accelerate the creation of world-class entertainment assets in the Kingdom that support economic diversification, create new jobs, and contribute to socio-economic progress. Our complexes will position the kingdom as an entertainment, culture and tourism hub of the region,” he stated.
“At Seven, we believe in promoting and creating opportunities for the private sector to thrive in the fast-evolving entertainment landscape of the kingdom,” noted Al Dawood.
“We are inviting the most ambitious and creative business partners and vendors to join us in our remarkable step forward to shape the entertainment landscape of the Kingdom,” he added.
HOTEL BUSINESS on February 17, 2020, informs that MENA to see $23B in Hotel Building by 2023, mostly in the Gulf region. A region that still knows a significant construction boom despite inevitable volatility in its primary revenue would be hosting crowds of visitors soon to two major international events. These are the International Exhibition of 2020 and the Football World Cup 2022 in Qatar. The other regions of the MENA, whether North African or of the Levant that mostly preoccupied with their respective geostrategic concerns, have smaller demand for hotels buildings.
INTERNATIONAL REPORT—The Arabian Hotel Investment Conference (AHIC) 2020 has released the third annual AHIC Hotel Investment Forecast, which reveals that more than $23 billion worth of hotel construction contracts are scheduled to be awarded in the Middle East and North Africa (MENA) between now and 2023.
According to research conducted by regional project tracking service MEED Projects in Q4 2019, the hotel development sector will be most active in Oman, Egypt, UAE and Saudi Arabia, making these the markets to watch in 2020.
“On the back of the more than 700 new hotels worth in excess of $53 billion having been built over the past seven years, the Middle East is rightly viewed as a high-growth region for tourism,” said Ed James, director of content and analysis, MEED Projects. “Growing economies, enhanced infrastructure and the opening up of the sector have acted as catalysts for development.”
He continued, “In terms of the hotel pipeline, Saudi Arabia is the leading future market with just under $9 billion worth of projects planned to be awarded over the next four years. This includes a minimum of 21,500 rooms, across 36 individual hotel, resorts and master-planned tourist destinations. The Kingdom has made tourism and the opening up of its cultural heritage and pristine Red Sea coastline key components of its 2030 Vision. Self-styled ‘gigaprojects’ like The Red Sea Project, Amaala, Neom and the Qiddiya entertainment hub are set to transform Saudi Arabia and the region over the next few years.”
The UAE is in second place, with $7.6 billion worth of hotel construction contracts on the four-year horizon. Oman has hotel developments worth more than $2 billion in the pipeline, while Egypt has some $1.9 billion worth of projects set to be awarded by 2023.
The levels of investment revealed by the AHIC Hotel Investment Forecast over the next four years are testament to an incredibly buoyant market, according to forecasters. “New hotel resorts like Jebel Sifah and the St. Regis Muscat in Oman, the Ritz-Carlton in Sharm el-Sheikh and the MGM Resort and Bellagio Hotel in Dubai are set to continue to make the Middle East one of the most vibrant and diverse tourism destinations in the world,” said James.
The regional hotel pipeline and the future outlook for hotel investment in the Middle East will be discussed in depth at the 16th edition of AHIC, which returns to Madinat Jumeirah in Dubai from April 14-16.
“The AHIC Hotel Investment Forecast is an incredibly valuable piece of research that clearly demonstrates that the Middle East still has so much to offer when it comes to future hotel expansion and investment,” said Jonathan Worsley, chairman, Bench Events, and founder, AHIC. “We’re especially excited to see markets such as Oman and Egypt, which offer incredibly rich and diverse tourism landscapes, return to the forefront of development in the region.”
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