RIYADH: Jeddah hotels’ occupancy level in May reached close to 80 percent, the highest monthly rate since 2016, as Saudi Arabia pushes ahead with its goal to become a regional business and trading hub.
The spike in hotel bookings was primarily driven by the Arab League Summit, which was held in Jeddah on May 19, according to global data benchmarking firm STR.
Its data showed that the Kingdom’s second-largest city reported its highest occupancy level on May 17 at 90.6 percent and the peak average room rate of SR1,440.69 ($384.14) on May 18, the night before the Arab League Summit.
The port city also recorded a 21.9 percent increase in occupancy rate in May compared to the same month last year, with the average daily rate touching SR924.32 and revenue per available room reaching SR738.80.
“While room rates were lower than the month prior, Jeddah’s RevPAR was its highest since September 2019,” the report stated.
Of all the industries impacted by the universal pandemic, the hospitality sector was the worst hit in Saudi Arabia and the Gulf, as in all other territories.
In 2020, hotel occupancy rates declined to 49 percent in Riyadh from 60 percent in 2019. According to professional services firm Deloitte, Makkah declined from 61 percent to 25 percent and Jeddah from 58 percent to 37 percent during that period.
However, the pace of growth quickly gained steam after Saudi Arabia focused on tourism as part of its recovery plan after COVID-19.
This comes as the Kingdom is working to attract 100 million annual visitors within seven years as part of its Vision 2030 pledge.
Speaking at the World Travel and Tourism Council Global Summit in Riyadh last November, Saudi Minister of Tourism Ahmed Al-Khateeb announced that the Kingdom is offering investment opportunities worth $6 trillion in the travel and tourism sector through 2030.
