Jeddah hotels record 80% occupancy in May, its highest since 2016  

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. (Shutterstock)
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Updated 14 June 2023
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Jeddah hotels record 80% occupancy in May, its highest since 2016  

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.  


Saudia secures 2nd place worldwide for punctual flights in 2025

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Saudia secures 2nd place worldwide for punctual flights in 2025

JEDDAH: Saudi airline Saudia ranked second globally in on-time arrival performance for 2025, according to independent aviation analytics provider Cirium.

The Kingdom’s national flag carrier posted an on-time arrival rate of 86.53 percent across 202,864 flights operated throughout its network, which covers more than 100 destinations across four continents, just behind Mexico’s Aeromexico, which led the ranking with 90.02 percent punctuality on 188,859 flights.

Scandinavian Airlines, the flag carrier of Denmark, Norway, and Sweden, was placed third with Brazil’s Azul coming fourth, recording 86.09 percent and 85.18 percent on-time arrivals, respectively.

The ranking is testament to the strength of the Kingdom’s national tourism strategy, which aims to attract 150 million visitors by 2030 and increase the sector’s contribution to the nation’s gross domestic product from 6 percent to 10 percent.

Ibrahim Al-Omar, director general of Saudia Group, said: “This achievement reflects the collective efforts of our teams across planning, operations, and flight management.”

He added that operational efficiency remains a core pillar of Saudia’s strategic plan and is directly linked to the guest experience, with time being a critical element at every stage of the journey.

“Our ability to deliver on this is enabled by strong integration among Saudia Group companies, alongside close coordination with key partners in the Kingdom’s aviation sector,” he said.

In 2024, Saudia topped the list of global airlines in departure on-time performance with a punctuality rate of 88.82 percent, according to new data from Cirium. It also ranked second globally in on-time arrival performance, achieving a rate of 86.35 percent.

Saudia is set for a major fleet expansion, with 116 new aircraft scheduled to join its current fleet of 149. This growth will enable higher flight frequencies, increased seating capacity on existing routes, and the launch of new international destinations.