Saudi Arabia’s Tourism Development Fund partners with Deutsche Hospitality
Saudi Arabia’s Tourism Development Fund and Deutsche Hospitality, the umbrella brand of German hospitality company Steigenberger Hotels, have signed a preliminary agreement to develop and operate Steigenberger Porsche Design Hotels projects in the kingdom.
The partnership includes the right to exclusively deploy the first Steigenberger Porsche Design Hotels project in the Middle East, which will provide personalized experiences for guests in the luxury hospitality segment, the fund said in a statement.
The agreement was signed by Qusai Al Fakhri, Managing Director of TDF, and Marcus Bernhardt, Managing Director of Deutsche Hospitality, in the presence of Ahmed Al Khateeb, Saudi Minister of Tourism and Chairman of the Board of Directors of TDF.
“Thanks to this collaboration – which will result in unique hospitality offers – we continue to improve the kingdom’s tourist offer within the framework of the National Tourism Strategy,” said Mr. Al Fakhri.
Saudi Arabia – on a mission to diversify its economy away from oil – continued its reform measures in 2021 as the kingdom seeks to position itself as a dynamic destination for business, tourism and culture.
Tourism is one of the key pillars of the kingdom’s Vision 2030 transformation program, which aims to diversify the economy and reduce its dependence on oil.
Saudi Arabia plans to invest more than $1 trillion in the tourism sector over the next 10 years, Al Khateeb said in October.
The kingdom aims to increase the tourism sector’s contribution to the economy to more than 10% of its gross domestic product by 2030, from around 3% currently.
Saudi Arabia’s hotel segment revenue is expected to reach $2.16 billion in 2022, 44% more than last year and almost double $1.09 billion in 2020, according to data from Statista. It is expected to grow at a compound annual rate of 8.51% and reach approximately $3 billion by 2026.
Three major hotels are set to open in the kingdom this year, including Nobu Hotel Riyadh, Banyan Tree AlUla and The Jeddah Edition.
Last month, the kingdom set up a new body to regulate tourism activity along the Red Sea coast and protect its environment, streamlining regulations to encourage investment and support small and medium-sized businesses. involved in marine recreational tourism activities along the coast.
Saudi Arabia is also stepping up flights to make the kingdom more accessible. Last November, Riyadh-based low-cost airline flynas launched direct flights from the United Arab Emirates to the historic destination of AlUla, dubbed “the world’s largest living museum”.
The partnership between TDF and Deutsche Hospitality plans to meet the “sophisticated needs” of the Saudi market and create a unique experience in the kingdom’s luxury hotel segment, Bernhardt said.
“A Porsche Design Hotel in Saudi Arabia reflects our commitment to the region and our support for the kingdom as a leading global tourist destination,” he added.
The TDF plays a vital role in promoting the development of the tourism sector in Saudi Arabia by enabling private investors to participate, as well as providing support to SMEs and large institutions, ranging from planning to supporting various government agencies. related to tourism.
The fund offers a wide range of bespoke solutions tailored to investors’ needs, including direct financing, bank guarantees and co-financing with lenders.
Frankfurt-based Deutsche Hospitality, one of Europe’s largest hotel companies, has a portfolio of eight brands operating in more than 160 hotels worldwide. Its Steigenberger Porsche Design Hotels brand is its flagship in the luxury lifestyle segment.
Updated: January 14, 2022, 2:43 p.m.