INFLUX OF VISITORS, ALTHOUGH THE CITY REMAINS A MYSTERY TO GLOBAL LEISURE TRAVELLERS.
Today, oil resources make up 39 percent of the Saudi GDP, with tourism accounting for less than three percent.
Yet, in line with the goals of the Kingdom’s grand plan, known as Saudi Vision 2030, ratios are expected to gradually shift as tourism assumes a more significant role in the country’s socio-economic development with historic destinations, such as Medina, expected to benefit from growing demand.
The year 2015 marked a major leap in this regard with the launch of the second Holy City’s Prince Muhammad Bin Abdulaziz International Airport.
Heralding a new era of public and private partnership in Saudi Arabia’s aviation industry, the four million squaremetre project represents the first airfield constructed and operated entirely by the private sector in the Kingdom.
Since the initial upgrade of the entry point into an international hub over a decade ago, the airport, which has 72 check-in counters in the main terminal, has witnessed major increases in traffic, with the Hajj season being especially busy.
As Ashraf Madkour, general manager, Pullman Zamzam Madina, reaffirmed, the launch of the airport has helped boost arrivals to the destination.
“According to [official figures], air traffic has grown more than eight percent over 2015. This is a good and healthy sign for everyone,” claimed Madkour.
Improved transportation links and infrastructure coupled with a plethora of initiatives have generated a renewed interest in Medina with the past months delivering particularly strong figures.
“In fact, the number of travellers increased due to the increment of visas issued this year,” explained Mohamed Marzouk, manager, operations, Madinah Marriott.
“This has [had] a good impact on our individual traveller segment, especially during the Ramadan season.”
As Marzouk revealed, propelled by strong demand, this year’s Holy Month delivered above-expectations results in terms of both revenue as well as business mix.
The main celebratory periods of the Islamic calendar indeed remain the busiest times of the year for hoteliers in Medina, with religious travellers making up 95 percent of the total clientele at Pullman Zamzam Madina.
“The property has been tailor-made to ensure that the pilgrims’ journey of the lifetime is made even more special,” demonstrated the sector’s significance Madkour, pinpointing how the Hajj period signifies a high season for all hotels and accommodation establishments in the city, especially for newly-opened properties, such as AccorHotels’ latest Saudi project, which can leverage the strong influx of pilgrims to exploit available business opportunities and ensure a fruitful first year.
As Madkour explained, making the most of these high-demand seasons is crucial in crowded marketplaces like Medina. Underscoring his statement, he revealed declines in the three key performance metrics, with occupancy levels and average daily rate both dropping, leading to a double-digit slump in RevPAR.
To ensure year-round business, hoteliers are looking to widen their business mix.
“The local corporate market has [accounted for] five percent of our total business until now, however, our long-term plan is to enhance its market share,” divulged Madkour.
Taking Medina’s tourism industry to the next level is also high on the agenda for the Saudi Commission for Tourism & National Heritage (SCTH), which plans to open new museums and visitor centres in the city.
Within the framework of the Live Saudi Arabia initiative, the organisation has recently also taken 82 students from Riyadh for an excursion to the destination with visits to major touristic and pilgrim sites.
“Tourism in Saudi Arabia is one of the biggest contributors to the GDP and the long-term vision of the Kingdom is to enhance it more and more,” underlined Madkour, referring to the expansion project of the Al-Masjid an-Nabawi Mosque as a clear evidence of this.
As Marzouk also noted, to accelerate the tourism sector’s development in Medina, several projects are underway, such as the Haramain High Speed Rail Project, also known as the Western Railway, which would link Medina to Mecca through Jeddah, giving a major boost to the destination’s tourism sector.
In addition, as Marzouk further noted, the tourism authority’s Made in Madinah initiative allows visitors to take home with them souvenirs and products that are 100 percent locally produced from local materials, making a visit to the destination, often referred to as ‘the radiant city’, even more memorable.
