THE REGION’S MOST SIGNIFICANT CENTRES FOR PETROCHEMICAL GIANTS AND WEEKEND GETAWAYS.
“Al Khobar city emerged during the last century as the business hub and residential city for the contractors and work force of leading oil and gas company, Saudi Aramco,” explained Basel Talal, district director, Saudi Arabia, The Rezidor Hotel Group, saying that up until the last decade, only a few international hotels operated in the market along with some local inns.
In close proximity to Dammam and nevertheless to the causeway to Bahrain, Al Khobar enjoys a strategic location, making it a top choice for both domestic as well as GCC travel, pinpointed Fares Yactine, general manager, Sofitel Al Khobar The Corniche.
“[Besides] that, it has long been a preferred destination for a lot of expatriates working in oil and gas companies operating in the Eastern Province […],” added Yactine, noting that the presence of multinational companies in the area also helps generate traffic, triggering the further enhancement of the destination’s tourist product.
Despite the gradual infrastructural and service improvements, the hospitality sector changed little up until 10 years ago when globally known four- and five-star properties started to appear on the horizon, noted Talal.
Nowadays, hospitality giants from Starwood Hotels & Resorts Worldwide to InterContinental Hotels Group, Hilton Worldwide and Carlson Rezidor Hotel Group all have presence in the market. For instance, The Rezidor Hotel Group alone operates 312 rooms across three properties in the area.
“The reason behind this development is the increase in housing demand [...] along with the ever-growing internal interest in leisure destinations from central province citizens and residents from the eastern part of the country,” elaborated Talal.
THE SAUDI GATEWAY
Yet, tourism remains largely driven by local demand, Talal pinpointed, further revealing that during peak seasons, last-minute bookings, even from third party engines, and walk-in guests can pose a much welcomed challenge, demonstrating the destination’s rising popularity.
Corroborating Talal’s words, Yactine said, “Today, if we look at the feeder market, we can observe that mainly it is internal tourism coming from Riyadh […]. Activities created by the municipality in addition to greater supply of hotels and restaurants have helped attract a larger number of visitors.”
As Talal further highlighted, there are also several international sources linked to the destination due to the fact that the region is a tax free market platform driven by oil and gas as well as other business segments.
Countries such as Bahrain, Qatar and Kuwait are all within a four-hour-drive radius, offering immense potential for the enrichment of Al Khobar’s tourist product, pinpointed Yactine.
Talal identified the GCC among the most prominent feeder markets alongside countries with strong industrial background, such as the UK, France, Germany and the US.
Yet, the recent drop in oil prices prompted businesses to look for alternative areas those being China and Russia among others.
As Yactine suggested, easing visa restrictions for non-GCC citizens would help enormously in luring more visitors.
Over the coming years, Al Khobar is set to witness major developments with Talal referring to the announced upgrade of the railway connection to Riyadh, the enlarging of the causeway to Bahrain and new beach resort facilities, among others, as well as the arrival of more hoteliers.
UAE-based One to One Hotels & Resorts recently entered into a management agreement to operate three properties in Dammam-Khobar, adding a total of 165 keys to its portfolio.
Philippe Harb, CEO, One to One Hotels & Resorts, described the destination as one of the fastest growing tourist attractions in the Kingdom, hence the decision to run three boutique hotels.
Another newcomer is the five-star, 218-unit Kempinski Al Othman Hotel, Al Khobar, which is scheduled to welcome its first guests later this year as Mohamed Fadi, director of sales, Kempinski Al Othman Hotel, Al Khobar, revealed.
“The city is preferred by some of the most important regional and international companies,” reaffirmed Fadi, adding that the destination has also long been deemed as the city of shopkeepers and merchants with a number of shopping and lifestyle centres, thus the company’s decision to invest here.
Speaking about the future, Talal concluded, “Overall, the country is undertaking a development path towards tourism modernity and Al Khobar city along with Dammam and Dhahran remain an ideal location for touristic investments especially that this part of the country remains relatively modern and new compared to other provinces.”
