Saudi Arabia Joins Iran, Oman in Touting Tourism Vision

DUBAI, United Arab Emirates—After Dubai announced its 2020 plan to host 20 million visitors in time for the World Expo, several Middle Eastern countries eager to capture a new influx of middle-class tourists used the Arabian Hotel Investment Conference to declare their intent to follow Dubai’s lead.

Buzzwords like excitement, optimism and connectivity filled the air. Oman was first up, announcing its Vision 2040 on Tuesday. Saudi Arabia shared its Vision 2030 plan Wednesday which will ease visas applications and drive both leisure and religious tourism, the full text of which can be read here. AHIC attendees from Saudi Arabia said the transformation of the oil price and the new generation’s shifting mindset are behind these changes.

With their development efforts, the two countries join Iran, which last month was the subject of one of the more popular panels at the International Hotel Investment Forum in Berlin.

Photo of the day

Geoff Ballotti, president and CEO of Wyndham Hotel Group, said during a panel titled “Merger and acquisitions activity” that while “consolidation has to make business sense and result in meaningful synergies, it is important also to have common sense and strategy.” (Photo: Terence Baker)

Bonus photo of the day

Attendees wait close to the door of the main AHIC hall to get good seats for the video link conversation with Arne Sorenson, president and CEO of Marriott International (see quote and tweet below). (Photo: Terence Baker)

Editors’ takeaway
The region does have challenges, especially for destinations that are heavily dependent on oil revenue, but there is continued optimism to be seen. In Dubai itself, where comments have been made over falling year-over-year ADR numbers, owners and operators remain positive. Joe Sita, CEO of hotel owner IFA Hotel Investments, speaking at a panel titled “Mergers and acquisitions activity,” said, “It has the highest (revenue per available room) in the world right now.”

As mentioned often in the first day of the conference, and also throughout Day Two, the clamor to get midscale and economy brands into the region has seen some attendees fret about increased supply. At a panel titled “Economic and geopolitical outlook: 2016 and beyond,” Badr Al Badr, CEO of Saudi ownership firm Dur Hospitality, said what worried him about his home was “that there is huge supply coming to the market, up to 50% in Jeddah and Makkah. That requires new demand, relaxation of visa regulations. If we do not see those, then we are in for more declines in terms of ADR and occupancy.”

—Terence Baker, Reporter, Europe
@terencebakerhnn

Quotes of the day
“What we have yet to see is anything resembling a selfish angle from owners; that is, ‘What will happen to my hotel in any market?’ This is what we must be sure we deliver. Owners agree with the strategy, and now we must deliver the results for their hotels.”—Arne Sorenson, president and CEO, Marriott Hotels International

“We do see a place for (online travel agencies), and their sites are incredible … a tremendous experience, but we just have to get their commissions down to a manageable level, to get them down to that magical 10%, which is the commission we used to pay traditional travel agents.”—Joe Sita, CEO of IFA Hotel Investments, speaking at the panel “Industry headlines”

Tweet of the day
AHIC attendees in Dubai saw Marriott Hotels International’s president and CEO Arne Sorenson on a huge screen as he gave his thoughts on the industry, but if you were in Marriott’s headquarters in Bethesda, Maryland, you would have seen him like this. Kudos to the Marriott employee who saw a marketing opportunity and compiled the backdrop of Marriott properties.