The hotel, leisure and hospitality sectors need to invest over SR10 billion across the Kingdom during the next 10-15 years to support the growth of the country's tourism industry. The Saudi tourism industry requires the establishment of more hotels to support its development goal, according to Sami Abdulmohsin Al-Hokair, vice president of the tourism committee of the Asharqia Chamber of Commerce and Industry and chairman of the hotel sector of the Eastern Province Tourism Organization. He said this investment target would be shared by international hotel groups and local companies specializing in the development of leisure projects. Al-Hokair revealed this investment portfolio during the signing Saturday of a franchise agreement between InterContinental Hotels Group (IHG) and Al-Hokair Group to build Staybridge Suites Hotel in Riyadh Olaya with 106 suites at the cost of SR85 million. The Riyadh Olaya Staybride Suites, the first Staybridge Suites hotel in Saudi Arabia, is scheduled to open in February 2011. The agreement was signed between Al-Hokair and John Bamsey, chief operating officer of IHG Middle East and Africa. “The tourism industry requires more hotel rooms given its projected robust growth during the next 10-15 years; in the Eastern Province alone more hotels were opened in the last two years than were built in the last 20,” Al-Hokair said. Bamsey said international hotel groups would continue to invest in Saudi Arabia for many years to come. “Saudi Arabia is the strongest market to invest in; it is the strongest in the world,” he said. He said the IHG Group is now the largest hotel group by number of rooms, managing leases or franchises, through various subsidiaries, accounting for nearly 4,400 hotels and over 645,000 guest rooms in 100 countries. IHG Group considers Saudi Arabia its major market. The Al-Hokair Group operates 28 hotels and resorts across the Gulf region. It also owns and manages over 70 amusement and theme parks, has a 49 percent stake in Saudi Airline Catering, and is affiliated with 30 international companies. The Saudi Commission for Tourism and Antiquities (SCTA) is now engaged in several tourism projects. Prince Sultan Bin Salman Bin Abdul Aziz, president of SCTA, recently signed 19 contracts for tourism development valued at SR23 million. He has been encouraging the private sector to invest more in the hotels and leisure sectors.
