The Jeddah Ghair Summer Festival 31, which has attracted 3.5 million visitors, has boosted business for rental car companies and significantly increased occupancy rates in hotels and furnished flats, said Deputy Chairman of the Transportation Committee at the Jeddah Chamber of Commerce and Industry Sa'eed Bin Ali Al-Bassami. The event, which is organized every year during the summer holiday, attracts holiday makers and visitors from throughout the Kingdom and neighboring Gulf countries, many of whom visit every year to enjoy the cultural, social and recreational activities, Al-Bassami said. Occupancy rates in hotels and furnished flats, which have jumped to more than 80 percent, are expected to rise to 100 percent near the end of the season, he added. He said studies showed that rental rates for hotels and furnished flats in the Kingdom are lower than those in other countries, especially during such the summer season. He said investments in Jeddah's hotel market are growing rapidly, which is reflected by a report showing the number of hotel rooms will grow from 3,600 at present to 5,500 rooms by 2014. There are also 300 furnished-flat centers; room rates at the centers for one room does not exceed SR120 during peak seasons and SR80 during the low seasons, SR250 for a 2-room flat and SR650 per day for a deluxe apartment, Al-Bassami said. Rents increase at times because of supply and demand, but they do not reach unreasonable amounts, he said. Inspectors from the Ministry of Commerce and Industry make around-the-clock inspection tours to ensure the quality of service and that rental rates are fair, he added. He said the festival has saved the market from the recession, which has plagued some businesses. Studies indicate that 20 percent of the visitors prefer to live in hotels, 50 percent in furnished flats and 19 percent prefer to stay with their relatives or in bungalows. He said it is a challenge to ensure that places to stay are both moderately priced and providing good-quality services. Ahmad Sajdi Al-Attawi, a member of the Jeddah Chamber of Commerce and Industry Transportation Committee, said tourist festivals throughout the Kingdom play a substantial role in generating business for rental car companies. He said that during the festivals, daily rent for small cars is SR80 to 100, medium cars are SR130 to 160, big cars are SR350 to 600 and luxury cars rent for SR800 to 2,000 per day. Al-Atttawi said family vans are in high demand because families use them to travel to summer resorts in the Kingdom.
