GlobalData Plc
  • Press Release

    Saudi Arabia to see over 20 million visitors by 2020 as Hajj pilgrimage boosts tourism sector

Inbound arrivals to Saudi Arabia will reach over 20 million by 2020, as the religious tourism sector flourishes in line with increasing demand to join the annual Hajj pilgrimage, the most important religious event of the year in the Muslim world, according to GlobalData, a recognized leader in providing business information and analytics.

The company’s latest report finds that the Hajj represents a major tourism opportunity for both domestic and international stakeholders, particularly hotel groups and tour operators, as over two million pilgrims will travel to Saudi Arabia in September to visit Islam’s holiest site in Mecca. This will help Saudi Arabia to offset its recent losses in oil revenue, which accounts for 40% of the country’s GDP, with tourism contributing just 3.5% of GDP in 2015.

Gillian Kennedy, Travel and Tourism Analyst for GlobalData, explains: “While the Hajj is an established ritual in the Islamic world, its importance as a tourism destination has been transformed in recent times. The Saudi government is investing heavily in new hotels and spending more than US$13 million a year renovating historical religious sites. Specific landmark hotel openings in the pipeline include the Abraj Kudai hotel, which will be the world’s largest hotel with 10,000 rooms, built at an estimated cost of US$3.6 billion.”

According to government statistics, tourist expenditure during Hajj season will increase by 30% over last year’s figures and reach US$6.9 billion in 2016. The increase is expected after the Saudi government ended the limit on Hajj pilgrimage visitors as previous overcapacity incidents caused violent episodes amid serious crowding at the Hajj.

Kennedy continues: “Despite previous incidents, demand to visit the Hajj continues to grow with over three million visitors a year, and tourist accommodation is witnessing a major increase in prices. With at least 40% of pilgrimage expenditure used for accommodation such as hotels or fully-furnished apartments, there are a plenty of investment opportunities with significant revenue potential emerging in the Saudi Kingdom. Already, 13 of Mecca’s 15 old neighborhoods have been rebuilt to make room for hotels and commercial spaces.

“Moreover, one square meter of land in the area surrounding the Grand Mosque is currently valued at US$122,350, resulting in much of the native population selling their property to the government or to real estate developers.”

Related Reports

From GlobalData’s report:

Travel and Tourism in Saudi Arabia to 2020 Free Sample

Related GlobalData Reports

Related Intelligence

Want more Insight like this?

Our interactive subscription platform has the most comprehensive data and analysis in your industry.

Request a Demo

Related Consulting

How can we help your business?

Our consultants are skilled in every specialist market niche to deliver solutions specifically designed for your individual requirements.

Request a Callback

    Press Release Consumer

    APAC to remain as the largest skincare market through 2022

    Asia-Pacific (APAC) region will continue to be the largest skincare market through 2022 and is forecast to reach US$90.9 billion, according to leading data and analytics company GlobalData. The company in its latest report, Opportunities in the Asia-Pacific Skincare Sector, forecasts that APAC region, which accounted for a 57.5% value share of the global haircare...

    Press Release Consumer

    Australia’s foodservice profit sector to surpass AUD$80bn by 2021, says GlobalData

    Buoyed by high levels of urbanization and increasing disposable incomes, Australia’s foodservice profit sector is expected to grow at a compound annual growth rate (CAGR) of 2.6% and reach a market value of AUD$80.8bn over the period 2016-2021, according to leading data and analytics company GlobalData. Australia’s strong economy has made foodservice market an attractive...

    Press Release Consumer

    Australian smoking tobacco market to grow in short term despite tax hikes

    Since 2014, the popularity of smoking tobacco has been growing in Australia with legal per capita consumption increasing to 90.8g in 2017. In addition to this, there is a considerable amount of “chop-chop” or illegal loose tobacco available to consumers, according to leading data and analytics company GlobalData. Smoking tobacco, which includes product segments such...

    Press Release Consumer

    10 FMCG trends to watch out for in 2018

    2018 is shaping up to be a year of contradictions in the fast-moving consumer goods (FMCG) market. Healthy junk food is emerging as a snack food trend, but consumers are also re-discovering indulgence via a counter-trend called sweet revenge that celebrates all that is sweet according to GlobalData, a leading data and analytics company. These are two of ten new trends that the company expects to influence packaged goods innovation and marketing in 2018.

    Press Release Consumer

    APAC to surpass Americas to become largest haircare market by 2022, says GlobalData

    Asia-Pacific (APAC) region is set to surpass Americas to become the largest haircare market by 2022 holding a value of US$32.8 billion, according to leading data and analytics company GlobalData. The company in its report, Opportunities in the Asia-Pacific Haircare Sector, forecasts that APAC region, which accounted for a 35.2% value share of the global...

Media Enquiries

If you are a member of the press or media and require any further information, please get in touch, as we’re very happy to help.
PhoneEMEA: +44 207 832 4399
PhoneAPAC: +91 40 6616 6809
Onlinecontact online

56% of #consumers are concerned about the impact of diet. Join us for more insight @incosmetics #cosmetics #trends…