Bahrain’s Gulf Hotels Group is poised to make significant strides into the burgeoning tourism market of Saudi Arabia, with the imminent opening of a representative office in Riyadh. This strategic move aligns with the Kingdom’s ambitious Vision 2030, which envisions transforming Saudi Arabia into a global tourism destination.
The Bahrain Stock Exchange-listed hotel group, known for inaugurating Bahrain’s first five-star property, views Saudi Arabia as a “priority market.” Recently gaining approval from the Ministry of Commerce, the group established a subsidiary company in the Kingdom, underlining its commitment to contributing to the Saudi tourism sector’s growth.
Farouk Al-Moayyed, Chairman of Gulf Hotels Group, emphasized the strategic nature of this expansion. “Our expansion into Saudi Arabia is a strategic move that goes in line with our long-term growth plan,” stated Al-Moayyed. He added, “We see great potential in the Saudi Arabian hospitality market, and our regional representative office in Riyadh will serve as a hub for offering our best hospitality services and forming long-term partnerships.”
The move comes as Saudi Arabia actively promotes tourism as a key sector in its economic diversification efforts, moving away from oil dependency. The National Tourism Strategy aims to attract over 100 million visitors by the end of the decade, with a parallel goal of increasing the tourism sector’s contribution to the gross domestic product to over 10 percent.
Ahmed Janahi, Group CEO of Gulf Hotels Group, expressed excitement about this significant milestone. “Expanding our footprint into Saudi Arabia is a significant milestone for Gulf Hotels Group. We are excited to establish our presence in this dynamic market and contribute to its growth.”
In a similar vein, IHG Hotels & Resorts recently opened its headquarters in Riyadh, signaling its strategic focus on substantial expansion in Saudi Arabia. IHG currently manages 40 hotels in the Kingdom, totaling 18,000 rooms, with an additional 32 hotels under construction. The move aligns with the broader trend of international hotel chains recognizing Saudi Arabia’s vast potential as a key player in the global tourism landscape.