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Jeddah hotels experience highest occupancy since 2016, thanks to ‘Arab League Summit’

The research claimed that despite hotel rates being lower than the previous month, Jeddah's RevPAR was at its highest since September 2019

The occupancy rate at Jeddah hotels surpassed 80% in May 2023, the highest monthly rate since 2016, as Saudi Arabia advances toward its objective of becoming a regional centre for commerce and trade.

According to international data benchmarking company STR, the Arab League Summit, which took place in Jeddah on May 19, was the leading cause of the increase in hotel reservations.

According to its data, the second-largest city in the Kingdom experienced its highest occupancy rate on May 17, at 90.6%, and its top average room rate on May 18, the night before the Arab League Summit, at SR1,440.69 (USD 384.14).

In addition, the port city’s occupancy rate increased by 21.9% in May 2023 compared to the same month in 2022, with an average daily rate of SR924.32 and income per available room of SR738.80.

The research claimed that despite hotel rates being lower than the previous month, Jeddah’s RevPAR was at its highest since September 2019.

The hotel industry was most adversely affected by the COVID-19 pandemic in Saudi Arabia and the Gulf, as in all other regions.

In Riyadh, hotel occupancy rates dropped from 60% in 2019 to 49% in 2020. According to professional services firm Deloitte, Makkah’s percentage dropped from 61% to 25%, and Jeddah’s from 58% to 37%.

However, the growth rate immediately increased as Saudi Arabia prioritized tourism as part of its recovery strategy following COVID-19.

As part of its commitment to ‘Vision 2030’, the Kingdom is working to bring in 100 million tourists annually for the next seven years, as it shifts its focus towards the non-oil sectors to diversify the domestic economy.

Saudi Minister of Tourism Ahmed Al-Khateeb declared that the Kingdom is providing investment opportunities worth USD 6 trillion in the travel and tourism sector through 2030 during a speech at the ‘World Travel and Tourism Council Global Summit’ in Riyadh in November 2022.

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