MARKET REPORT: MIDDLE EAST In summary, there are clear signs of the
leisure industry in the UAE not just beginning to recover from the impact of the Corona virus pandemic but emerging with an increased stock of new attractions that must surely help draw international visitors back to the UAE in ever increasing numbers. The priority, though, is not just about developing more attractions, it’s about getting the existing ones fully operational again and hosting the best Expo ever. If anyone can successfully do this, it’s the UAE.
Saudi Arabia While the UAE is beginning to mature as a leisure market, Saudi Arabia is very much in the development stage as it seeks to diversify its economy and reduce its reliance on the oil sector. The Saudi Commission for Tourism and National Heritage (SCTH), the country’s tourism regulator, recently reported that mega tourism projects being developed by the Public Investment Fund will be spread over an area of more than 65,000 sq km, with a value exceeding $810 billion. Of this total, Neom, a zero-carbon new
mega-city project in the north-east of Saudi, alone accounts for US$ 500 billion and 26,500 sq km. Other headline tourism and leisure
mega-projects underway in the Kingdom include Al Ula, Amaala, the Red Sea Project, Qiddiya, King Salman Park and Ad Diriyah, both the latter being located in Riyadh. Amaala and The Red Sea Project cover
3,800 sq km and 34,000 sq km respectively while Qiddiya is a 340 sq km theme park anchored entertainment city 40 kms south west of Riyadh. Recent on- line reports indicate the opening of the first phase of Qiddiya as early as 2023 but in these current times of uncertainty, this could readily now be later than this. All of the projects listed above were
announced well before the coronavirus pandemic, but the important factor to note is that they have all continued to make valuable progress even during the
King Salman Park, Riyadh, Saudi Arabia. 3D Rendering © Omrania
coronavirus pandemic. As examples of this, the Red Sea Development Company is understood to have awarded construction contracts worth in excess of $1 billion, Neom has awarded Bechtel and Aecom programme management contracts and a number of design package tenders have been issued for attractions at Qiddiya. These are just the headline projects,
there are many more at a regional and city level. For example, SCTH has projects with a value of more than $1.3 billion developing museums in various Saudi regions and preserving Saudi heritage. In addition, the Kingdom is also making progress on the development of a range of nature reserves and mountain resorts with adventure centres. Nor is everything Government-led, of
course, but for the time being it can be safely assumed that the vast majority of private-led attraction projects in the Kingdom are either on hold until further notice or are being subjected to an extended period of assessment. A notable exception to this is Majid Al Futtaim’s Mall of Saudi in Riyadh, announced to include the Middle East’s largest indoor ski slope and snow park, which recent reports indicate is expected to break ground in Q4 2021.
The key challenge for existing attraction
operators in KSA, of course, is to be able to achieve an economically sustainable position. Attractions in KSA closed on 15 March 2020 but re-opened on 20 June 2020 and apart from a month in January 2021 have remained open. The challenge, however, is all the other restrictions that apply. For example, on 19 May 2021, the Ministry of Interior announced that the COVID-19 vaccination will be necessary for individuals to enter any social, economic, commercial, cultural, scientific, entertainment or sporting event, and that the decision covers government, private and educational institutions, as well as public transportation. The outlook for the entertainment and
amusement market in KSA is, however, considered to be good, with a recent report forecasting that the Saudi Arabian entertainment & amusement market will reach US$ 1.17 billion by the end of the year 2030, up from US$ 24 million in 2020, equivalent to a CAGR of 47.65% during the period 2020-2030. (Research and Markets – “Saudi Arabia Entertainment & Amusement Market Forecast by Theme Park/Amusement Park, Festivals, Concerts, End-user, Companies” report, June 2021). It should be noted, however, that the value quoted
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PARK WORLD Handbook & Buyer’s Guide 2021/22
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