Experts and specialists in the Saudi tourist accommodation sector forecast that Saudi hotel brands are planning to increase their investments and expand outside the Kingdom through franchising, reports Saudi-based Al-Hayat.
A Saudi tourism official reveals that there is an increased demand for tourist accommodation projects, as the number of new under-construction projects reached 550, of which 75 are five-star hotels.
The number of licensed hotels in various regions of the kingdom is 1,240 and the number of housing units is 2,359, he adds.
Mohammed Al Moajil, head of the tourism committee at the Chamber of Commerce and Industry, says franchise is the future and needs to be legalized and regulated.
Saudi brands such as Intour must give other investors the opportunity to study their growth models and help them learn and expand, domestically and internationally, he adds.
Faisal Al Motlaq, chairman of the Saudi Hospitality Association, reveals that the association is tasked to work with the Saudi Commission for Tourism and Antiquities (SCTA) to issue licenses according to the new classification system for hotels and residential units, which will be announced soon.