Destination Saudi: The Impact of Vision 2030 - Sean Young, Colliers

Draft for Discussion

Destination Saudi – The Impact of Vision 2030Seán Young, Head of Destination Consulting


Colliers International 2017 2

Contents

• Colliers International

• Vision 2030

• Positive Market Dynamics

• Supporting the Growth of Tourism &

Leisure

• Key Projects

• Challenges & Opportunities


Colliers International 2017

Colliers International



Colliers International Destination Consulting

Attractions / Theme Parks / Water Parks / Museums / Malls / Resorts / Zoos / Event Venues.

More than 2,000 projects across the world over 25 years:

Selected Regional Projects

• Ayla Resort Entertainment, Jordan

• Mishkat Science Centre, KSA

• King Abdulaziz Centre for World

Culture, KSA

• KAEC Leisure District, KSA

• Jubail Waterpark, KSA

• Riyadh Adventure Park, KSA

• Misk Museum, KSA

• Doha Zoo, Qatar

• EIA of Cultural Tourism, Qatar

• Saadiyat Island Museums, UAE

• Dubai Riverland, UAE

• Mall of the World, UAE

Selected Other Projects

• Chester Zoo, UK

• Brussels Aquarium, Belgium

• Petronas Towers Visitor Experience,

Malaysia

• Odyssey Arena Belfast, Ireland

• National Art Gallery Singapore

• Waterpark Turkey

• Vernisaz Entertainment Centre, Riga

• Olympic Park Entertainment, UK

• O2 Arena London

• IMAX Cinema, UK

• Shanghai Winter Wonderland, China



Vision 2030

An

Am

bit

iou

s

Na

tio

n

Th

riv

ing

Ec

on

om

y

Vib

ran

t S

ocie

ty

Living by Islamic Values

Focusing Efforts to serve Umra Pilgrims

Investing for Long Term

Rewarding Opportunities

Leveraging its Unique Position

Effectively Governed

Responsibly Enabled

Leveraging its Unique Position



Vision 2030

“We will support promising sectors and foster their success so that they

become new pillars of our economy…

In the tourism and leisure sectors, we will create attractions that are of

the highest international standards, improve visa issuance procedures for

visitors, and prepare and develop our historical and heritage sites.”

Vision 2030



Vision 2030

“We are well aware that the cultural and entertainment opportunities

currently available do not reflect the rising aspirations of our citizens and

residents, nor are they in harmony with our prosperous economy.”

“We will allocate prime areas within cities for educational institutions,

retail and entertainment centers, large areas along our coasts will be

dedicated to tourist projects …..”

Vision 2030



Vision 2030

Source: Meed.com


Positive Market Dynamics



A Large and Fast Growing Population

2015

31

.5 M

illio

n

31

.5 M

illio

n

2025

19.4%

GROWTH of

OVER 10 YEARS

37

.6 M

illio

n



A Young Population

57% of Saudi Nationals are under the age of 25 with increasing

aspirations for quality leisure and entertainment experiences



Increasingly Affluent Population

22%

4%

44%

25%

9%

>$100,000 $55,000-

100,000$25,000-

55,000

$10,000-

25,000

<$10,000

Annual Household Income

16.0%

Average monthly expenditure of a Saudi

household in 2013 was SAR 15,367 a

increase on 2007



Significant Tourism Growth Potential

Inbound tourism forecasts2016 2026 CAGR

Tourists 20.2m 32.3m 4.8%

Spend (SAR) 32.8bn 55.9bn 5.2%

Source: WTTC, 2016

Domestic tourism forecasts2015 2020 CAGR

Tourists 46.5m 66.2m 7.4%

Spend (SAR) 47.9bn 82.6bn 11.5%

Source: MAS, 2016



Umra Pilgrims – a target sector for leisure and cultural

Umra Pilgrims – Growth Scenarios

Source: Ministry of Hajj & Colliers International Projections


Significant Lack of Supply

• A significant lack of out-of-home culture,

leisure and entertainment

• Existing offer limited to public parks, malls,

festivals and traditional museums

• But beginning to change – KidZania, Snow

City and King Abdulaziz Centre for World

Culture

• Six Flags entering the market



Consumer Leisure Behaviour

• Heavy social media users- average Saudi

consumer owns 2.3 connected devices, with

average 9 out of 10 Saudis own a smartphone

(Source: Google 2016)

• Evening dominated leisure market

• Congregation and socialising in appropriate

public environments including cafes, malls, etc.

• Very high footfall at Malls – Kingdom Mall 8

million, Riyadh Gallery c. 14 million, Mall of

Arabia 16 million, Red Sea Mall 15.6 million

• Weekend homes (also known as “Istirahas”)

usually located at the outskirts of the city

• Popularity of parks & bbq


Supporting the Growth of Tourism & Leisure



Investment in major transport infrastructure - airports

King Abdulaziz Int’l Airport (Jeddah)Prince Mohammad Bin Abdulaziz Airport

(Madinah)

Expected to

handle a total of

80 million annual

passenger

capacity by 2035

Expected to

handle a total of

27 million annual

passenger

capacity



Rail Infrastructure Haramain High Speed Rail line (2018)

Total of 450 km

Makkah

Station

Jeddah

Central

Station

King

AbdulAziz

Int’l Airport

KAEC

Station

Madinah

Station

65 km 25 km 105 km 255 km

20 Min 10 Min 28 Min 75 Min

Makkah Jeddah KAEC Madinah

Distance

Trip Time

HARAMAIN HIGH SPEED RAILWAY

Key HHRS facts:

Maximum Annual Capacity: 20 million

passengers

Maximum Speed: 300 km/hr

Makkah-Madinah = 2.25 hours

Makkah-Jeddah Airport = 30 minutes



• Increased capacity at the

Holy Mosques in Mecca to

reach 2.5 million

worshippers

• Increased capacity at the

Holy Mosque in Madinah

to reach 1.5 million

worshippers

Growth of Tourism

& Leisure

• Introduction of the ‘Umrah

Plus’ Visa which allows

Pilgrims to travel around

KSA for up to 30 days

• Significant private sector

investment in hotels and

resorts

• Investment in parks, attractions,

festivals and other recreational

activities

• investment of over USD 13

million/year on the preservation

of heritage sites

• Gradual opening to new forms

of leisure, entertainment and

cultural activities e.g. the

successful ILuminate Show in

Riyadh in summer 2016


Recent and Planned Projects


Recent Cultural Projects

Mishkat Science Centre

King Abdulaziz Centre for World CultureOld Dir'aiyah Heritage Park


Pipeline Cultural Projects

• National Park development,

Riyadh

• Islamic Faith Museum, Mecca

• National Museum

redevelopment, Riyadh

• Natural History & Science

Museum, Riyadh

• Prince Salman Science Oasis,

Riyadh

• Madinah Welcome Center

• Number of new cultural

attractions proposed for the

Financial District, Riyadh


Recent Leisure Projects

Snow City Riyadh KidZania Jeddah


Pipeline Leisure Projects

• Theme Park, Safari Park &

Water Park, KAEC

• Theme Park & Adventure Park,

Wadi Al Asla, Jeddah

• Indoor Waterpark, Jubail

• Six Flags Theme Park, Riyadh

• KidZania Riyadh

• KidzMondo Riyadh

• Knowledge Economic City

Madinah Leisure Park


Saudi Arabia 2017 – Major Events

• Comic Con

• Cirque De Soleil

• Grand Moscow Show

• Monster Jam

• Tom & Jerry Musical

• Oprah’s Life Class

• Marvel Universe Live

• The Golden Age of Circus

• Shrek the Musical

• An Evening with Al Pacino


Challenges & Opportunities


Challenges

• Cultural Fit

• Climate

• Repeatability

• Religious Pilgrims

• Gender Segregation –

physical and/or temporal

• ‘Saudization’

• Staff Recruitment and Training

• The Power of Social Media and

Word of Mouth Marketing


Key Development Opportunities

• Theme Parks

• Zoos and Safari Parks

• Indoor and Outdoor Adventure

Activities

• Commercial Family Attractions

• Touring Exhibitions

• Car-related attractions

• Retail, Dining and Entertainment

(RDE) Zones

• Festivals & Events

• Cinema?

CONTACT DETAILS:

Seán Young

Colliers International Destination Consulting

50 George Street

London

W1U 7GA, UK

email: [email protected]

Mb: +44 7798 838307

www.colliers.com/uk/DestinationConsulting

Colliers_DesCon

https://twitter.com/colliersksa

https://twitter.com/colliersksa

Destination Saudi: The Impact of Vision 2030 - Sean Young, Colliers

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