PARIS: Nowhere in the world has more accommodation available on Airbnb than Paris. Now the home-sharing website that has transformed budget travel to the French capital is giving its super-deluxe hotels a fright too.
“The Paris market is going to get very difficult,” said Didier le Calvez, managing director of the Bristol Hotel. Along with bosses of the city’s other “palaces,” he denounces Airbnb as a menace that enjoys an unfair advantage.
A trawl of the Paris region’s 50,000 Airbnb offerings — there were only 7,000 across the whole of France in 2012 — suggests le Calvez and his colleagues have reason to worry.
Airbnb offers between 380 and 400 Paris properties at over 500 euros a night. Of those, about 40 charge over 1,000 euros ($1,090).
Add in the attraction of individuality, anonymity and in some cases extra beds, and that puts them potentially in competition with the 1,000 euro a night Bristol and half a dozen other high-end Paris hotels, which have about 1,500 rooms to offer in total.
The Paris luxury sector is already worried about a surge in competition from newly opening hotels.
Consultants JLL Hotels & Hospitality reckon that capacity will be 60 percent greater in 2018 than a decade earlier.
A downturn in visits from wealthy Russians and Brazilians as the economies there falter, and fears among US visitors of rising anti-semitism in France, are also a factor.
17TH CENTURY PENTHOUSE
The Bristol suffered a 20 percent drop in revenue in the first half of this year and an occupancy rate that fell to 61.2 percent from 69.2. The Four Seasons George V saw a 5 percentage point drop in occupancy to 66 percent in the same period. The Plaza Athenee cut its prices by 20 percent last winter.
At the same time, maid and concierge services and other extras are all available along with some seriously swanky real estate on Airbnb, the US-based firm which has been valued at around $10 billion.
Host owners “Maxime and Fanny” present a flat they say was once the home of film star Brigitte Bardot, and whose “140 meter square terrace offers you a breathtaking 360 degree view of the capital city” — all for 1,200 pounds ($1,860) a night.
Another similarly-priced flat has a view of the Eiffel Tower from its luxurious-looking bathroom.
American actress Judith Freiha gets rave reviews for her one bedroom apartment on the Ile Saint Louis, an island in the Seine river near the heart of the city whose buildings date mostly from the 17th Century.
At 900 euros a night her bijou 54 square meter penthouse — with its two terraces facing south to a secluded courtyard and north onto the main street — attracts silicon valley professionals, supermodels and wealthy courting couples. One romantically inclined client proposed to his girlfriend there.
Included in the price is a “meet and greet” service from Freiha herself, who has family in Paris with whom she can stay.
Not included is the 150 euro cleaning fee. “I do that myself. I get a team to clean, but then I go over in detail the things other people don’t do,” she told Reuters.
“I really try to make my schedule to get there before the people get there. Then I get to meet them, and I enjoy that because I love them to see who I am, to live in my world.”
She lets her flat around six weeks a year, for stays ranging mainly from two nights to a week.
Airbnb says it is not in competition with the palaces.
“It’s a totally different thing,” said Nicolas Ferrary, director of the company’s operation in France. A spokeswoman added: “These residences are chosen for the unique experience they offer, but which remain very different from what a luxury hotel can propose.”
The super-luxury hotels are not so sure.
A recent change in the law, which was previously unclear about sub-letting homes, gave French people the right to do so with their main residence for four months of the year.
Although they should declare any income for tax purposes, they do not face the other tax and social charges that a business such as a hotel has to pay.
“It’s a tax attack,” said Francois Delahaye, managing director of the Plaza Athenee. Jose Silva, who runs the Four Seasons George V, said: “It’s obvious that a large part of our clientele, especially the families, will abandon the palaces.”
Valerie Bodocco, CEO of My Paris Agency which acts as an intermediary between owners and booking web sites, believes Airbnb is seeing off competitors at the top end of the market.
Airbnb gives Paris luxury hoteliers a fright
Airbnb gives Paris luxury hoteliers a fright
Closing Bell: Saudi main index rises to close at 12,126
- Parallel market Nomu gained 12.14 points, or 0.04%, to close at 31,039.53
- MSCI Tadawul Index gained 1.87 points, or 0.12%, to close at 1,512.01
RIYADH: Saudi Arabia’s Tadawul All Share Index rose on Sunday, gaining 29.22 points, or 0.24 percent, to close at 12,126.97.
The total trading turnover of the benchmark index was SR4.26 billion ($1.13 billion), as 140 of the stocks advanced and 91 retreated.
The Kingdom’s parallel market Nomu gained 12.14 points, or 0.04 percent, to close at 31,039.53. This comes as 47 of the listed stocks advanced, while 34 retreated.
The MSCI Tadawul Index gained 1.87 points, or 0.12 percent, to close at 1,512.01.
The best-performing stock of the day was Fitaihi Holding Group, which debuted on the main market on Sunday, with its share price surging 6.15 percent to SR4.66.
Other top performers included Saudi Industrial Investment Group, which saw its share price rise 5.59 percent to SR17.00, and Fawaz Abdulaziz Alhokair Co., whose share price surged 4.88 percent to SR15.46.
Arabian Pipes Co. recorded the biggest decline, with its share price falling 3.62 percent to SR12.24.
Maharah Human Resources Co. followed, with its stock price decreasing 2.75 percent to SR6.73.
Takween Advanced Industries Co. also experienced a drop, with its share price slipping 2.39 percent to SR10.62.
On the announcements front, Banan Real Estate Co. completed the acquisition of a 45 percent stake in Qimam Noshz Real Estate Development Co., with a total capital of SR71 million.
According to a Tadawul statement, the stake is to be divided with Banan Real Estate Co. holding 23 percent, while its subsidiary, Al-Aziziah Investment and Real Estate Development Co., holding 22 percent.
Banan Real Estate Co. closed the session at SR6.80, down 0.88 percent.
Al-Etihad Cooperative Insurance Co. has signed an agreement with AlRajhi Bank to provide bancassurance services and quotations for leased vehicle comprehensive insurance.
A bourse filing revealed that this partnership is part of the “Lease with a Promise to Own” program. The one-year contract’s revenues are projected to exceed 5 percent of the company’s gross written premiums reported in its 2023 annual financial statements. The financial impact of this agreement is expected to reflect in the firm’s performance starting from the first quarter of 2025.
Al-Etihad Cooperative Insurance Co. closed the session at SR17.86, up 0.57 percent.
Scientific and Medical Equipment House Co. announced it has been awarded a project tender by the General Directorate of Health Affairs in Najran Region valued at SR99 million.
According to a Tadawul statement, the project covers the maintenance and repair of medical devices and equipment for several hospitals in the area. The financial impact of the project is anticipated to begin in the second quarter of 2025.
The firm ended the session at SR51.60, marking a 51.60 percent increase.
Saudi Arabia ranks 7th globally in IPO proceeds, leads GCC region
- Kingdom accounted for 42 of the 53 IPOs in the GCC in 2024
- UAE led in terms of proceeds with $6.2 billion
RIYADH: Saudi Arabia led the Gulf Cooperation Council’s initial public offerings market in 2024, earning a global ranking of seventh in total IPO proceeds, according to the latest report from Kamco Invest.
The Kingdom accounted for 42 of the 53 IPOs in the GCC last year, significantly outpacing its regional peers and aligning with expectations to maintain its leadership in the coming year.
The surge in listings highlights Saudi Arabia’s dominant position in the regional capital markets and its role as a key driver of IPO activity across the GCC.
The figure represents a sharp increase from 46 IPOs across the GCC in 2023, underscoring continued investor interest and market dynamism.
GCC issuers collectively raised $12.9 billion in 2024, a 19.8 percent increase from $10.8 billion in 2023, despite global IPO markets experiencing their weakest performance since 2009.
Within the GCC, Saudi companies contributed $4.1 billion, amounting to 31.6 percent of total regional proceeds.
While the UAE led in terms of proceeds with $6.2 billion, its share of GCC IPO proceeds dropped from 56.3 percent in 2023 to 47.8 percent in 2024.
Oman ranked third, with state-backed privatizations raising $2.5 billion, or 19.3 percent of total GCC proceeds.
The majority of Saudi IPOs occurred on the Nomu–Parallel Market, which hosted 28 of the Kingdom’s listings.
The main market recorded 14 IPOs, including standout listings such as Dr. Soliman Abdel Kader Fakeeh Hospital, which was oversubscribed 119 times and garnered orders worth $91 billion.
Other notable listings included Almoosa Health, Miahona Utilities, and Nice One Beauty Digital Marketing.
The strong demand was driven by a local investor base and underscored the resilience of Saudi capital markets despite challenges such as declining oil prices and geopolitical tensions.
The report said that sectors such as health care, materials, and professional services were among the most active in Saudi IPOs, reflecting strong fundamentals and investor confidence in these industries.
Globally, the GCC ranked fourth in IPO proceeds, trailing China, the US, and Japan, demonstrating its growing importance as a financial hub.
Looking ahead to 2025, Saudi Arabia is expected to further dominate, with 31 IPOs in the pipeline, according to Kuwait-based asset management company Kamco Invest.
The Kingdom’s Public Investment Fund is set to play a pivotal role with upcoming listings of Saudi Global Ports, Nupco, and Tabreed District Cooling, among others. Several private companies, including flynas, Tabby, and Ejada Systems, are also preparing IPOs.
Oman plans to privatize up to 30 assets in the coming years, with Asyad Group and Oman Electricity Transmission Co. expected to go public in 2025.
In the UAE, major listings are anticipated from hotel operator FIVE and real estate companies under Dubai Holding, alongside Dubizzle Group and Alpha Data.
Despite external headwinds like geopolitical tensions and rising economic pressures, the GCC IPO market has proven resilient, with a robust pipeline of offerings across various sectors.
Oman’s import price index up 1.1% in Q3 2024
- Largest price hike was recorded in miscellaneous manufactured goods category, which rose by 11%
- Mineral fuels and related materials saw a significant decrease of 22.2%
RIYADH: Oman’s general index of import prices saw an increase of 1.1 percent in the third quarter of 2024 compared to the same period in 2023, according to data from the National Center for Statistics and Information.
The largest price hike was observed in the miscellaneous manufactured goods category, which rose by 11 percent. This was followed by beverages and tobacco (up 6.7 percent), and food and live animals (up 5.7 percent).
Other notable increases included machinery and transport equipment (5.3 percent), chemicals and related materials (4.3 percent), raw materials (4.3 percent), manufactured goods primarily categorized by material (1.6 percent), and vegetable and animal oils, fats, and waxes (0.9 percent).
In contrast, the category of mineral fuels and related materials saw a significant decrease of 22.2 percent.
This increase in import prices aligns with Oman’s overall rise in imports, which grew by 10.8 percent, reaching 8 billion Omani rials ($20.8 billion) by June 2024, up from 7.2 billion rials in the same period of 2023.
Additionally, the general index of import prices declined by 4.8 percent when compared to the second quarter of 2024. This drop was largely due to decreases in the prices of beverages and tobacco (-22.4 percent), mineral fuels and related materials (-11.6 percent), and chemicals and related materials (-10.8 percent).
The miscellaneous manufactured goods category also saw a reduction of 10.2 percent, while machinery and transport equipment dropped by 3.9 percent. However, the raw materials category saw a 32 percent increase, vegetable and animal oils, fats, and waxes rose by 9.2 percent, and food and live animals increased by 3.5 percent.
Lending trend
Oman’s banking sector experienced a 4.2 percent year-on-year growth in the total balance of credit granted by the end of November 2024, reaching 32.2 billion rials.
According to the Central Bank of Oman, credit to the private sector grew by 5.1 percent, totaling 26.8 billion rials during the same period. This growth reflects the central role of the banking sector in providing credit within the Omani economy, especially given the limited access the private sector has to debt capital markets. In 2022, private sector credit represented 55.4 percent of the country’s gross domestic product, a trend consistent with data from the International Monetary Fund.
Further breakdowns of the credit data revealed that the largest share (45.3 percent) of the private sector credit went to individuals, followed closely by non-financial companies at 45.1 percent. The remaining 9.6 percent was divided between financial firms (6.1 percent) and other sectors (3.5 percent).
In terms of deposits, the total balance in Omani banks grew by 10.8 percent, reaching 31.5 billion rials by the end of November. Of this, private sector deposits increased by 9.2 percent, amounting to 20.6 billion rials.
The breakdown of private sector deposits revealed that the individual sector held the largest share at 49.7 percent, followed by the non-financial corporate sector at 30.6 percent, and the financial corporate sector at 17.1 percent. Other sectors accounted for 2.6 percent.
Saudi entertainment authority launches 3rd startup accelerator to drive innovation
- Program offers consulting, mentorship, and international exposure to participating startups
- Initiative runs for 10 months and is designed to foster entrepreneurship
RIYADH: Saudi Arabia’s entertainment sector is set for further growth as part of major initiatives aimed at supporting 32 startups and driving innovation in the industry.
The General Entertainment Authority has launched the third edition of its accelerator program, offering consulting, mentorship, and international exposure to participating startups, the Saudi Press Agency reported.
The initiative, which runs for 10 months, is designed to foster entrepreneurship and align with Vision 2030’s goal of economic diversification.
The accelerator will support startups through two cohorts, each comprising 16 businesses. Participants will receive 192 hours of expert guidance, co-working spaces, and two international trips to explore global markets and trends.
With the entertainment sector expected to generate 450,000 jobs and contribute 4.2 percent to Saudi Arabia’s gross domestic product by 2030, the initiative seeks to strengthen the ecosystem, enhance innovation, and attract investment.
Building on the success of previous editions, the first accelerator program, launched in 2023, approved 14 projects following a rigorous selection process. Entrepreneurs benefited from workshops, mentorship, and access to investors.
The second edition, launched in mid-2023, continued these efforts, helping startups overcome challenges and grow in a rapidly expanding market.
The second edition, launched in mid-2023, continued these efforts, helping startups navigate challenges and achieve growth in a rapidly expanding market.
Tailored programs will assist startups in navigating the entertainment industry’s unique challenges and improve their chances of success.
The GEA emphasized that this initiative also supports its broader goal of positioning Saudi Arabia as a regional entertainment hub.
Scheduled to run for 10 months, the initiative is expected to significantly impact the entertainment sector, aligning with Vision 2030’s objectives.
In March 2023, GEA approved 14 projects for its inaugural Entertainment Activities Business Accelerator, aimed at providing a stimulating environment with guidance, training, and connections to industry experts and investors.
The selection process for the first cohort began with 260 project registrations, with 60 advancing to initial interviews. A jury ultimately shortlisted 22 initiatives, approving 14 projects.
Participants engaged in an intensive training program, including weekly workshops, individual consulting sessions with specialists, and interactions with successful business owners.
The program also included mentorship, setting weekly goals to monitor progress and prepare participants for pitching their ideas to investors.
In June 2023, GEA organized sessions with speakers and consultants to guide entrepreneurs. The event featured 56 hours of counseling, with eight speakers and three consultants from prominent Kingdom-based entrepreneurs.
Building on the first accelerator’s success, GEA opened registration for the second Entertainment Business Accelerator in July 2023. The program ran from July 24 through the end of October, continuing GEA’s efforts to support startups and foster a conducive environment for entrepreneurs in the entertainment sector.
Saudi SME job growth hits 10-month high amid expansion plans
- SMEs doubled over past seven years, with 45% led by women entrepreneurs, says finance minister
- Riyad Bank Saudi Arabia SME Purchasing Managers’ Index stood at 56.9 in December
RIYADH: Saudi Arabia’s small and medium enterprises recorded their strongest employment growth in 10 months during December, fueled by long-term expansion plans and robust domestic demand, according to a new report.
The Riyad Bank Saudi Arabia SME Purchasing Managers’ Index stood at 56.9 in December, slightly lower than November’s 57.1 but well above the neutral 50 mark, indicating sustained growth in the sector.
Strengthening the SME segment is a cornerstone of the Kingdom’s economic diversification strategy under Vision 2030, aimed at reducing dependence on oil revenues.
Finance Minister Mohammed Al-Jadaan highlighted the sector’s rapid growth in October, noting that the number of SMEs in Saudi Arabia had doubled over the past seven years, with 45 percent now led by women entrepreneurs.
“The Riyad Bank Saudi Arabia SME PMI concluded the year on a high note, reflecting a robust performance of the SME sector. The fourth quarter of the year showcased a marked improvement over the third quarter, with the average PMI hitting 56.8, the highest quarterly reading since the end of 2023,” said Naif Al-Ghaith, chief economist at Riyad Bank.
He added: “This upturn in the SME sector is a testament to the thriving economic environment, characterized by increasing output levels and a surge in incoming new work.”
The report attributed December’s employment surge to sharp increases in output and incoming new work, supported by stronger business and consumer spending.
The analysis said that SMEs widely reported strong demand conditions, fueled by increased business and consumer spending, alongside a supportive economic environment.
S&P Global said job creation rose in December, with staffing levels and growth rates accelerating at their fastest pace since February.
“This surge in employment is fueled by long-term business expansion plans and upcoming new projects, reflecting a positive outlook among SMEs,” said Al-Ghaith.
Despite higher input costs, including salary increases and rising raw material prices, inflation pressures eased slightly in December compared to the previous month.
Business confidence among SMEs reached its highest level since March, marking three consecutive months of improved expectations.
He added: “This optimistic trajectory aligns with Saudi Arabia’s Vision 2030.” “The strong performance of SMEs, as evidenced by the Riyad Bank Saudi Arabia SME PMI, underscores the ongoing efforts to bolster economic diversification and support the growth of this sector.”
He said that SMEs’ resilience and expansion are pivotal for achieving Vision 2030’s goals of creating sustainable employment and promoting inclusive economic growth.
The positive SME performance aligns with broader economic trends. A separate S&P Global report showed that Saudi Arabia’s overall PMI for December reached 58.4, signaling robust growth in the non-oil economy.
“By fostering a vibrant SME sector, Saudi Arabia can enhance its economic resilience, create sustainable employment opportunities, and promote inclusive growth, all key components of a diversified and dynamic economy,” concluded Al-Ghaith.
The employment growth reflects the Kingdom’s ongoing commitment to transforming its economy into a global hub for innovation, entrepreneurship, and investment.
