DUBAI: The Public Investment Fund subsidiary ASFAR is set to launch new tourist attractions by early next year, reinforcing its commitment to economic growth and diversification, according to CEO Fahad bin Mushayt.

In an interview with Arab News during the Future Hospitality Summit in Dubai, Bin Mushayt said that the latest destination will debut in Al-Baha by the beginning of next year.

ASFAR, which has been operational for nearly two years, is collaborating with investors to enhance the Kingdom’s tourism sector by focusing on eight key destinations aligned with the Ministry of Tourism’s strategy.

While ASFAR does not directly develop these projects, it leverages its robust investment strategies and tourism expertise to partner with other companies, creating new opportunities in the sector. Among its projects are locations in Hail, Al-Baha, Yanbu, Al Hasa, Taif, and Al Jouf.

“Since we started, we are now active in five destinations,” the CEO stated.

In Al-Baha, ASFAR is developing two resorts, with a soft opening anticipated in the first quarter of 2025.

He said the company is “building almost 150 keys across two distinct locations, each offering unique experiences.” The top executive said one “caters to parents and couples, while the other targets the youth with an adventure park combined with hospitality.”

Describing Al-Baha as a “beautiful destination atop the mountains, known for its greenery and mild climate averaging around 20 degrees year-round.”

Bin Mushayt also highlighted plans for Taif, located two hours from Al-Baha, focusing on religious tourism due to its proximity to Makkah.

“We’re targeting religious tourism by building a wellness resort, allowing visitors to reaffirm their spiritual needs while enjoying the local scenery and mountains, just 30 to 40 minutes from Makkah,” he elaborated.

In Yanbu, a coastal city on the Red Sea about two hours from Jeddah, additional developments include a lifestyle hotel, beach club, beach resort, and tourism center featuring food and beverage options, retail, a diving academy, and marine activities. “Yanbu is known as one of the best diving areas in the world,” Bin Mushayt noted.

Further projects are also underway in Al Hasa and Hail, scheduled to open in 2025 and 2026.

Tourism is a key component of Saudi Arabia’s Vision 2030, aimed at diversifying the economy beyond oil revenues.

Bin Mushayt highlighted the sector's growth, stating, “Tourism is currently growing at nearly double-digit rates, contributing significantly to the GDP.”

ASFAR’s initiatives also aim to create jobs and stimulate the overall economy, with aspirations of generating around 250,000 jobs in the tourism sector by 2030.

The company is also investing in transportation, casual dining, and the development of destination management and tour operator companies to enhance visitor experiences.

Bin Mushayt emphasized the importance of local content and community involvement in these projects. “We prioritize using local materials and supporting small and medium enterprises within the destinations,” he said.

He further noted that “many family-oriented products and services will also be offered,” driving economic activity and development through tourism.

Expressing enthusiasm for Saudi Arabia’s goal of attracting 150 million annual visitors, he stated that ASFAR aims to welcome at least 5 million visitors to its destinations.

DUBAI: Rotana Hotels is set to expand its footprint in Saudi Arabia by establishing hotels in secondary and tertiary cities over the next two years.

CEO Philip Barnes outlined plans for nine additional hotels, reflecting a strategic shift toward less explored locations in the Kingdom.

“We’re looking to grow by probably another nine hotels over the course of the next two years,” Barnes shared with Arab News at the Future Hospitality Summit in Dubai, emphasizing the brand’s commitment to smaller, developing cities.

Barnes highlighted recent openings, including an Edge hotel in Riyadh and a new property in Madinah, but noted the focus is now on expanding into areas often overlooked by international chains. “We’re moving into what I would consider to be more tertiary and secondary cities within Saudi, which for us is tremendous because that’s what we want to be — a strong regional brand,” he explained.

While the specific locations of the new hotels are not yet disclosed, discussions with various developers and owners are in progress. This local-centric expansion aligns with Rotana’s deep regional roots. “We were born in the region. We’ve grown up in the region. We are the region,” Barnes stated, emphasizing the brand’s understanding of local culture as a key advantage.

“There’s a familiarity with owners and developers. We come in with a perspective unique to the region, not influenced by American, British, or French models,” he added. This cultural awareness is crucial for developers, as Rotana’s insights into local markets enhance their comfort level. “We know how things work in the region, and that’s become more important for a lot of developers,” Barnes noted.

As Saudi Arabia positions itself on the global tourism map, Barnes sees the country rapidly emerging as a key player in the hospitality sector. He reflected on the improvements in accessibility and infrastructure since his earlier experiences in the Kingdom. “Back in 2019, I had to go to the embassy to get a visa. Now, the visa is automatically online. The whole transition is becoming easier,” he remarked.

Saudi Arabia is making strides to establish itself as a world-class destination, boasting a rich cultural heritage, which is vital for attracting international visitors. Barnes shared his impressions of Riyadh’s transformation: “Driving down the street at 10 at night in Riyadh, I could have been anywhere in the world. The streets were packed, the restaurants were busy. There was life, energy, and passion.”

This vibrancy, combined with a strategic push to showcase cultural heritage, is driving investment and tourism. “People are getting a lot more comfortable with Saudi. It has the history, it has the culture. As Saudi (Arabia) puts itself more on the world stage, you’re going to see more of that,” he explained.

Barnes compared Saudi Arabia’s growth to that of successful tourism destinations in the past, noting a similar pattern emerging in the Middle East. “People are looking for new and interesting places that have culture and history, and Saudi has all of that to offer,” he remarked, predicting that Saudi (Arabia) will make a significant impact on the global tourism landscape in the next few years.

Looking forward, Barnes acknowledged the increasing role of technology and artificial intelligence in hospitality, while underscoring the importance of human interaction.

“AI is becoming more prominent. We’ve appointed a CIO who is well-versed in AI and is looking at how we can enhance the guest experience,” he noted, highlighting the use of AI for streamlining processes like booking and customer service. However, he stressed that technology cannot replace the personal touch.

“The hospitality industry is about people. AI can’t replace the doorman who gives you a warm smile and greets you by name. It’s the human touch that makes you feel special, and AI won’t do that,” Barnes concluded.

As Rotana advances its expansion plans in Saudi Arabia, the company’s deep understanding of local markets and commitment to guest experience positions it well to benefit from the country’s tourism boom, playing a central role in the rapidly growing hospitality sector.