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
Oman’s import price index up 1.1% in Q3 2024
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.
Saudi Arabia de-risks investments to attract foreign SMEs: Al-Falih
- Initiative seeks to empower industrial investments and foster sustainable development
- Program also aims to build value chains by encouraging international SMEs to collaborate with local Saudi firms
RIYADH: Saudi Arabia is de-risking investments for foreign small and medium-sized enterprises to encourage their entry into the Kingdom, according to a senior official.
In an interview with Arab News on the sidelines of the Standard Incentives for the Industrial Sector program, Saudi Minister of Investment Khalid Al-Falih said the initiative aims to attract international SMEs that have for decades been integral to supply chains in their home countries.
The announcement follows a joint effort by the ministries of industry and mineral resources and investment to allocate SR10 billion ($2.66 billion) to activate standardized incentives for the industrial sector.
This initiative, approved by the Cabinet last month, seeks to empower industrial investments, foster sustainable development, and enhance Saudi Arabia’s global industrial competitiveness.
“De-risking is a key component. Come to Saudi Arabia. We will de-risk the investment for you,” Al-Falih said, emphasizing the government’s commitment to creating a business-friendly environment.
He added: “We will do matchmaking with the Saudi investors, and then they can, hopefully, recreate, and maybe we innovate with them to do something bigger for what they are doing in their home country.”
The program also aims to build value chains by encouraging international SMEs to collaborate with local Saudi firms, fostering innovation and shared growth.
“I think the Kingdom has been doing well in attracting large multinationals. However, when we go to Germany, we find out 70 to 80 percent of the German GDP is by SMEs, who may only operate in Germany and Europe. They don’t know the Middle East. They don’t know Saudi Arabia,” Al-Falih said.
“As we build these value chains, we need to help our SMEs in Saudi Arabia by bringing with them some international SMEs that have been doing some of this production and manufacturing, feeding the large OEMs (original equipment manufacturers) for decades in their own home country.”
While Saudi Arabia has successfully attracted large-scale investments in multibillion-dollar projects like the green hydrogen initiative, Lucid, and Ceer, Al-Falih noted that mid-sized companies face unique challenges. These include a lack of credit history, limited local ecosystems, and rising costs of funding and production.
“By us having this tool available to us, if it’s a new product, differentiated product, that will plug a missing component or a link in a value chain, we can do it quickly, and these companies will be able to bridge that gap and move quickly, so that’s the intention,” he said.
The initiative aligns with the Kingdom’s collaborative government approach, with policies shaped by the Localization and Balance of Payments Committee chaired by Crown Prince Mohammed bin Salman.
The program also takes advantage of Saudi Arabia’s geographic location — connecting three continents — its open market, and low customs tariffs to attract international and local investors.
Al-Falih described the incentives as a significant step toward achieving Vision 2030’s goals and the National Investment Strategy, which aim to attract and develop industrial investments while elevating the Kingdom’s industrial competitiveness.
Saudi Arabia allocates $2.66bn to activate Standard Incentives Program for the industrial sector
- Initiative seeks to spur growth in industrial sector by accelerating investments and achieving sustainable industrial development
- Program divided across project lifecycle, granting 50% during construction and remaining 50% during production
RIYADH: Saudi Arabia announced the allocation of SR10 billion ($2.66 billion) to activate the Standard Incentives Program for the Industrial Sector, followed by approval from the Council of Ministers last month.
The announcement was made during the Standard Incentives for the Industrial Sector event on Jan. 11.
According to a press statement, this initiative seeks to spur growth in the industrial sector by accelerating investments and achieving sustainable industrial development in the Kingdom to elevate the competitiveness of Saudi industries globally.
Developing the industrial sector is crucial for Saudi Arabia as the Kingdom, under its Vision 2030 program, is pursuing an economic diversification journey by reducing its dependence on oil revenues.
“These incentives were developed within the framework of an integrated governmental effort, characterized by collaboration with various relevant government entities, particularly the pivotal role played by the Localization and Balance of Payments Committee,” said Saudi Arabia’s Minister of Industry and Mineral Resources Bandar Alkhorayef.
He added: “This committee serves as the overarching body for shaping policies, directions, and initiatives that enhance the empowerment of industrial investments and support national talents.”
The press statement added that the incentives program offers coverage of up to 35 percent of the initial project investment, capped at SR50 million for each qualifying initiative.
The program is divided evenly across the project lifecycle, granting 50 percent during construction and the remaining 50 percent during production.
The press statement added that the first phase of this program will target investments in chemical conversion industries, the automotive sector, and machinery and equipment.
The incentives program will be rolled out to other industry segments in subsequent phases in the latter part of this year.
“This program is the first of its kind in the region and aims to enable the manufacturing of products that are not currently produced in the Kingdom. It opens new horizons for high-quality investments and allows both local and international investors to benefit from the unique capabilities the Kingdom possesses,” said Alkhorayef.
He added: “The Standard Incentives Program has been designed to focus on achieving localization and local content targets, as these are fundamental elements for sustainable development.”
The minister further highlighted that through the program, Saudi Arabia aims to empower industries that enhance the utilization of the Kingdom’s natural resources and increase reliance on local talent, contributing to reducing imports, strengthening the balance of payments, and fostering economic resilience.
During the event, Saudi Arabia’s Minister of Investment Khalid Al-Falih said that the Standard Incentives Program marks a significant step toward realizing the objectives of the Kingdom’s Vision 2030 and National Investment Strategy.
“The program seeks to achieve the Vision 2030 goals in the short and medium term, including increasing non-oil exports to 50 percent of the size of the non-oil economy and localizing critical materials essential to the economy,” said Al-Falih.
He added: “Today, the industrial sector contributes to an investment that accounts for 40.8 percent of the gross domestic product. The industrial sector accounts for approximately 30 percent of foreign direct investment.”
Al-Falih further noted that most of the licenses granted by the Ministry of Investment to international companies are in the manufacturing industries sector.
The investment minister added that 571 international companies have opened their regional headquarters in the Kingdom, most of which are industrial firms.
“We will provide these companies with enablers and incentives through various programs. Our role is not just to promote ourselves but also to enable various sectors to be competitive and ensure that all key sectors, as everyone has mentioned — starting with the industrial sector— are indeed attractive for investment,” said Al-Falih.
According to the press statement, Al-Falih said that these incentives, in their current form, are expected to energize the industrial movement in the Kingdom.
The investment minister added that projections indicate that the initiative is expected to generate an estimated SR23 billion annually in GDP from the targeted projects.
During the event, Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman said each sector should understand its role in achieving its objectives.
He added that the Standard Incentives Program aims to launch economically viable projects, ensuring sustainable development in the Kingdom.
“Through this program, we also aspire to achieve sustainability by launching economically viable projects, creating quality job opportunities for Saudi men and women, and fostering innovation and creativity in industrial sectors,” said the energy minister.
He added: “We believe this methodology, centered on empowering industrial projects, will contribute to the gradual expansion of these investments, broadening the industrial base for both investors and the Kingdom as a whole.”
The energy minister further underlined that these initiatives, in the future, will grow into leading companies that enrich the national economy, diversify income sources, steady the balance of payments, and boost non-oil exports.
Faisal Al-Ibrahim, Saudi Arabia’s minister of economy and planning, said that the program has been developed to grow and deepen the industrial base, which will significantly impact the overall non-oil economy.
“We look forward to seeing non-oil activities increase in number and become more sustainable. Therefore, it is important to design these incentives in a way that does not create additional dependency on them,” said Al-Ibrahim.
He added: “Instead, they should create dynamism in the private sector, enabling it to mature and reach a stage where it grows, continues to produce, and competes sustainably.”
According to Al-Ibrahim, the nation wants to create a dynamic private sector that relies on itself and benefits from the incentives program.
“We measure success through the creation of high-quality jobs, increased productivity, higher non-oil exports, and an overall increase in investment in the Kingdom, leveraging global value chains,” added Al-Ibrahim.
During the event, Hamad Al-Sheikh, minister of state and member of the Council of Ministers, said that the objective of the program is to equip the industrial sector and investors in the Kingdom.
“The goal is to empower the industrial sector and investors, ensuring clarity regarding application mechanisms, evaluation criteria, and a clear process for prioritization in case multiple investors apply for the same opportunity,” he said.
Al-Sheikh added that the program aims to encourage new waves of small and medium-sized factories to produce innovative and economically prioritized products for the national economy.
He concluded that the incentives program promotes technology transfer and is expected to improve the trade balance through local production.
