PARIS: Vacation rental marketplace Airbnb said guest arrivals in its biggest market Paris rose this summer despite an overall decline in foreign visitors due to security fears, and it now aims to expand into lesser known corners of France.
The online business recorded an annual rise in guest arrivals of 20 percent in the French capital and of 80 percent elsewhere in France between June 1 and Sept. 1 2016, in sharp contrast to the hotel sector, with which it competes.
Hoteliers suffered a marked decline in business that they blame on fears of more Islamist militant attacks, like those that claimed the lives of over 230 people since early 2015.
Foreign tourist arrivals to France could fall 4-5 percent this year and research firm KPMG warned that French hotels could suffer a revenue fall of 10 percent in 2016.
Airbnb country manager for France and Belgium Emmanuel Marill told Reuters in an interview Airbnb had also been hit by the tourism downturn as it had expected growth above 20 percent. “But we resist because we are at the heart of a new phenomenon backed by strong brand recognition,” he said.
The 35-year-old former Facebook executive who took over last month said the site’s resilience in Paris was also down to the fact hosts and travelers can exchange information and hosts can reassure visitors of the safety of their neighborhood.
Founded in 2008 in San-Francisco, Airbnb matches people wishing to rent out all or part of their homes to temporary guests. It appeals to young, web-focused consumers looking for a cheaper price, but also the experience of living like a local.
As Airbnb has rapidly expanded across the globe, it has often come into conflict with local rules and traditional hoteliers, who see it as unfair competition.
With 350,000 listings, France is Airbnb’s second-largest market after the United States, and Paris, the most visited city in the world, is its biggest single market, with 65,000 homes.
Foreign tourists have avoided France since terrorists killed 130 people in an attack in Paris last November. In July, a gunman drove a truck into crowds celebrating Bastille Day on July 14 in the Riviera city of Nice, killing 86.
Repeated robberies against foreign tourists, notably Asian tourists, and an armed robbery against reality TV star Kim Kardashian earlier this month, have added to safety worries.
Despite this, in July, Airbnb said the number of guests lodged in France since it launched there in 2012 had passed 10 million. It had five million guests in 2015 alone, twice 2014’s number. Marill declined to make a prediction for 2016.
EXPANSION PLANS
While 70 percent of Airbnb’s listings were in Paris in 2012, 80 percent are now outside Paris, a trend set to continue.
“The rest of the country will drive growth, notably the mountains and the seaside. Cities like Marseille, Bordeaux or Lyon will drive volumes but the fastest growth will come from lesser known, isolated places which often lack any hotels.”
Once a startup selling cereal, Airbnb is today valued at around $30 billion and has more than 2 million rental listings worldwide. By comparison, hotel group InterContinental has a market value of $7.9 billion.
Europe’s largest hotel group AccorHotels has long warned revenues were under threat from the so-called sharing economy and it has fought back with a flurry of acquisitions and a push into the luxury sector.
As a result of pressure from hoteliers and officials Airbnb agreed to charge visitors the traditional French “tourist tax.”
It began collecting this from guests in Paris in 2015 and now collects it from visitors to 19 towns. Marill said Airbnb aimed to collect it everywhere in France by mid-2017.
He also played down criticism that Airbnb was driving up property prices or contributing to a housing shortage in some cities such as Prague and Berlin.
“We do not want to be a source of housing problems in the big European capitals. But it’s sometimes very hard to identify the professionals using the platform to speculate.”
“We are complementary of hotels,” he said, adding Airbnb was often present in areas without hotels.
“For the cake to grow, we must all work together.”
Airbnb seeks French growth beyond resilient Paris
Airbnb seeks French growth beyond resilient Paris
Saudi entertainment authority launches 3rd startup accelerator to drive innovation
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.
Saudi Arabia’s $2.66bn program aligns industrial incentives with investor demand, says Alkhorayef
- Program aims to empower industrial investments and promote sustainable development
- It seeks to reduce reliance on imports by targeting sectors with high dependency on foreign products and no local production
RIYADH: Saudi Arabia is taking a flexible approach to distributing its SR10 billion ($2.66 billion) standardized incentive program to maximize its impact across industries, according to a senior official.
In an interview with Arab News on the sidelines of the Standard Incentives for the Industrial Sector event, Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef said the program is designed to align with investor demand and deliver optimal returns.
“We are now very flexible with regards to the split between different sectors because we would like to see, you know, how the appetite of the investor and where are the areas where maybe the program needs to focus more and put more effort,” Alkhorayef said.
The SR10 billion standardized incentive program, announced by Alkhorayef in his opening speech, aims to empower industrial investments and promote sustainable development.
Covering up to 35 percent of a project’s initial investment, capped at SR50 million per project, the program seeks to reduce reliance on imports by targeting sectors with high dependency on foreign products and no local production.
The initiative targets at least 200 projects, focusing on industries where the Kingdom relies heavily on imports.
“From the impact, the impact is mainly going to be on the balance of payment where all of the products that we have targeted are products where we have a lot of imports but there is no local production,” Alkhorayef said.
The objective is to “reduce our imports” while enhancing the industrial sector’s capabilities through new products and technologies.
The program is inclusive, accommodating foreign and local investors. “Any investor who registers as a Saudi investor doesn’t have to be a Saudi national, so even foreign investors can tap into this opportunity,” Alkhorayef said.
Two key requirements guide eligibility: the project must align with targeted products listed in the program, and the program will contribute up to SR50 million, not exceeding 30 percent of the project’s total investment size.
To ensure effective fund allocation, an inter-ministerial committee with representatives from the ministries of industry, investment, economy, finance, and energy evaluates each project.
“They look at the different opportunities — what does the project bring to the table in terms of value, and then based on that, it’s allocated,” Alkhorayef said.
Unlike previous models tailored for large-scale projects, the current program has been designed to cater to SMEs.
“Today, we had to really design something that is more approachable by SMEs,” Alkhorayef added.
The minister emphasized the program’s focus on chemicals, automotive, and machinery sectors while maintaining flexibility to adapt to changing investor interests.
As part of Saudi Arabia’s Vision 2030 strategy, the incentive program aims to attract high-value investments, diversify the industrial base, and build a globally competitive manufacturing ecosystem.
