Saudi Arabia is starting a 1.5 billion-riyal ($400 million) fund to expand the hospitality brand Habitas across the kingdom. The hotel and events company, which has its roots in creating camps at the Burning Man festival in the Nevada desert, plans to have as many as six new properties throughout the kingdom, in addition to two existing ones. The details aren’t finalized, but sites could range from the Red Sea coast to the inland capital of Riyadh. The aim is to attract new international visitors to Saudi Arabia as well as locals that haven’t done much domestic traveling.
The funding will be anchored by the Saudi Tourism Development Fund, or TDF, which was established in June 2020 with an initial pot of 15 billion riyal to finance the industry’s growth. The kingdom’s goal is to more than double the number of tourists, to 100 million annually by 2030, including domestic travel, and increase tourism’s share of the economy from 3 per cent to 10 per cent, according to a document on the fund’s website. A spokesman for the TDF declined to answer questions for this story.
Saudi officials have said they’ll commit at least $1 trillion creating enticing destinations in the country and expanding the tourism industry. The Habitas investment, ventures such as a new luxury airline, and a $500 million e-sports destination are part of the broader strategy. Saudi Arabia has almost 99,000 hotel rooms in the pipeline from various stages of development, according to figures from April from hotel data company STR. Hotel circuits are becoming increasingly popular with travelers who want to see a swath of a country and have varied experiences while staying within one brand’s familiar confines – with all the transfers and logistics sorted out. Habitas’ circuit, if completed, could be one of the most comprehensive in the world.
Habitas a company that grew out of camps at Burning Man and has a manifesto for “like minded souls” with the six newly announced locations, 40 percent of the company’s current and upcoming properties will be in the kingdom. So far, it has found some success in AlUla, a desert oasis in northwest Saudi Arabia where it opened a boho luxe property with a mixed gender infinity pool in 2021. Ripley says Habitas AlUla is 60 percent full in the summer of those who are coming, about 80 percent are local.
Saudi Arabia’s plan to invest in expanding the Habitas hospitality brand aligns with the country’s tourism goals. With the support of the Saudi Tourism Development Fund, this initiative aims to attract international visitors and encourage domestic travel. BM Events Casual Staffing Company, an on-demand hospitality staffing agency, complements this effort by providing skilled staff for hotels and events. Together, they contribute to the growth of the hospitality industry, supporting Saudi Arabia’s vision of becoming a premier tourist destination.
