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Vacant hotel rooms, furnished flats in Jeddah scarce
Published in The Saudi Gazette on 22 - 01 - 2013


Saudi Gazette report

JEDDAH — As tourists from all over the country flock to the city, getting accommodation in hotels and furnished apartments has become an uphill task. With the onset of spring, occupancy rates in Jeddah hotels and furnished apartments has almost touched the 100-percent mark, Al-Eqtisadiah Arabic daily reported recently quoting sources in the tourism industry.
Since accommodation has become difficult to secure, visitors have complained that hotels and furnished apartments are exploiting the spike in demand by charging exorbitant rates. The Saudi Commission for Tourism and Antiquities (SCTA) has admitted there was a crisis in Jeddah for the past few days and has asked its partners in other sectors, particularly the Jeddah Municipality, to solve all problems hindering the issuance of licenses to accommodation facilities. It also appealed to businessmen to invest in the construction of accommodation facilities including hotels and furnished apartments. The commission said Jeddah needs a 40 percent increase in investment in tourism-related facilities in the coming three years in order to meet the increase in demand.
Mishari Al-Ahmad, 52, is a domestic tourist visiting Jeddah with his family. Al-Ahmad said he has had trouble finding suitable accommodation for his family since most places are asking for charges not commensurate with the level of service provided. “I have faced great difficulty finding a place to stay for my family. I am not willing to pay what most furnished apartments are asking. The situation is quite infuriating — we spent 12 hours looking for a place to stay and finally ended up staying in a rundown building because there was no other alternative,” he said.
Executive director of tourism in Makkah region, Muhammad Al-Amri, stressed that public and private sectors must strive to make domestic tourism a success.
“Jeddah has become the preferred tourist destination in the Kingdom. The role of the SCTA is to increase the internal flow of domestic tourism, which in turn catalyzes the economy. The more active tourism becomes, the bigger the boost the economy in the region receives. This is beneficial for all whether it is the airlines, taxi drivers, rent-a-car offices, accommodation facilities, markets, recreation centers and restaurants. But to make sure the SCTA's goals are a success, we must have the right infrastructure and this means having sufficient hotels and furnished apartments to handle the influx of tourists,” he explained.
As for the high rates being charged by many accommodation facility owners, Al-Amri said eight teams covering Jeddah supervise hotels and furnished apartments to make sure they don't exploit visitors.
Al-Amri said written complaints along with receipts can be sent to Fax No. (02)420-3344 or through the tourist hotline 800-755-0000 or by visiting the headquarters of the SCTA on Prince Sultan Bin Abdul Aziz Road north of Al-Tarikh roundabout.
Meanwhile, Muhammad Al-Nefei, Deputy Chairman of the Tourism Committee at the Jeddah Chamber of Commerce and Industry (JCCI), acknowledged that occupancy rates are very high if not 100 percent. He said the main reason tourists are unable to find suitable accommodation is due to lack of planning.
“People don't make reservations beforehand. They just decide to book a flight and worry about finding a place to stay upon arrival. With that said, we do have shortage of hotels and furnished apartments. There is great demand for 3- and 4-star hotels but there is also a huge shortage of them. The reason for the shortage is that investors are reluctant to invest in the accommodation sector due to the many permits and procedures required. Just getting the necessary permits can take six months or more while the same permits are granted in 2 or 3 days in neighboring Arab countries,” he said.


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