Sean Young's presentation at DEAL Live by blooloop 2017 on the impact of Saudi's Vision 2030

1. Draft for Discussion
Destination Saudi – The Impact of Vision 2030
Seán Young, Head of Destination Consulting

2. Draft for Discussion
Colliers International 2017 2
Contents
• Colliers International
• Vision 2030
• Positive Market Dynamics
• Supporting the Growth of Tourism &
Leisure
• Key Projects
• Challenges & Opportunities

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Colliers International 2017
Colliers International

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Colliers International 2017
Colliers International Destination Consulting
Attractions / Theme Parks / Water Parks / Museums / Malls / Resorts / Zoos / Event Venues.
More than 2,000 projects across the world over 25 years:
Selected Regional Projects
• Ayla Resort Entertainment, Jordan
• Mishkat Science Centre, KSA
• King Abdulaziz Centre for World
Culture, KSA
• KAEC Leisure District, KSA
• Jubail Waterpark, KSA
• Riyadh Adventure Park, KSA
• Misk Museum, KSA
• Doha Zoo, Qatar
• EIA of Cultural Tourism, Qatar
• Saadiyat Island Museums, UAE
• Dubai Riverland, UAE
• Mall of the World, UAE
Selected Other Projects
• Chester Zoo, UK
• Brussels Aquarium, Belgium
• Petronas Towers Visitor Experience,
Malaysia
• Odyssey Arena Belfast, Ireland
• National Art Gallery Singapore
• Waterpark Turkey
• Vernisaz Entertainment Centre, Riga
• Olympic Park Entertainment, UK
• O2 Arena London
• IMAX Cinema, UK
• Shanghai Winter Wonderland, China

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Colliers International 2017
Vision 2030
AnAmbitious
Nation
ThrivingEconomy
VibrantSociety
Living by
Islamic
Values
Focusing
Efforts to
serve Umra
Pilgrims
Investing for
Long Term
Rewarding
Opportunities
Leveraging its
Unique Position
Effectively
Governed
Responsibly
Enabled
Leveraging its
Unique
Position

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Colliers International 2017
Vision 2030
“We will support promising sectors and foster their success so that they
become new pillars of our economy…
In the tourism and leisure sectors, we will create attractions that are of
the highest international standards, improve visa issuance procedures for
visitors, and prepare and develop our historical and heritage sites.”
Vision 2030

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Colliers International 2017
Vision 2030
“We are well aware that the cultural and entertainment opportunities
currently available do not reflect the rising aspirations of our citizens and
residents, nor are they in harmony with our prosperous economy.”
“We will allocate prime areas within cities for educational institutions,
retail and entertainment centers, large areas along our coasts will be
dedicated to tourist projects …..”
Vision 2030

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Colliers International 2017
Vision 2030
Source: Meed.com

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Positive Market Dynamics

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Colliers International 2017
A Large and Fast Growing Population
2015
31.5Million
31.5Million
2025
19.4%
GROWTH of
OVER 10 YEARS
37.6Million

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Colliers International 2017
A Young Population
57% of Saudi Nationals are under the age of 25 with increasing
aspirations for quality leisure and entertainment experiences

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Colliers International 2017
Increasingly Affluent Population
22%
4%
44%
25%
9%
>$100,000 $55,000-
100,000
$25,000-
55,000
$10,000-
25,000
<$10,000
Annual Household Income
16.0%
Average monthly expenditure of a Saudi
household in 2013 was SAR 15,367 a
increase on 2007

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Significant Tourism Growth Potential
Inbound tourism forecasts
2016 2026 CAGR
Tourists 20.2m 32.3m 4.8%
Spend (SAR) 32.8bn 55.9bn 5.2%
Source: WTTC, 2016
Domestic tourism forecasts
2015 2020 CAGR
Tourists 46.5m 66.2m 7.4%
Spend (SAR) 47.9bn 82.6bn 11.5%
Source: MAS, 2016

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Umra Pilgrims – a target sector for leisure and cultural
Umra Pilgrims – Growth Scenarios
Source: Ministry of Hajj & Colliers International Projections

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Significant Lack of Supply
• A significant lack of out-of-home culture,
leisure and entertainment
• Existing offer limited to public parks, malls,
festivals and traditional museums
• But beginning to change – KidZania, Snow
City and King Abdulaziz Centre for World
Culture
• Six Flags entering the market

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Colliers International 2017
Consumer Leisure Behaviour
• Heavy social media users- average Saudi
consumer owns 2.3 connected devices, with
average 9 out of 10 Saudis own a smartphone
(Source: Google 2016)
• Evening dominated leisure market
• Congregation and socialising in appropriate
public environments including cafes, malls, etc.
• Very high footfall at Malls – Kingdom Mall 8
million, Riyadh Gallery c. 14 million, Mall of
Arabia 16 million, Red Sea Mall 15.6 million
• Weekend homes (also known as “Istirahas”)
usually located at the outskirts of the city
• Popularity of parks & bbq

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Supporting the Growth of Tourism & Leisure

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Supporting the Growth of Tourism & Leisure
Investment in major transport infrastructure - airports
King Abdulaziz Int’l Airport (Jeddah)
Prince Mohammad Bin Abdulaziz Airport
(Madinah)
Expected to
handle a total of
80 million annual
passenger
capacity by 2035
Expected to
handle a total of
27 million annual
passenger
capacity

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Supporting the Growth of Tourism & Leisure
Rail Infrastructure Haramain High Speed Rail line (2018)
Totalof 450 km
Makkah
Station
Jeddah
Central
Station
King
AbdulAziz
Int’lAirport
KAEC
Station
Madinah
Station
65km 25km 105km 255km
20Min 10Min 28Min 75Min
Makkah Jeddah KAEC Madinah
Distance
Trip Time
HARAMAIN HIGH SPEED RAILWAY
Key HHRS facts:
Maximum Annual Capacity: 20 million
passengers
Maximum Speed: 300 km/hr
Makkah-Madinah = 2.25 hours
Makkah-Jeddah Airport = 30 minutes

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Supporting the Growth of Tourism & Leisure
• Increased capacity at the
Holy Mosques in Mecca to
reach 2.5 million
worshippers
• Increased capacity at the
Holy Mosque in Madinah
to reach 1.5 million
worshippers
Growth of Tourism
& Leisure
• Introduction of the ‘Umrah
Plus’ Visa which allows
Pilgrims to travel around
KSA for up to 30 days
• Significant private sector
investment in hotels and
resorts
• Investment in parks, attractions,
festivals and other recreational
activities
• investment of over USD 13
million/year on the preservation
of heritage sites
• Gradual opening to new forms
of leisure, entertainment and
cultural activities e.g. the
successful ILuminate Show in
Riyadh in summer 2016

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Recent and Planned Projects

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Recent Cultural Projects
Mishkat Science Centre
King Abdulaziz Centre for World Culture
Old Dir'aiyah Heritage Park

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Pipeline Cultural Projects
• National Park development,
Riyadh
• Islamic Faith Museum, Mecca
• National Museum
redevelopment, Riyadh
• Natural History & Science
Museum, Riyadh
• Prince Salman Science Oasis,
Riyadh
• Madinah Welcome Center
• Number of new cultural
attractions proposed for the
Financial District, Riyadh

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Recent Leisure Projects
Snow City Riyadh KidZania Jeddah

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Pipeline Leisure Projects
• Theme Park, Safari Park &
Water Park, KAEC
• Theme Park & Adventure Park,
Wadi Al Asla, Jeddah
• Indoor Waterpark, Jubail
• Six Flags Theme Park, Riyadh
• KidZania Riyadh
• KidzMondo Riyadh
• Knowledge Economic City
Madinah Leisure Park

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Saudi Arabia 2017 – Major Events
• Comic Con
• Cirque De Soleil
• Grand Moscow Show
• Monster Jam
• Tom & Jerry Musical
• Oprah’s Life Class
• Marvel Universe Live
• The Golden Age of Circus
• Shrek the Musical
• An Evening with Al Pacino

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Challenges & Opportunities

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Challenges
• Cultural Fit
• Climate
• Repeatability
• Religious Pilgrims
• Gender Segregation –
physical and/or temporal
• ‘Saudization’
• Staff Recruitment and Training
• The Power of Social Media and
Word of Mouth Marketing

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Key Development Opportunities
• Theme Parks
• Zoos and Safari Parks
• Indoor and Outdoor Adventure
Activities
• Commercial Family Attractions
• Touring Exhibitions
• Car-related attractions
• Retail, Dining and Entertainment
(RDE) Zones
• Festivals & Events
• Cinema?

30. CONTACT DETAILS:
Seán Young
Colliers International Destination Consulting
50 George Street
London
W1U 7GA, UK
email: sean.young@colliers.com
Mb: +44 7798 838307
www.colliers.com/uk/DestinationConsulting
Colliers_DesCon