Top 5 takeaways from the FHS Saudi Arabia Advisory Board

Comprising 47 senior hospitality leaders from organisations such as the Ministry of Tourism Saudi Arabia, Taiba Investments, Al Rajhi Bank, Al Othaim Investment, Red Sea Global, Al Nahla Group, NEOM, Accor, Radisson, Rotana, and others driving transformation in our industry, the FHS Saudi Arabia Advisory Board came together in Riyadh to shape the vision for what will be an extraordinary conference on 11 - 13 May 2025 at the Mandarin Oriental Al Faisaliah in Riyadh.

The 2025 conference theme: “Where Vision Shapes Opportunity” was unveiled under which hospitality leaders and decision-makers will unite to discuss hotel performance and development, the outlook for hospitality investment in Saudi Arabia and the key market trends driving the sector, aiming for actionable outcomes that will transform the industry, which continues to witness unprecedented growth.

Here are the top 5 takeaways from the meeting that will impact the future of hospitality in Saudi Arabia:

1. Saudi's Hospitality Revolution is Real

Hold onto your hats – the Kingdom is not just entering the global hospitality scene; it's about to take center stage. Data shared by STR shows that Saudi Arabia's room revenue is up by a massive 26.3%, with Riyadh leading the pack, boasting a 16% increase in ADR. While Jeddah's market faces challenges, the Advisory Board believes the city can unlock its full potential by focusing on renovating existing hotels and attracting new, high-quality developments.

2. Luxury? It's Not What You Think

The Advisory Board sparked a fascinating discussion on redefining luxury in Saudi Arabia. Forget conventional star ratings! The consensus is that true luxury lies in authenticity, heritage, and soulful experiences. FHS Saudi Arabia 2025 will explore how the industry can create truly luxurious and unique offerings that capture the essence of Saudi Arabia's renowned hospitality.

3. Religious Tourism: The Hidden Gold Mine

With religious tourism growing at an incredible pace, the conference will explore the sector's vast, untapped potential. The conversation will encompass investment opportunities, diversifying offerings beyond accommodation, and strategies for gateway cities like Jeddah to benefit from this influx of travellers seeking enriching cultural and religious experiences

4. Talent is Our Ultimate Superpower

Talent is key to achieving Saudi Arabia's ambitious growth targets. According to Saudi Tourism Development Fund, the tourism sector aims to create 1M jobs by 2030. The Advisory Board stressed the need to bridge the gap between education and industry needs. Our programme will tackle pressing issues, including:

• Industry Alignment: Creating education programs that meet the evolving needs of the hospitality industry.
• Investing in Vocational Training: Focusing on practical, frontline professional training to meet immediate demands.
• Attracting and Retaining Talent: Exploring innovative solutions to address high turnover rates and make hospitality a career of choice

5. Sustainability: It's Not Just Nice, It's Necessary

Sustainability is no longer a trend; it's a fundamental requirement for success. According to Glenn Mandziuk (CEO, World Sustainable Hospitality Alliance), while most people associate food waste with buffets, which account for approximately 5% of the waste, a staggering 84% actually originates from back-of-house food preparation. FHS Saudi Arabia 2025 will showcase the ROI of sustainable practices, from financial returns to attracting and retaining talent. Expect insightful discussions on tackling food waste, a major area for improvement, with practical solutions for hotels.