Saudis to spend $9.6bln on entertainment by 2030, authority says

The entertainment industry in Saudi Arabia is poised to boost diversification of the state’s revenues with consumer spending on the sector expected to reach 36 billion Saudi riyals ($9.6 billion) by 2030, a Saudi official said.

Speaking at the World Government Summit in Dubai, Faisal Bafarat, the chief executive officer of the Saudi General Entertainment Authority (GEA) said that the entertainment sector in the kingdom is also expected to generate 114,000 direct and 110,000 indirect job opportunities by 2030, according to the authority’s official twitter account.

“We want to put Saudi on the global entertainment map, so keep your eyes open for 2018. The target is to have at least one top tier international event every weekend in 2018,” Bafarat said.
“In 2017, there were more than 2,000 events. We were able to entertain more than 8 million audience, and we managed to enable 149 event providers and vendors,” he added.

Saudi Arabia plans to create a thriving domestic tourism and entertainment sectors to redirect some of the $22 billion Saudis spend on tourism outside of the kingdom back into the local economy. (Read more here).
The kingdom set a clear target to increase household spending on entertainment and cultural activities inside the country from 2.9 percent to 6 percent by 2030, according to its Vision 2030 economic overhaul plan.

http://vision2030.gov.sa/en/goals

“To realise the Vision 2030, there were 12 different programmes, and the key program for entertainment was the quality of life,” Bafarat added.

In December, Saudi Arabia lifted a 35-year old ban on cinemas, and theatres will be able to start showing films next month. More than 300 cinemas are expected to open by 2030, according to the government, contributing around $24 billion to the economy.

(Reporting by Nada Al Rifai; Editing by Michael Fahy)
13 FEBRUARY, 2018
https://www.zawya.com/

Construction, tourism and jobs growth boost Dubai’s economy

Dubai’s economy recorded stronger business activity in January on the back of faster output and new orders, driven by the construction, travel and tourism and retail sectors.

Emirates NBD’s Dubai Economy Tracker Index rose to 56.0 in January mainly on the back of faster output and employment growth after easing in the previous month. The output/business activity index rose sharply to 61.0 last month, the highest reading since July.

The employment index rose to 52.3 in January, and while this does not indicate a staggering number of new jobs created, the reading is the strongest since November 2015, Emirates NBD in its research note released on Sunday.
The survey results revealed that new orders rose sharply in January although at a slightly slower rate than in December. Stocks of pre-production inventories also increased at a slower rate, as many firms would have boosted purchased in December ahead of the introduction of value-added tax (VAT).

“The impact of the new tax is evident in the sharply higher input cost index [59.2 in January from 51.7 in December]. However, the selling price index only rose 1.7 points last month, to 52.2, suggesting that not all firms passed on the full impact of VAT to purchasers. In fact in the travel and tourism sector, prices were close to unchanged from December, suggesting that the full impact of VAT was absorbed by firms in this sector,” said Khatija Haque, head of Mena research at Emirates NBD.
After a relatively soft fourth quarter of 2017, the travel and tourism index rose to its highest level since July at 55.7. Output surged (58.1 from 52.1 in December) as did new work (58.1). Employment in the sector also increased at the fastest rate since March 2015, with this sub-index rising to 53.5 in January.

The Dubai survey data may seem to be at odds with the whole UAE PMI survey as the index rose while the UAE PMI declined slightly in January. This is likely due to the fact that construction, travel and tourism and wholesale and retail trade, which all posted faster growth in output, new work and employment in January, account for a much bigger share of Dubai’s economy relative to their share of whole UAE GDP.

“The rise in the Dubai Economy Tracker Index signals a strong start to 2018, despite the introduction of VAT putting upward pressure on both input and output prices. The construction sector had a particularly strong month in January, and this supports our view that construction will be a key driver of Dubai’s growth this year,” Haque added.

The wholesale and retail trade sector index rose 1.2 points in January to 56.1, indicating a solid rate of growth, despite the introduction of VAT.

By Waheed Abbas, Khaleej Times
11 FEBRUARY, 2018

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Bahrain retail sector ‘valued at more than $5.8bln’

Country’s retail sector has been growing steadily over the past decade at an annual rate of 13%

MANAMA: Bahrain’s retail market is valued at more than BD2.2 billion ($5.8bln) per year and the sector outlook is positive for 2018 and beyond, finds a new study by KPMG.

Another key finding of the study highlighted in a report titled “Tourism: A Game Changer for the Retail Sector in Bahrain”, is that the country’s retail sector has been growing steadily over the past decade at an annual rate of 13 per cent.

During the 2007-17 period, the increasing population coupled with household income growth, as well as the inflow of tourists from Saudi Arabia, have led to the tripling of retail capacity between 2007 and 2017.

Elaborating on the findings, KPMG in Bahrain head of management consulting Kenan Nouwailati told the GDN that tourism plays a significant role in the performance of retail in Bahrain.

“At least 65pc of tourists in Bahrain arrive from Saudi Arabia, accounting for the dominant revenue share for retail businesses. Cinemas, food courts and family entertainment centres in Bahrain’s shopping malls are the main attractions for the Saudi visitors coming from the Eastern Province and Riyadh.”

According to the report, the 10 largest malls in Bahrain are located in prime areas and account for a total footfall of 51 million visitors per year and enjoy high occupancy levels ranging between 95pc and 100pc.

However, the average number of retail square metres per resident is less than half in comparison with global cities such as New York and Dubai, and is more comparable with cities like Singapore and Hong Kong.

This means the local retail market has still not reached full maturity, which indicates positive signs for growth potential.

“With increasing investment in infrastructure and malls, especially in the Northern part of the island, we expect the sector to continue to grow at the same rate in the next two to five years,” added Mr Nouwailati.

The report also highlighted how tourists’ spending patterns differ, according to the number of days they spend in the country.

On average, tourists arriving via Bahrain International Airport tend to stay four days longer than those arriving through King Fahad Causeway.

Up until 2017, the latter group accounted for more than 90pc of one-day visitors per year.

As a tourist destination, Bahrain has an average length of stay of 2.6 days compared with 4.2 days in benchmark cities, such as Dubai, New York, Paris, Hong Kong, Singapore and London.

Hence, there is a huge opportunity to increase revenues for public and private stakeholders in the retail sector, if tourism, including the number of tourists and the length of stays, are improved.

According to him, if Bahrain can attract an additional 1m tourists and increase the average stay length to 3.6 days, the country could generate BD300m of additional revenue from tourists’ expenditure on the retail sector only.

Looking forward, it reflects on six breakthrough ideas to help grow the retail market through tourism.

They are: Redefining the pillars of the tourism strategy; Enhancing the hospitality offering; Developing new events and festivals; Investing in revenue generating assets; Developing partnerships with travel agencies based in the GCC and Promoting Bahrain online.

By Staff Writer, Gulf Daily News, 06 FEBRUARY, 2018
© Copyright 2018 www.gdnonline.com

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