Religious tourism in Saudi Arabia is expected to drive revenue streams across the hospitality sector as performance in Riyadh and Jeddah slow down.
During the second quarter, the average occupancy rates in Mecca and Medina rose by 13% and 4% Y-o-Y, while those in Riyadh and Jeddah declined by 12% and 4 % respectively according to the latest Saudi report from Colliers International. 
In June 2016, Mecca hotels reported a 24% increase Y-o-Y in the average occupancy rate to 80.7% due to increased demand throughout Ramadan with the report highligting that the average daily rate was $467 – representing a 70% Y-o-Y increase.
