SPECIAL REPORT
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AN ALTERNATIVE
LODGING EXPERIENCE
The evolution of eco, wellness, agri and adventure (EWAA) tourism can be attributed to increased demand for sustainable lodging options, lifestyle changes and greater awareness of how tourism is impacting the environment. James Wrenn, associate director of Colliers, discusses the growth of alternative lodging options in the MENA. It may not come as a surprise that the Covid-19 pandemic is fueling further developments in EWAA tourism, as hospitality providers continue to search for operational and structural sustainability, along with increased preferences among consumers for more outdoor-focused experiences. Simultaneously, the MENA region is in the process of establishing itself as a key destination for EWAA tourists, with numerous developments underway in this space. While initial EWAA projects were centered on individual luxury desert resorts, particularly in the UAE, we are now seeing the UAE, KSA and Oman making leading gains in this lucrative market. EWAA lodging in the region, both existing projects and those under development, ranges from economy tents and repurposed containers to luxury tented villas and branded resorts. Key investment considerations when developing an EWAAfocused lodging experience include:
1. Site challenges A typical EWAA development is located in a relatively remote area that’s surrounded by nature, as this concept is synonymous with the great outdoors. A remote location
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is likely to bring in logistical challenges, which can be negated by choosing the most suitable place within an area and designing the scheme with operational efficiencies in mind.
2. Structural costs Excluding general amenities and infrastructure, the cost of EWAA structures is relatively low, which is the most attractive feature of these types of developments. However, the main challenge arises in the installation of these structures to develop an integrated product with amenities.
Successful development of such destinations requires understanding and support from local stakeholders.
3. Involvement of local stakeholders The growth of experiential travel has led tourism and hospitality developers/investors to focus on destinations with untouched natural resources. Successful development of such destinations requires understanding and support from local stakeholders. A
relationship with the local community not only increases the value of the product in terms of authenticity but also contributes to conservation of the surrounding area.
4. Government support Governments across the Gulf have a vested interest in supporting projects that are focused on EWAA tourism due to the growth in popularity of this concept and the way in which it promotes remote destinations. As part of its tourism development strategy, Saudi Arabia launched Soudah Development Company, an entity that will be solely responsible for the development of the mountain destination in the Asir region. For those interested in learning more about this topic, Colliers recently published a research paper on EWAA tourism and the growth of alternative lodging options. The paper focuses on different types of lodging options available, with segregation based on property positioning. The paper details key features which are typical of each lodging level, from economy to luxury. Interestingly, from an investment point of view, development cost estimates for each lodging level are provided. The report can be downloaded here: colliers.com/en-ae/ research/dubai/ewaa-ii-may-2021
