A Supply Side Investigation of Rural Lodges in Al-Ahsa Oasis: An Exploratory Analysis

Abstract

Al-Ahsa Oasis, a UNESCO World Heritage site in Saudi Arabia, has significant potential for rural tourism development. This study examines the supply side of rural lodges within the oasis, focusing on their characteristics, pricing, and key factors influencing the rural tourism market. Descriptive analysis revealed a diverse range of rental prices (SAR 350–3000 per night) and lodge sizes (90–10,000 m2). Three types of rural lodges emerged: chalets, resorts, and istrahas, catering to various guest preferences and budgets. Resorts, with their larger sizes and comprehensive amenities, commanded the highest average prices. A hedonic price model was employed to analyze the factors affecting rental prices. We find that the number of bedrooms, the availability of pools, and car garages positively impacted prices. In contrast, the presence of pool fences and “family-only” designations negatively affected prices, suggesting limited appeal to some market segments. These findings provide valuable insights for tourism stakeholders and policymakers seeking to optimize the rural tourism sector in Al-Ahsa Oasis. This study emphasizes the importance of understanding supply-side dynamics, catering to diverse visitor needs, and investing in amenities that enhance guest experiences. By promoting quality standards and encouraging infrastructure investment, policymakers can contribute to the sustainable development of rural tourism in Al-Ahsa Oasis.