The family entertainment centre industry in Saudi Arabia will "bounce back and expand" says Mohamed Attia, CEO at Salman Al Hokair Leisure and Attractions, as his businesses prepare to reopen after the lockdown.
Attia, in an interview with regional business publication Retail ME, runs the Billy Beez chain of FECs, together with Kidzania, Strike 10 and Octo brands including Octo City, Octo Karting, Octo Snowpark and Octo Lasertag.
The business is a subsidiary of Salman Al Hokair Holding and is not related to the Al Hokair Group, the well-known Saudi-based FEC operator.
Attia, who has a considerable track record in senior positions within the FECs industry, notably with Al Othaim, told the publication: “We are ambitious about our growth plans for 2020 and beyond. We will continue to open our entertainment centres within Arabian Centres (a high-profile upmarket shopping malls group).
He said that SALA Entertainment will open 22 new centres across Saudi this year, despite the time lost in the pandemic. They would encompass all of the company’s chain of brands, he said. “We have signed up about 861,000 sq. ft. of space within Arabian Centres properties so far.”
SALA, in common with other Saudi FEC operators, was forced to close down its venues for several weeks to counter the virus, but it continued to pay its staff and the process of designing locations was not stopped. “We are preparing to reopen the existing outlets when the restrictions are lifted. That will mean extensive sanitation and operating a reduced capacity, so the challenges will remain; however the optimism will also remain.”
Attia praised the Arabian Centres management for their support and understanding attitude during the lockdown and join with SALA in following a gradual and responsible approach towards opening procedures. “We are hoping that FECs will be permitted to reopen on June 21, possibly with a maximum capacity of 50 per cent.”
There would be a question of the operating cost against reduced capacity at first, said Attia, but this would have to be evaluated on a venue-by-venue basis. “A high capacity concept such as Octo Snowpark would not justify the operating cost on reduced capacity, but the gate pass concept at Billy Beez means that the costs can be controlled more readily,” said Attia.
He feels strongly that the industry will change after the pandemic. Much of the change, he said, would depend upon individual venues’ ability to adapt. “Overall, I think, the demand for leisure and entertainment will increase as consumers will be more willing to spend on entertainment and F&B over other segments within retail. We are working hard along with our manufacturers, suppliers and landlords, to ensure that we have the highest quality products within a safe environment.”
