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EMBA THESIS
Paid on-street parking impact on retail industry: Case Study on Khobar City, Saudi Arabia
Prepared by
Emad Alzahrani
Contents
Introduction……………………………………………………………………………………………………………………………………………………… 3
Literature Review ……………………………………………………………………………………………………………………………………………… 3
Research Problem/Gap ………………………………………………………………………………………………………………………………………. 7
Research Proposition …………………………………………………………………………………………………………………………………………. 8
Methodology of the Research …………………………………………………………………………………………………………………………….. 9
Data Analysis …………………………………………………………………………………………………………………………………………………. 10
Research Implications and limitations ……………………………………………………………………………………………………………….. 10
Result ……………………………………………………………………………………………………………………………………………………………. 10
Finding and Conclusion …………………………………………………………………………………………………………………………………… 11
Introduction
Paid on-street parking is an important yet often overlooked component of urban transportation
policy. Cities primarily use parking meters to generate revenue and to help ration scarce space by
generating turnover. Although meter revenues are usually modest, parking policy broadly affects
land use, the environment, and many individuals. Therefore, policy will affect many economic
activities that use parking as an input. Understanding meters’ direct and indirect effects on
businesses, drivers, and residents is critical to crafting sensible parking policies.
Given the ubiquity of parking, there is still much to be learned about the broader economic impacts
of parking policy, and empirical research is indeed scant. Reviews of the existing empirical
literature by Marsden (2006) echo this shortcoming — most parking policies are grounded on an
inadequate evidence base. For example, many municipalities require retailers to meet minimum
parking requirements, often without much reasonable justification.
In this research, we will focus on a unique case in the city of Al-Khobar in the Kingdom of Saudi
Arabia, where many stores in the northern Al-Khobar area (the central market in Al-Khobar) were
closed due to customers’ reluctance to visit the market. This is due to the city’s on-street parking
policy, which negatively impacted customer visits in this market.
Literature Review
Parking policies, particularly those related to on-street Paid on-street parking, play a crucial yet
often underestimated role in urban transportation policy. This component serves the dual purpose
of revenue generation and effective space management by encouraging parking turnover. A critical
review of existing empirical literature, as highlighted by Marsden (2006), reveals a significant gap
in understanding the broader economic impacts of parking policies. This dearth of evidence often
leads municipalities to impose minimum parking requirements on retailers without robust
justification, influencing land use, environmental factors, and individual behaviors (Marsden,
2006). The practice of municipalities imposing minimum parking requirements on retailers further
exacerbates the situation. These requirements are often implemented without thoroughly
understanding their direct and indirect consequences. Exploring how such policies affect the retail
industry becomes crucial to crafting sensible and context-specific parking policies.
The impact of on-street parking policies on retail industries is a nuanced yet pivotal aspect that
requires further exploration. The closure of numerous stores in the northern Al-Khobar area is a
compelling case study, revealing the adverse effects on customer visits and business sustainability
(Das et al., 2018). The consequences of on-street parking policies are not limited to economic
downturns; they also extend to the social fabric of urban areas. Theis necessitates a comprehensive
investigation into how on-street parking policies contribute to the challenges businesses face in
specific contexts.
A critical review of on-street parking effects in urban contexts reveals the intricate relationship
between parking policies and retail parking lots. Bindajam Mallick’s (2020) insights into the
effects of parking on urban development are particularly relevant. Understanding the dynamics of
on-street parking and its effects on the retail industry is imperative for urban planners,
policymakers, and business owners. Furthermore, insights from Long (2013) highlight the need
for sustainable solutions that balance the economic needs of retailers with broader urban planning
goals.
.
The empirical research on the economic impact of on-street parking policies, mainly Paid on-street
parking, could be more extensive (Marsden, 2006). Many municipalities rely on minimum parking
requirements imposed on retailers without sufficient evidence, leading to an inadequate base for
crafting sensible parking policies. This lack of empirical grounding underscores the necessity for
an in-depth exploration of the broader economic consequences of such policies, especially in the
context of their impact on retail industries (Long, 2013). Without a robust evidence base,
understanding the direct and indirect effects of on-street parking policies on businesses, drivers,
and residents is essential to inform well-founded parking regulations.
The consequences of parking policies on commercial activities has been investigated in various
cities. In the study by Eldien et al. (2020), the authors discuss the consequences of parking
regulations on customer behavior and retail activities in urban centers. Findings suggest that an
imbalance in parking availability and accessibility negatively affects foot traffic, resulting in a
decline in retail performance. This resonates with the observed closure of stores in the central
market of Al-Khobar and the reluctance of customers to visit the area. Furthermore, Eldien et al.
(2020). provide insights into the broader implications of parking policies on urban development.
It discusses the need for a balanced approach that considers the requirements of various
transportation modes and prioritizes creating inviting and pedestrian-friendly urban environments.
The case study of Al-Khobar aligns with these findings, emphasizing the necessity of revisiting
parking regulations to enhance the overall appeal and economic sustainability of commercial
districts.
The case study in Al-Khobar, Saudi Arabia, presents a unique scenario where the closure of stores
in the central market area has been attributed to customers’ reluctance to visit due to on-street
parking policies (Das et al., 2018). This instance underscores the real-world implications of
parking policies on local businesses and the need to explore these effects comprehensively.
Moreover, this case study provides a valuable opportunity to analyze the intricate relationship
between on-street parking policies and their economic repercussions, shedding light on the
challenges businesses face in the context of such regulations.
Existing studies point to the problematic nature of municipalities imposing minimum parking
requirements on retailers who need a nuanced understanding of their consequences (Long, 2013).
The consequences are not only economic; they also extend to the broader social fabric of urban
areas. Hence, the literature review will delve into the patterns, consequences, and potential
alternatives to prevalent parking policies, specifically focusing on their impact on the retail sector
(Long, 2013). This critical analysis will contribute to crafting context-specific parking policies
that align with broader urban planning goals while addressing the economic needs of retailers.
The insights from Marsden (2005) on the effects of parking on urban development provide a
valuable foundation for understanding the dynamics of on-street parking policies. The complexity
of the relationship between parking policies and retail parking lots necessitates a nuanced
exploration. Additionally, Long’s (2013) emphasis on sustainable solutions highlights the
importance of balancing the economic needs of retailers with broader urban planning objectives.
By synthesizing these insights, the literature review aims to comprehensively understand how onstreet parking policies impact the retail industry, laying the groundwork for informed and effective
urban planning decisions.
Furthermore, insights from urban planning and retail studies by Mouratidis (2018) shed light on
the broader implications of urban design and transportation policies on the vitality of commercial
spaces. The study underlines the necessity of developing pedestrian-friendly surroundings, which
might be jeopardized by on-street parking laws that prioritize automotive traffic above pedestrian
pleasure. According to the report, a balance must be achieved to guarantee that the requirements
of both automobiles and pedestrians are addressed.
In the case of Al-Khobar’s central market, the negative impact on customer visits may result
from a misalignment between the parking policies and the evolving needs and preferences of the
local population. Therefore, understanding the interplay between parking policies, urban design,
and economic activities is crucial for developing effective strategies to revitalize commercial
areas. Future research in this context could explore potential adjustments to parking policies that
better accommodate the diverse transportation needs of the community while supporting the
economic vibrancy of the central market in Al-Khobar.
.
Research Problem/Gap
The research problem identified in this study revolves around the impact of on-street parking
policies, mainly Paid on-street parking, on the retail industry in urban areas. The gap in the existing
literature becomes evident as there is a dearth of empirical research comprehensively exploring
the economic consequences of such parking policies. Marsden (2006) and Marsden (2005)
highlight the need for more evidence-based supporting parking policies, emphasizing the limited
understanding of their direct and indirect effects on businesses, drivers, and residents. The absence
of robust research in this area underscores the necessity for a focused investigation into the broader
economic impacts of on-street parking policies, especially concerning their influence on retail
establishments.
A specific instance exemplifying this research problem is observed in Al-Khobar, Saudi Arabia,
where the closure of stores in the central market area is attributed to customers’ reluctance to visit
due to on-street parking policies (Alshehri & Almana, 2021). This case presents a unique and
understudied scenario that highlights the urgency of addressing the gap in knowledge regarding
the economic repercussions of on-street parking policies. The lack of empirical grounding in
understanding the challenges faced by retailers in the context of prevailing parking regulations
necessitates a systematic inquiry into the relationship between these policies and the retail
industry, aiming to fill the identified gap in the existing literature (Marsden, 2005).
Research Proposition
The research proposition for this study revolves around examining the impact of on-street parking
policies on the retail industry, specifically focusing on the city of Al-Khobar in Saudi Arabia.
Building on the existing literature gap identified by Marsden (2006) and Marsden (2005), the
primary proposition is to investigate the direct and indirect effects of Paid on-street parking on
businesses, customers, and residents. The case study of Al-Khobar provides a unique context
where stores in the central market area experienced closures due to customers’ reluctance linked
to on-street parking policies ((Alshehri & Almana, 2021). This proposition sets the stage for an
in-depth exploration of the economic consequences of such policies, aiming to contribute
empirical evidence to the limited body of knowledge in this domain.
The study will employ a methodological exploratory quantitative case study, aligning with the
research proposition to obtain comprehensive information through a business survey. The central
question will revolve around understanding the perceptions and experiences of retailers,
customers, and residents regarding on-street parking policies and their impact on retail activities.
This approach, rooted in empirical investigation, is crucial for addressing the existing gap
highlighted by Marsden (2005) and Marsden (2006), emphasizing the need for evidence-based
parking policies.
Moreover, the research proposition extends to evaluate the on-street parking policies in Al-Khobar
in the context of broader urban transportation policy. The aim is to understand how these policies,
intended to generate revenue and manage scarce space, affect land use, the environment, and
economic activities, particularly those dependent on parking as a critical input. By examining the
specific case of Al-Khobar, the study seeks to draw insights applicable to urban planning and
policymaking in similar contexts. Thus, The proposition entails a micro-level analysis of retail
impacts and a macro-level exploration of the broader implications of on-street parking policies on
urban dynamics.
Furthermore, the research will delve into the effectiveness of existing parking policies,
questioning the rationale behind minimum parking requirements imposed on retailers. This
proposition aligns with the critique of Marsden (2006) and Shoup (2005), who highlighted the
inadequacy of evidence supporting many parking policies. By evaluating the efficacy of such
requirements, the study aims to provide recommendations for policymakers and urban planners
grounded in empirical findings. The overarching goal is to propose sensible and informed
parking policies that balance revenue generation, space management, and the needs of
businesses, customers, and residents.
Methodology of the Research
The methodology employed in this research is a methodological exploratory quantitative case
study designed to investigate the impact of on-street parking policies on the retail industry in AlKhobar, Saudi Arabia. This approach aligns with the research proposition, emphasizing the need
for a systematic and empirical examination of the phenomenon. The goal is to obtain
comprehensive insights into the perceptions and experiences of businesses, customers, and
residents regarding on-street parking policies.
The research design involves a quantitative case study, which is appropriate for exploring the
complexities of the relationship between parking policies and the retail industry. This design
allows for the collection of numerical data that can be statistically analyzed, providing a robust
foundation for drawing empirical conclusions. By focusing on Al-Khobar, a city where the central
market area experienced store closures linked to on-street parking policies, the case study approach
enables an in-depth investigation of a specific context with real-world implications.
A survey will be a vital component of the research methodology, aiming to gather relevant
information from businesses, customers, and residents. The survey will be carefully designed to
address the central research question, which focuses on understanding the impact of on-street
parking policies on retail activities. Ideally, the survey questions will explore the perspectives of
businesses regarding customer behavior, revenue changes, and operational challenges attributed
to on-street parking policies. Additionally, the survey will seek input from customers and residents
to capture their experiences and sentiments related to on-street parking and its influence on their
interactions with retail establishments.
The survey instrument will be structured to gather quantitative data, allowing statistical analyses
to discern patterns, trends, and correlations. The research aims to provide a nuanced understanding
of the multifaceted relationship between on-street parking policies and the retail industry by
employing quantitative methods. This approach also facilitates generalizability, enabling insights
from the Al-Khobar case study to contribute to broader discussions on urban planning and parking
policies.
A comprehensive sampling strategy will be employed to ensure the survey’s effectiveness.
Businesses in the central market area, customers frequenting these establishments, and residents
residing nearby will constitute the target population. The sampling process will consider business
size, customer demographics, and residential characteristics to ensure representation across
diverse perspectives.
Data Analysis
To be developed .
Research Implications and limitations
To be developed .
Result
To be developed .
Finding and Conclusion
To be developed .
References
Das, A., Chakma, R., Nahar, A., & Uddin, N. (2018). Existing Situation of On-Street Parking and Impacts on
Effective Carriageway Width and V/C Ratio: A Case Study of Rajshahi City Corporation Area. Science
Technology & Society, 6, 33-42. https://doi.org/10.11648/j.ijsts.20180602.12
Alshehri, A., & Almana, L.. (2021) Khobar City Plan and the New Public Space in Saudi Arabia,
The Journal of Public Space, 6(1), 215-234, DOI 10.32891/jps.v6i1.1323
Bindajam, A. A., & Mallick, J. (2020). Impact of the Spatial Configuration of Streets Networks
on Urban Growth: A Case Study of Abha City, Saudi Arabia. Sustainability, 12(5), 1856.
https://doi.org/10.3390/su12051856
Eldien, H. H., Gazzeh, K., & Hammad, E. (2020). Sustainable supply chain management in smart
city design: A Al Khobar City center case study. Int. J Sup. Chain. Mgt Vol, 9(4), 893.
Long, A. R. (2013, December 19). Urban Parking as Economic Solution. Parking & Mobility,
TPP-2013-12. Retrieved from https://www.parking-mobility.org/2016/01/19/tpp-2013-12-urbanparking-as-economic-solution/
Marsden, G.R. (2005). The evidence base for parking policies – a review. Transport Policy,
13 (6). pp. 447-457. ISSN 0967-070X https://doi.org/10.1016/j.tranpol.2006.05.009
Marsden, G. (2006) The Evidence Base for Parking Policies—A Review. Transport Policy, 13, 447-457.
http://dx.doi.org/10.1016/j.tranpol.2006.05.009
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