Saudi Arabia plans to attract high-spending tourists from India and China, according to Sultan Al Musallam, the Deputy Minister of Tourism for International Affairs. The Kingdom is also looking to expand its e-visa program, which currently includes 63 nations. This program specifically aims to facilitate travel from influential markets such as China and India.
Strategic Tourism Growth Plans
“We’re not just bringing in tourists; we want visitors who contribute meaningfully to the economy,” Al Musallam stated. The Gulf state has revised its annual visitor target from 100 million to 150 million by 2030. Focus on regions like China and India is crucial to achieving this ambitious goal. Last year, the Kingdom welcomed 100 million visitors, showcasing robust tourism potential.
Exploring Growth Opportunities in Asia
Al Musallam emphasized the enormous opportunities in the East, stating, “While Europe remains strong in leisure tourism, the booming middle-class segment in India presents a significant opportunity.” Indian tourists are evolving; they are exploring farther destinations, which benefits Saudi Arabia. Historically, India has a strong traffic flow due to the large expatriate community and religious tourism.
“By collaborating with the Indian government, we aim to attract more affluent tourists seeking unique experiences,” he noted. Al Musallam is also optimistic about reviving the Chinese tourism market, citing an increase in interest from European travelers.
Balancing Domestic and International Tourism
The Ministry seeks to balance its mix of domestic and international tourists, aiming for a 50-50 ratio by 2030. In the previous year, Saudi Arabia welcomed 77 million domestic tourists and 27 million international travelers, totaling 104 million visitors. Domestic visitor spending increased by 21.5%, reaching SR142.5 billion.
The Impact of Tourism on GDP
Last year, Saudi Arabia’s tourism sector surged by over 32%, contributing SR444.3 billion to the GDP. “The share of leisure tourists among inbound visitors is continually rising,” Al Musallam remarked. The sector’s contribution to GDP was 3.5% in 2019, with a goal of reaching 10% by 2030.
“Construction is booming across Saudi Arabia, with new hotels rapidly emerging,” he added. Notably, the Kingdom’s hospitality scene will expand significantly, with several new Four Seasons hotels slated to open soon.
According to the World Travel & Tourism Council, jobs supported by the tourism sector grew by 436,000 last year, bringing the total to over 2.5 million jobs—accounting for nearly one in five jobs in Saudi Arabia.
Addressing Demand and Supply
When asked about potential supply issues, Al Musallam responded, “So far, we don’t see any issues. However, we must sustain this growth and ensure that demand continues as supply enters the market.”
The government is advancing several mega-projects, including Neom, Red Sea, Qiddiya, Roshn, Diriyah, and New Murabba, alongside infrastructure enhancements to accommodate increasing tourist numbers.
Al Musallam highlighted the ongoing developments in several giga-projects. “Some projects are already completed. For instance, the Sindalah Island, part of Neom, will welcome guests this year,” he explained. The Bab Samhan Hotel in Diriyah is now open, and the Bujairi Terrace in Riyadh is already welcoming visitors.
Increasing Foreign Investment
The minister noted a rising interest in foreign investment in Saudi Arabia. “The Hyatt Group held its first-ever board meeting outside the US in Saudi Arabia last month. This illustrates their view of Saudi not just as a market but as a growth partner,” he said.
“Interest from hotel groups in India, China, and Thailand continues to grow. The Minor Group has already explored opportunities in Saudi, resulting in projects, joint ventures, and direct investments in hospitality and tourism.”
This strategic focus on expanding high-spending tourism demonstrates Saudi Arabia’s commitment to enhancing its global travel appeal, promising exciting growth opportunities in the near future.
