Saudi Arabia is witnessing a boom in tourism sector, owing to the Kingdom’s efforts to promote investments in tourism industries.
These efforts align with the Kingdom’s goal of transforming the country into a global tourism hub. To this end, the Kingdom is boosting the tourism sector by lunching mega projects and introducing new regulations and legislations to attract more investors.
Promoting Investments
The Saudi Minister of Tourism, Ahmed Al-Khateeb, said that Saudi Arabia is working to introduce new regulations and legislation with the aim of facilitating investment process in the Kingdom.
During a press conference on Wednesday, in Abha, Aseer, Al-Khateeb outlined the moves taken by the Ministry of Tourism to provide adequate long-term funding at competitive costs in order to encourage investments in the Saudi tourism sector, reported Asharq Al-Awsat.
Tourism Development Fund
Al-Khateeb pointed to the Saudi Tourism Development Fund’s (TDF) role in bolstering the sector. “The Tourism Development Fund plays an important role in providing financing, allocating SAR 7.4 billion to enable over 100 tourism projects around the Kingdom with a value exceeding SAR 35 billion,” he said.
He noted that the Fund provided finance to 10 major projects in Aseer Region, including international hotels and multi-use projects, with a value surpassing SAR1 billion. These hotel brands include: InterContinental Residence in Abha, DoubleTree in Khamis Mushait Governorate, and Khayal Walk Boulevard.
The Saudi Tourism Development Fund was established in June 2020 to support the Kingdom’s growing tourism sector. The TDF boasts a capital of $4 billion, and aims to facilitate the investment process to local and international investors.
Record Numbers
Al-Khateeb announced that Saudi Arabia has made great achievements in promoting tourism in the Kingdom. In the first half of 2024, Saudi Arabia received 60 million tourists, with a total spending of SAR143 billion ($38.1 billion). This accounts for a 10% growth compared to the same period last year.
The Saudi Minister added that by the end of the first half of 2024, the tourism sector contribution to the gross domestic product (GDP) had reached 5%, and is progressing steadily towards achieving 10%, equivalent to SAR600-700 billion.
Moreover, Saudi Arabia welcomed about 109 million tourists in 2023, including 27 million international tourists and 81 million domestic tourists. This places Saudi Arabia in the 11th position globally in terms of tourist numbers.
Expanding Partnerships
During the press conference, Al-Khateeb announced the launch of a Tourism College at King Khalid University, in partnership with the Ministry of Tourism and Hong Kong Polytechnic University.
He also pointed to the signing of a Memorandum of Understanding (MoU) between the Ministry of Tourism and the Colleges of Excellence Company. This MoU aims to develop human capabilities and expand international specialized technical colleges and strategic partnership institutes in the field of tourism and hospitality.
Harnessing Human Assets
The Saudi tourism sector has provided 3.5% of the new job opportunities in the Kingdom, according to Al-Khateeb. He also noted that the Ministry of Tourism invests SAR400 billion annually to train 100,000 Saudis, males and females, in various tourism fields. It also increased salaries to SAR6000, and appointed 1,500 individuals in leadership positions.
Furthermore, the Minister of Tourism said that the Ministry will allocate 10,000 training opportunities inside and outside Saudi Arabia for those working in the tourism sector in Aseer Region.
Investments Initiatives
In recent years, the Kingdom has undertaken a number of initiatives, enacted several regulations, and launched mega projects. As a result, the Saudi tourism sector has seen a major transformation.
Under Vision 2030, Saudi Arabia aims to attract 150 million visits; increase employment by creating 1.6 million jobs; grow and diversify the economy by increasing the private sector’s contribution, attracting direct foreign investments and supporting Saudi Arabia’s GDP by 10%.
The Kingdom’s initial target was to attract 100 million visitors by 2030. But the Kingdom has achieved a great accomplishment by reaching that target 7 years ahead of schedule.
One of the initiatives undertaken by the Kingdom is the Tourism Investment Enablers Program, revealed in March 2024. The Program aims to enable local and global investors’ access to the Saudi hospitality sector to meet the growing demand and strengthen the sector’s competitiveness.
Part of this Program is the Hospitality Sector Investment Enablers Initiative, which aims to attract investments in the hospitality sector, diversify tourism offerings, enhancing the capacity of hospitality facilities in targeted tourist destinations across the Kingdom.
