| One in every SAR 11 is generated by the country’s tourism industry,
according to the World Travel & Tourism Council. Last year, the tourism sector contributed SAR 244.6 billion, or USD 65.2
billion, to the Saudi economy, representing 9% of the country’s GDP. The
industry currently supports 1.1 million jobs, or 8.5% of total employment
– roughly one in every 12 jobs, WTTC estimates show “Travel and tourism contributes strongly to the economy of Saudi Arabia
and has long been recognised as a driver of economic growth, job
creation and the development of rural areas,” said Gloria Guevara,
president and CEO of WTTC, noting that the sector is a key pillar of the
Vision 2030 strategy “The kingdom has seen tourism increase by more than 60% under
Prince Sultan’s leadership and we acknowledge his efforts to highlight
the kingdom’s cultural heritage as an important attraction for tourism.” A report by Savills, the UK-based real estate consultancy, notes that
Saudi Arabia’s overnight international arrivals is expected to cross 22
million by 2022, compared to 16.1 million in 2017 “Perhaps the cornerstone of KSA’s inbound tourism are the annual
pilgrimages of Hajj and Umrah, which drew 2.4 million and 6.5 million
visitors respectively, over the two most recent events – forecast to
increase to 30 million visitors collectively by 2030,” Savills said. A 30-day visa extension available for Umrah visitors has also contributed
to the increase in average length of stay from overseas visitors. This,
alongside recent restrictions on the use of non-hotel accommodation in
Makkah during Hajj (such as home-stays), has helped to boost hotel
occupancy levels in the area during this period, the consultancy noted.
HERITAGE RICHES
Investors and tourists are being drawn to Saudi Arabia’s untapped
heritage riches. In August, The Royal Commission for AlUla, or RCU, said
it had established a partnership with Aman, a leading hotel and resort
brand, to develop their first three properties in AlUla. The Singapore-based company will develop three distinct luxury resorts
of architectural excellence including a tented camp, a resort near AlUla’s
spectacular heritage areas and a third development as a desert
ranch-style resort. Work on the projects is expected to commence
shortly with the first guest expected in 2023. “The decision by Aman to open its first resorts in the Middle East in
AlUla shows the promise and progress of the vision for AlUla to become
a worldwide destination for those seeking unique experiences,” said
Saudi Arabia’s minister of culture, and the governor of the RoyalCommission for AlUla prince Badr bin Abdullah bin Mohammad bin
Farhan Al Saud. “I believe this partnership will be the next step in the
development of the yet-to-be discovered masterpiece that is AlUla.” “Many of our existing Aman destinations are located in areas of
outstanding natural beauty and rich history,” said the chairman and CEO
of Aman, Vladislav Doronin. “With the addition of spectacular AlUla, this
takes us to 10 properties situated near or in UNESCO heritage sites,
making it a fitting location for our first destination in the Middle East.” The first Aman developments will feature a spa resort featuring 30
luxury tents, another resort will showcase AlUla’s natural beauty and the
third destination will encompass a desert ranch-style resort with
panoramic views. AlUla, a governorate in the Madinah region has been identified as a
cultural and heritage tourism destination. In 2017, the government
established RCU to protect and safeguard AlUla, a region of outstanding
natural and cultural significance in North-West Saudi Arabia. “RCU is embarking on a long-term plan to develop and deliver a
sensitive, sustainable transformation of the region, reaffirming it as one
of the country's most important archaeological and cultural destinations
and preparing it to welcome visitors from around the world. RCU’s
development work in AlUla encompasses a broad range of initiatives
across archaeology, tourism, culture, education and the arts, reflecting
the ambitious commitment to cultivate tourism and leisure in Saudi
Arabia, outlined in Vision 2030,” the company said
COASTAL VILLAGE PROJECT
The partnership with Aman is the second major international resort
development for the AlUla region and follows the planned Jean
Nouvel-designed resort within the Sharaan Nature Reserve. Another major development is coming up on the Red Sea. The Red SeaDevelopment Company (TRSDC), wholly owned by the Public
Investment Fund, said it has started work on the Coastal Village, a
residential and commercial area that will house the workers, staff and
management of The Red Sea Project. The project spread over 28,000 square kilometres on Saudi Arabia’s
west coast, includes an archipelago of more than 90 islands and
lagoons, apart from mountain canyons, dormant volcanoes, desert
vistas and ancient cultural and heritage sites. The first phase of the
development is planned to open in 2022 and will include hotels,
residential properties, a marina, leisure, commercial and entertainment
amenities and supporting infrastructure. Construction of corporate offices is already under way on the Coastal
Village site, with a scheduled completion date at the second quarter in
2020. When complete, the project will feature 14 luxury hotels offering
3,000 rooms across five islands and two inland resorts. It will also
include a marina, entertainment facilities, an airport, and the necessary
supporting logistics and utilities infrastructure | 
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