| TOURISM ON FRONT LINE OF SAUDI’S ECONOMIC DIVERSIFICATION PLAN |
Saudi Arabia’s decision to upgrade the Saudi Commission for Tourism and National Heritage, or SCTH, to the level of a ministry, highlights the sector’s rising importance in the country.
Ahmed Al-Khatib was appointed the minister of tourism, and charged with the task of achieving the targets set out in Saudi Vision 2030. Some of these targets include tripling Umrah visitors from 8 million to 30 million, and restoring ancient cultural sites to make them accessible, as well as creating cultural events and building world-class museums.
The authorities also want to double the number of Saudi heritage sites registered with UNESCO. The overarching ambition is to increase international and domestic visits to 100 million a year by 2030, and create one million tourism jobs.
Last year, Al-Khatib was appointed president of the SCTH, and served as the chairman of the board of directors of Saudi Arabian Military Industries (SAMI), chairman of the board of directors of the General Entertainment Authority (GEA), and chairman of the board of directors of the Saudi Fund for Development (SFD).
While the global tourism industry has taken a hit from the coronavirus, which has temporarily forced countries to close their borders or restrict entry into their countries, the kingdom is taking a long-term view and aiming to create a dynamic tourism destination, taking advantage of its coastlines, heritage sites and natural environment.
NEW AIRPORT AND LEISURE HUBS
Late last year, The Red Sea Development Company, which is building a major tourism development project, awarded a contract to Fosters + Partners for a new airport.
“Awarding the contract for the design of our airport is an important milestone and the first of the underlying infrastructure projects of the destination” said John Pagano, chief executive officer at The Red Sea Development Company.
“Fosters + Partners and their engineering subconsultant, WSP Global, have demonstrated their ability to deliver projects in line with world-class development and our sustainability standards. We look forward to collaborating with them to develop an innovative design that will enhance the visitor experience, meet our sustainability goals and enable us to deliver an airport for the future.”
The airport, which is expected to be complete by 2022, will handle around a million passengers annually.
“The Red Sea Airport has been envisaged as a gateway to one of the most unique resorts in the world and an integral part of the visitor experience,” said Gerard Evenden, Head of Studio, Foster + Partners. Inspired by the colours and textures of the desert landscape, the design seeks to create a calm and luxurious journey through the terminal and will become a transit hub for visitors coming in by both land and air.
In addition, Saudi Entertainment Ventures Company (Seven), created by Public Investment fund, plans to develop and operate a number of entertainment complexes in key locations in the country.
"We have a clearly structured development plan to build 20 entertainment destinations, 50 cinemas and two large theme parks in prime locations across the kingdom," stated Chairman Abdullah Al Dawood.
Qiddiya, a giga-project under construction near the capital city of Riyadh, will also see the opening of a 32-hectare Six Flags theme park by 2030.
Qiddiya is spread over 334 square kilometres (sq km) , and comprise a 231 sq km natural area as well as a 103 sq km developed area.
GROWING SECTOR
Saudi Arabia’s tourism sector is emerging as a major source of revenues, jobs and investment.
Latest available data from the General Authority for Statistics show just over 72,300 tourism establishments employed around 552,000 employees, including 20,000 female employees, by the end of 2018.
The companies generated an operating income of SAR 12,411 billion, with employee compensation reaching SAR 19.4 billion.
Food and beverage outlets accounted for 73% if all tourist establishments, followed by 13% of visitor accommodation, such as hotels, motels and self-service suites.
“Survey results show that food and beverage had the highest percentage of Saudi employees (6.8%) among tourism characteristic activities, followed by visitor accommodation (5.5%). Certain activities had no more than 3% or 1% Saudi employees, such as water passenger transportation and cultural activities,” GStat said in its annual survey.
Survey results also indicated that the total employee compensations in tourism characteristic activities in 2018 increased by 4.1% compared to 2017. Three activities were responsible for the highest compensations, namely food and beverage (SAR 7,684 million), air passenger transport (SAR 3,865 million) and visitor accommodation (SAR 3,394 million).
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