| The Saudi tourism industry is poised for a massive expansion.
A new report by the Middle East and North Africa Leisure & Attractions Council (MENALAC) estimates investments in the kingdom’s tourism projects will reach USD 810 billion by 2030, as part of the Saudi government’s overarching ambition to build a robust services industry and leverage its heritage and cultural sites.
The government aims to raise tourism’s contribution to GDP to 10%, providing one million new jobs and welcoming 100 million visitors by 2030.
MENALAC estimates that the Public Investment Fund, the kingdom’s sovereign wealth fund, will expand its investment in leisure projects from 2.9% in 2020 to 6% by 2030, with tourism revenues expected to exceed USD 37 billion by the end of 2020.
“Mega tourism projects being developed by Public Investment Fund will be spread over an area of more than 64,634 sqkm, with a value exceeding USD 810 billion,” Saudi Commission for Tourism and National Heritage (SCTH), the country’s tourism regulator, said.
Projects such as Qiddiya Entertainment City, The Red Sea Project, AMAALA, Al Ula, King Salman Park and Riyadh Sport Boulevard, are expected to be completed in 2030.
In July, developer Qiddiya Investment Company, backed by PIF, awarded a SAR 700 million infrastructure contract to Saudi Arabia-based Shibh Al Jazira Contracting Company (SAJCO) for work related to roads and bridges.
“Although 2020 has presented some unprecedented circumstances, Qiddiya has proudly sustained a 'business as usual' protocol, signing our second major construction contract with SAJCO and achieving yet another major construction milestone for this year,” Michael Reininger, chief executive of Qiddiya, said.
Meanwhile, the Red Sea Development Co., which is building a massive tourism project on the kingdom’s west coast, awarded its largest value contract for airside infrastructure works for the destination’s international airport, set to open in 2022. The contract was awarded following a competitive tendering process to a joint venture between leading Saudi contractors Nesma & Partners Contracting Co. Ltd and Almabani General Contractors. FACILITATING TOURISM
Earlier this year, the Ministry of Tourism embarked on a rebranding exercise, with the “Welcome, World” motto that coincided with the kingdom launching new tourist visas for visitors from 49 countries, either through its e-platform or upon arrival. The facility is offered to holders of Schengen visa, U.S. visa and the U.K. visa. The Ministry said so far more than 400,000 tourist visas have been issued.
In February, the ministry had launched a new package of e-services, which included issuing licenses for several tourist activities within two minutes, compared to 150 days previously and without the need for any paper transaction.
Investors can now visit the website TLG.scth.gov.sa to issue licenses for several tourist activities such as booking accommodation units or expeditions.
In September, the kingdom received a major vote of confidence when the United Nation’s World Tourism Organization (UNWTO) signed a deal to establish a regional office for the Middle East in the capital city of Riyadh.
“This step comes within the importance of developing the sector of tourism and implementing the organisation's activities in the Middle East under the supervision of the UNWTO secretary general. This office is an integral part of the World Tourism Organization,” according to the ministry. “The organisation will manage the office from its headquarters in Madrid, Spain.”
Saudi Arabia is also making an impact internationally on furthering the cause of the global tourism industry as president of the G20 group this year.
In October, the G20 issued a strong communique, praising the kingdom’s leadership during the tourism industry’s worst crisis.
“We welcome the progress achieved during Saudi Arabia’s G20 Presidency on key topics, including global commitments made in response to the COVID-19 pandemic, the progression of inclusive community development through tourism, and the advancement of safe and seamless travel and improved traveller experience,” the joint statement noted.
Some of the key issues such as promoting the use of digital traveller identity and biometrics, inclusive and sustainable tourism in the G20 communique dovetail with Saudi Arabia’s own tourism plans.
Supporting capacity building, investing for seamless travel and recognising the key role played by the private sector, were also identified as important to boost tourism.
“The number of international tourist arrivals in 2019 was 1.5 billion with expected growth, pre COVID-19, to reach 1.8 billion by 2030 (UNWTO, 2019),” the communique read. “It is now paramount more than ever to guide the sector to ensure sustainable and inclusive development through strong and effective international dialogue and governance.” |
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