TOURISM

SAUDI’S TOURISM REBOUND EFFORTS TAKE CENTRE STAGE 

Saudi Arabia's travel and tourism sector grew at a fast clip over the past few years before the pandemic, and is expected to accelerate as the government unveils a series of projects and initiatives.

The World Travel and Tourism Council (WTTC) expects the Saudi tourism sector to grow an average 11% annually over the next decade, making it the Middle East's fastest growing market.

“Travel and tourism will become a driving force of the Saudi Arabian economy and will surpass the goals set out in its Vision 2030 blueprint," said Julia Simpson, WTTC president and chief executive.

By the next decade, tourism could contribute nearly SAR 635 billion (USD 169 billion), representing 17.1% of the kingdom's total economy, the WTTC predicts.

The kingdom’s tourism sector is building on already impressive growth. Travel and tourism’s total contribution in 2020, latest available data from the WTTC’s report shows, stood at USD 48.5 billion – making it the 14th largest market among G20 peers. Tourism represents 7.1% of Saudi GDP, making it the biggest contributor among G20 nations.

The Middle East was the second fastest growing region in 2019, behind Asia-Pacific, with travel and tourism GDP growing by 3.2%. This growth was largely driven by Saudi Arabia, the region’s largest country in terms of travel and tourism GDP, according to the WTTC.

“With growth reaching 11.7% in 2019, Saudi Arabia was the fastest growing country not only in the Middle East but amongst all G20 economies in 2019. This incredible growth was the result of an ambitious strategy ‘Vision 2030’ to drive the transformation of the travel and tourism sector… enabling the country to welcome international leisure tourists.”

                 

Post-COVID-19, the Saudi tourism industry appears to be gaining new ground.

The 60-day Jeddah Season 2022 concluded in July with activities across 13 zones and event sites throughout the city. More than 6 million domestic and international tourists, representing 129 countries, attended and enjoyed entertainment, cultural, artistic, tourism, maritime sports, and other activities.

“The number of Saudis working during the season exceeded 80% of the total workforce, demonstrating their abilities and skills, and the season generated over 76,000 direct and indirect employment opportunities,” the organisers said. “In addition, the season featured numerous international shows, events, and experiences, some of which were held for the first time in the world, and were able to attract visitors and tourists from 129 countries.”

In addition to Historic Jeddah, the following zones will maintain and continue their activities throughout the year: Prince Majid Park, Jeddah Art Promenade, Jeddah Jungle, JeddahYacht Club, Luna Park, Juvali Park, and the Village .

New hotel and tourism developments are adding to Saudi Arabia’s tourism charm.

In June, the Tourism Development Fund (TDF) signed a memorandum of understanding (MoU) with Melia Hotels International to bring new tourism concepts focused on leisure, food and beverage, and entertainment to three key destinations under the National Tourism Strategy – Riyadh, Jeddah, and the Eastern Province. The two parties will develop high-quality tourism destinations, with a total project value of more than SAR 1 billion (USD 266.5 million) for all the three destinations.

"Saudi Arabia's natural and geographic diversity offers promising opportunities to develop high-quality hospitality projects. In that respect, we are pleased to establish this MoU with the Tourism Development Fund and look forward to playing a role in the achievement of the ambitious objectives of Saudi Vision 2030. We are committed to developing these three projects according to the highest international standards and in line with the kingdom’s distinct identity on the world stage," said Gabriel Escarrer, CEO and vice chairman of Melia Hotels International.

Meanwhile, Neom, the massive USD 500-billion multi-faceted tourism project rising in the northwest shore of Saudi Arabia, is also looking to improve accessibility to the new tourism destination. In May, Neom and Saudia, the kingdom’s flag carrier, launched a strategic partnership to begin offering weekly service to international destinations from NEOM Bay Airport (NUM), representing the inauguration of commercial services at the airport.

Saudia will operate direct flights to select regional and international destinations. From the end of June 2022, the airline will fly weekly to Dubai International Airport, with plans to expand to London soon thereafter.

The launch of tourism destinations, in addition to a slew of business events and conferences had led to a new chapter of growth in the kingdom’s tourism sector.