The Scoop
Saudi Arabia is set to welcome up to 130 million tourists set to spend an estimated 300 billion riyals ($80 billion) this year, as the industry rapidly expands after barely existing just six years ago, the country’s tourism minister said in an interview.
The new figures put Saudi well on track to meet its 2030 goals of 150 million tourist trips annually, which includes domestic travelers, Ahmed Al Khateeb, the minister responsible for the industry, told Semafor. The kingdom is “not slowing down” investments into tourism infrastructure despite the government “reprioritizing” some of its spending commitments amid a period of low oil prices, he added.
Tourism in Saudi Arabia is “growing faster than any other G20 country, and I think that will continue for the next few years until we get our fair share.”
The country had 116 million tourist visits last year, including domestic and international travel, with spending totaling 284 billion riyals. Of the former, international arrivals accounted for 30 million, and have persistently grown at a rate in the double digits, Al Khateeb said.
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Saudi Arabia, which was virtually shut off from foreign leisure travelers until the introduction of tourist visas in 2019, has made tourism a key part of its efforts to diversify the economy. It outlined investments of $800 billion, without specifying a timeline. The plan includes building hotels and upgrading infrastructure such as airports around the country to cater for the visitors it wants to attract.
Next month Saudi Arabia will host the United Nations Tourism General Assembly and Tourise, a conference intended to help attract private investment into the industry. Those events will see billions of dollars worth of new investments announced, Al Khateeb said.
“We are very optimistic about foreign direct investments and see strong interest,” he said.
The kingdom is betting that rising foreign investment into the industry, coupled with inflows of foreign currency from international visitors, will help support the economy at a time of low oil prices. In the last few years, its tourism industry has become a net contributor to the economy. That’s a significant swing from historically having a large net outflow of money from the economy due to Saudis abroad spending more than international visitors to the country.
Notable
- Saudi Arabia’s pivot to promoting tourism is unfolding across the country, the Financial Times reported.
- This photo essay from The New York Times shows Saudis vacationing at newly accessible beach resorts and heritage sites.