Arab News, Sat, Mar 16, 2024 | Ramadan 6, 1445
Saudi Arabia secures $13bn for tourism expansion, eyes $85bn revenue boost: minister
Saudi Arabia:
Saudi Arabia has secured $13 billion in private sector investments for its
tourism industry, aiming to distribute the costs involved in becoming a top
destination, a minister said.
According to Princess Haifa Al-Saud, the Kingdom’s
vice minister for tourism, the investments are expected to increase the number
of hotel rooms by 150,000 to 200,000 within the next two years.
Saudi Arabia aims to raise tourism revenue to $85
billion this year, up from approximately $66 billion in 2023, Princess Haifa
said in an interview with Bloomberg.
“The current GDP (gross domestic product)
contribution is 4.5 percent and we aim to get that to 10 percent by 2030. We
started from 3.2 percent when we opened up for tourism,” she said.
Saudi Arabia aims to attract 150 million tourists
annually by 2030 as part of Crown Prince Mohammed bin Salman’s economic
diversification strategy, which involves shifting revenue streams from oil to
sports and technology.
The Kingdom is investing in projects such as
Qiddiya and industries including football to attract foreign visitors. It is
also the only bidder for the 2034 World Cup.
In 2023, Saudi Arabia welcomed 100 million
tourists, the majority of whom were locals. Around 27 million international
visitors arrived, many traveling for religious or business reasons.
Due to ongoing building projects, leisure
excursions are estimated to account for a small percentage of total travel.
The government plans to recruit $80 billion in
private investment in tourism by 2030 and spend $800 billion on the industry in
the next decade.
In October 2023, Saudi Arabia’s hospitality sector
revised its 2030 target to 150 million visitors, up from the initial 100
million, according to the minister of tourism.
“I think we will close this year with about 100
million (visitors) and almost 6 percent of contribution to gross domestic
product, that’s why ... (Crown Prince Mohammed bin Salman) instructed us to
revise up our targets to 150 (million visitors),” Al-Khateeb said at the time.
The minister elaborated that out of this new
target, an estimated 75 million travelers are expected to be international, with
the remaining 75 million domestic.