How coral reefs, cool coastal cities and six world heritage sites can help transform the Saudi economy

Tourism can create job opportunities, build a bridge with the world and boost the Kingdom’s ambitious diversification plans. 125 million visitors are expected by 2030.

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Tourist on Edge of the World, a natural landmark and popular tourist destination near Riyadh -Saudi Arabia.

How coral reefs, cool coastal cities and six world heritage sites can help transform the Saudi economy

Shujaa Albogmi

last update on 30 Jul 2023

Tourism will be a key driver for Saudi Arabia to turn its Vision 2030 ambitions into a reality.

The sector is looking to take its share of the national economy up to 10%, as the country welcomes visitors from around the world, up from 4% of gross domestic product in 2022.

The Kingdom wants to unlock the enormous competitive advantages it has – not least a geographical location linking three continents – as it also transforms into a dynamic destination for investment and development.

Many millions and great growth: visitor numbers

Over 94 million visits were made in Saudi Arabia in 2022, with 16.5 million from abroad and 77.5 million made internally. The aim is for 125 million overnight stays in the country by 2030.

With Europe and much of the northern hemisphere facing extreme heatwaves this summer, Saudi Arabia's beautiful coastal cities like Abha, Al-Baha and Taif, as well as other coastal destinations, offer an escape.

AFP — A handout picture acquired from the Saudi Ministry of Tourism on October 3, 2020, shows the Silver Spirit cruise ship sailing off Saudi Arabiaís western coast.

The tourism sector expects over 96 million visits in 2023 and the current summer season is expected to play an important role in boosting the growth rates.

Over 94 million visits were made in Saudi Arabia in 2022, with 16.5 million from abroad and 77.5 million made internally. The aim is for 125 million overnight stays in the country by 2030.

UNESCO-site haven

The Kingdom's appeal works on a number of levels. It combines authentic Arab culture, diverse landscapes, rich heritage, and renewed entertainment offerings.

The Kingdom has six Unesco-designated World Heritage Sites and more than 10 archaeological sites, including AlUla, in addition to the huge tourism and entertainment seasons that the country is now offering.

Getty images — Madain Saleh, a UNESCO World Heritage site, in Medina Region.

Fast-paced growth

Growth in tourism has been the fastest among G20 nations, reaching 120% in 2022 compared with levels seen before the Covid-19 pandemic.

Tourism is a major job-creator and an important means of diversifying the economy away from oil, the over-arching ambition of Vision 2030.

In 2022, the increase in direct jobs in the tourism sector exceeded the target of 139% for the year, in line with moves to boost private sector employment, with roles on offer across the cultural industries.

The Ministry of Tourism is running qualification programmes to train 100,000 young men and women so the sector has the human resources it will need to grow, and a new generation of workers can enhance their quality of life and well-being.

For international visitors seeking to experience all this, entry procedures and visa arrangements are straightforward. Since late 2019, tourist visas remain valid for a full year and holders can stay up to 90 consecutive days. The combined effect leaves the Ministry of Tourism well-placed to seek out inward investment in the sector.

The Kingdom has six Unesco-designated World Heritage Sites and more than 10 archaeological sites, including AlUla, in addition to the huge tourism and entertainment seasons that the country is now offering.

Sports, leisure and nature

Saudi Arabia also hosts many major sports events, which have contributed significantly to an increase in the number of tourists visiting the country.

Andy Edwards

The extensive coastline along the Red Sea, home to coral reefs and important biodiversity, is one of the jewels in the Saudi crown for tourism. The Kingdom also has cultural diversity across 13 regions, all offering famous and authentic Arab hospitality.

It is an important hub in the Arab and Islamic worlds, home to the two Holy Mosques and is the seat of historical and ancient civilisations, ancient museums, and cultural heritage. There is also great natural beauty, not least its extensive beaches that are an ideal lure for tourists.

Reforms pave the way for investment

As part of its development plans, the ministry has eased the way in for investors, with a slew of reforms covering the organisation and management of tourist destinations and hospitality facilities.

There were 10 new regulations introduced at the end of 2022 to make the business of tourism easier. They encourage innovation, sustainability, better quality of services, and protection of the rights of tourists, as well as paving the way for new activities in the market, while also including supervision over the quality of services.

The Kingdom's Tourism Development Fund encourages tourism investments within the Kingdom and deals with investors directly by providing wide-ranging support for projects which are setting up restaurants, hotels, and other attractions.

Among the means of support on offer from the funds are loans, direct investment in relevant shares, guarantees covering some projects, and support in dealing with other government agencies involved.

Tourism can help bridge cultural communication between the Kingdom and the world which can, in turn, cultivate meaningful investment opportunities for investors at home and abroad, with the sector one of the fastest-growing in the world.

Tourism can help bridge cultural communication between the Kingdom and the world which can, in turn, cultivate meaningful investment opportunities for investors at home and abroad.

Its power can also be harnessed more easily via the use of the latest technology, with the ministry keen to show the way here.

It offers a range of electronic services to make dealing with bureaucracy efficient, covering tourism licenses for travel agencies, tour operators, tourist guides, and the providers of accommodation and their agencies.

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