Saudi Arabia is on a mission to transform its tourism industry into a major economic pillar. With the aim of securing up to $80 billion in private sector investments by 2030, the kingdom is working to diversify its economy.
As part of its strategic plan, known as Vision 2030, the nation aspires to draw in 150 million travelers within the next six years. The Minister of Tourism, Ahmed Al-Khateeb, emphasized the importance of private capital in achieving these objectives, stating that the private sector should account for the majority of the investment.
In an astonishing feat, Saudi Arabia welcomed 106 million visitors in 2023, who significantly boosted the economy by contributing over 250 billion riyals (approximately $66.66 billion).
Targeting the burgeoning middle classes in countries like India and China, as well as tapping into the UK market, are part of Saudi Arabia’s strategy to increase international tourist arrivals. However, Al-Khateeb acknowledged that attracting travelers for long-haul flights exceeding eight hours remains a challenge.
A recent initiative has been initiated to stimulate private investments worth 42 billion riyals ($11 billion) in key tourist sites, which is forecasted to add SAR 16 billion ($4 billion) annually to the GDP by 2030.
The Tourism Investment Enabler Program (TIEP) was designed to streamline and reduce costs for investors in the kingdom’s travel sector. This initiative is anticipated to have a profound effect on the socio-economic fabric of the country, potentially creating 42,000 new hospitality units and around 120,000 job opportunities.
As part of Vision 2030, Saudi Arabia has already been channeling substantial funds into its travel industry, with an overarching $800 billion investment plan to revolutionize tourism.