Saudi Arabia’s Minister of Tourism, His Excellency Ahmed Al-Khateeb, recently announced the launch of a transformative program designed to bolster the nation’s burgeoning tourism industry. The Tourism Investment Enabler Program (TIEP) is set to simplify and reduce the costs associated with doing business in the Saudi tourism sector for both international and domestic investors.
The flagship Hospitality Investment Enablers, a component of the broader TIEP, was developed through collaboration between the Ministry of Tourism and the Ministry of Investment. Its objective is to expand the hospitality offerings in key tourist destinations, contributing to Saudi Arabia’s goal of becoming a preeminent global tourism destination.
The initiative is expected to ignite private investment to the tune of SAR 42 billion (approximately $11 billion), anticipated to contribute an additional SAR 16 billion ($4 billion) to the annual GDP by 2030.
Strategic benefits of the program include improved access to government-owned land, expedited development procedures, and reduced market entry barriers. These regulatory adjustments are instrumental in decreasing operational expenses and promoting sectoral expansion.
Crucial to the initiative is its potential to benefit local communities. By localizing services such as contracting, design, and consulting, the program intends to directly stimulate various sectors. With an investment exceeding $800 billion to revamp the tourism infrastructure, Saudi Arabia demonstrates its commitment to upgrading industry standards and offering compelling investor incentives.
The country anticipates the creation of 42,000 new hotel rooms and about 120,000 job opportunities, which will further talent development and support Saudization endeavors.
The wider TIEP encompasses regulatory reforms to streamline tourism licensing for various business types and sizes, making the investment process more investor-friendly. Collaborative efforts across government entities have resulted in a nearly 22% reduction in annual government fees, with further reductions on the horizon.
Another significant element of TIEP is the forthcoming Tourism Investment One Stop Shop, set to launch later in the year in partnership with the Saudi Business Center. This facility will centralize all tourism-related services, assisting investors throughout their investment journey, and will be complemented by online and digital support.
Minister Al-Khateeb emphasized the Kingdom’s rich cultural diversity and experiences, highlighting the role of the tourism sector in the economic diversification envisioned by Saudi Arabia’s Vision 2030. In 2023, the country saw a 390% surge in demand for tourism activity licenses, a trend that is likely to continue as Saudi Arabia invests heavily in the sector to realize its potential.
Surpassing one of Vision 2030’s milestones seven years ahead of schedule, Saudi Arabia has already welcomed 100 million tourists. The Tourism Investment Enablers Program is poised to play a critical role in reaching an even more ambitious milestone of 150 million annual tourists.