The travel and tourism industry in Saudi Arabia has seen a remarkable expansion, growing by over 32 percent in 2023, and injecting a historic SR444.3 billion (approximately $118.4 billion) into the nation’s economy according to recent findings.
A report from the World Travel and Tourism Council’s 2024 Economic Impact Research showcased the Kingdom’s significant contribution to GDP, job creation, and increased visitor expenditures.
With the arrival of 100 million tourists in 2023, the Kingdom accomplished its Vision 2030 tourism objectives seven years ahead of schedule. The target was subsequently elevated to 150 million tourists, underlining Saudi Arabia’s ongoing commitment to enhancing the sector.
Saudi Arabia’s travel and tourism sector’s extraordinary achievements last year mark a pivotal moment in its journey toward becoming a global tourism leader,
stated WTTC’s president and CEO, Julia Simpson.
Simpson also emphasized the sector’s potential to shape the nation’s diversified economy and contribute to worldwide travel and tourism.
Last year’s growth in the sector accounted for 11.5 percent of the overall economy, a nearly 30 percent uptick from previous highs, underscoring its essential role in the country’s economic framework.
The industry also experienced a notable boost in employment figures, with the addition of 436,000 new jobs, surpassing 2.5 million in total and representing almost one in five jobs within the country.
Employment in this domain rose by about 24 percent from its last peak, successfully rebounding from losses incurred during the pandemic by 2022.
International visitor spending witnessed a dramatic increase of nearly 57 percent, reaching SR227.4 billion and shattering prior records by SR93.6 billion. Domestic spending was not left behind, growing by 21.5 percent to SR142.5 billion.
Saudi Minister of Tourism Ahmed Al-Khateeb acknowledged the WTTC’s report as confirmation of the rapid progress in renovating Saudi Arabia’s tourism industry.
The Kingdom plans to roll out a novel tourism strategy this year, which will incorporate artificial intelligence and cutting-edge technology, as disclosed by Ministry of Tourism’s chief special adviser Gloria Guevara Manzo.
On the margins of the Future Aviation Forum 2024, Manzo highlighted the strategy’s focus on maximizing Saudi assets like culture, history, heritage, and hospitality.
Outlook for 2024
The WTTC anticipates the sector to continue its brisk growth in 2024, with projected GDP contributions of SR498 billion and employment increasing by over 158,000 jobs, nearing 2.7 million in total.
Expectations are set for international visitor spending to reach SR256 billion, while domestic visitor spending is likely to hit SR155.2 billion.
By 2034, the sector is forecast to offer SR836.1 billion to the GDP, making up nearly 16 percent of the national economy, and employing over 3.6 million people, with one in five Saudis working in tourism.
Regional perspective
The Middle East as a whole also experienced significant growth in 2023, with the sector expanding by over 25 percent to nearly $460 billion.
Employment in the region hit almost 7.75 million, and international spending increased by 50 percent to $179.8 billion, with domestic spending rising by 16.5 percent to over $205 billion.
For 2024, the WTTC foresees the sector’s growth in the Middle East to continue, with GDP contributions expected to reach $507 billion, job numbers rising to 8.3 million, international visitor spending estimated at $198 billion, and domestic visitor spending expected to exceed $224 billion.