Saudi Arabia’s tourism sector is on a roll, and the world is taking notice. The Kingdom recently showcased its booming tourism industry at the International Hospitality Investment Forum (IHIF Asia) held in Hong Kong. This event provided a platform for the Ministry of Tourism to present an array of enticing investment opportunities to global investors, as reported by the Saudi Press Agency (SPA).
Saudi Arabia’s tourism sector has witnessed phenomenal growth in recent years, welcoming over 109 million tourists in 2023 alone. Of these, 27 million were international visitors, with Asia contributing a significant portion, exceeding 20.9 million arrivals. This influx of tourists generated a substantial $25.7 billion in spending, solidifying Saudi Arabia’s position as a leading global destination.
To further amplify its tourism prowess, the Saudi government has unveiled ambitious initiatives aimed at enhancing accommodation capacity in key tourist areas. This program targets a whopping $11 billion in private investments, with the potential to boost the Kingdom’s annual GDP by $4.3 billion by 2030. Moreover, this initiative is expected to create 120,000 new jobs, aligning with Saudi Arabia’s broader economic diversification goals.
Investors are being enticed with a compelling package of incentives, including reductions in VAT, corporate tax exemptions, and favorable access to government-owned land. These measures simplify the investment process, making entry into the Saudi market both easier and more cost-effective.
The Ministry of Tourism highlighted the remarkable progress achieved in the sector, particularly the country’s impressive climb in international rankings. In 2023, Saudi Arabia secured the 14th spot globally in international arrivals, a remarkable leap of 11 positions since 2019. The Kingdom also climbed 15 places to claim the 12th position in international tourism receipts.
The UN Tourism Barometer for May 2024 further underscored Saudi Arabia’s success, ranking the country as the top-performing large tourism destination in terms of international arrivals growth.
Investors at IHIF Asia were encouraged to seize this opportunity to capitalize on the ongoing developments and lucrative investment prospects within the burgeoning Saudi tourism sector.
