Saudi Arabia expects tourism to contribute more than $70 billion by 2030

24-01-23

Saudi Tourism Minister Ahmed al-Khatib said he expects the tourism sector to contribute between $70 billion and $80 billion to the kingdom's Gross Domestic Product (GDP) by 2030 as part of its plans to diversify its revenues beyond oil.

"Our goal is to reach 10 per cent contribution to GDP by 2030, that means injecting into the Saudi economy between $70 billion and $80 billion" a year, Tourism Minister Ahmed al-Khatib told a conference on new construction in Riyadh.

Al Jatib, quoted by the official Saudi television, Al Ejbariya, recalled that this contribution "was 3% in 2019 before the crisis" generated by the covid-19, a percentage that "at the end of last year was 4%".

The minister considered that Saudi Arabia has "competitive incentives" to attract tourism, and stressed that his country has taken important steps to implement its ambitious plans to promote the sector and encourage local and foreign investment.

"By 2030, more than 700,000 hotel occupants will be added in different regions of the country," al-Khatib added.

He also encouraged entrepreneurs to invest in the country's tourism sector, noting that the Saudi Tourism Development Fund has financed 25 tourism-related projects over the past 18 months worth 15 billion rials (about $3.993 billion).

In its quest to diversify its economy, highly dependent on oil exports, of which it is the world's largest supplier, Saudi Arabia is developing an ambitious multi-billion dollar plan to open up to international tourism.

Until three years ago, the country restricted the entry of international tourists, except for the millions of Muslim worshippers who visit Mecca and other holy sites each year.

In recent years, however, Crown Prince Mohammed bin Salman has become personally involved in boosting the international tourism sector and has presented numerous million-dollar projects, such as the futuristic city of NEOM, a Red Sea resort encompassing 22 virgin islands, and a luxury mountain tourism project.