Saudi to invest more than $800bn in tourism sector by 2033

Saudi Arabia plans to invest hundreds of billions of dollars into its tourism sector over the next ten years, according to an official from the country.

“The kingdom will invest more than $800bn during the next ten years,” said Saudi Arabia’s Minister of Tourism, Ahmed bin Aqeel Al Khateeb.

The minister was quoted as part of his remarks at the 10th Arab-China Business Conference, according to state-run Saudi Press Agency.

At the conference, the minister added that the tourism sector’s contribution to the country’s gross domestic product had also risen to 4.45 per cent.

He noted that the ministry has developed comprehensive plans for the travel and tourism sector, which is 3 per cent of the labour market.

With a 121 per cent increase from pre-pandemic international tourism levels, Saudi achieved 93.5 million visits in 2022.

As one of the world’s biggest investor in tourism, the country has committed $550bn to new destinations by 2030.

At the 22nd edition of the Global Summit of the World Travel and Tourism Council (WTTC) held in Riyadh towards the end of last year, Julia Simpson, WTTC president and CEO, said that WTTC members are set to invest more than $10.5bn in the kingdom.

Property consultancy Knight Frank said in its recent 2023 Saudi Report that the kingdom is preparing to rapidly expand its its hospitality sector by developing 315,000 additional hotel keys by 2030 at an estimated development cost of $37.8bn.

Faisal Durrani, partner and Head of Middle East Research at Knight Frank, said, “The volume of hotel room keys planned to be delivered in the Kingdom by 2030 is nothing short of incredible, with a total likely stock of close to 450,000 hotel rooms. A major part of the success of the kingdom’s future tourism and hospitality market will be its domestic tourism sector. The sector is already alive and thriving, with 65 per cent of Saudis already travelling within the kingdom between one- and three-times a month.

“Notably, just 17 per cent of the planned hotel supply falls in the three star or below category, and with 56 per cent of the kingdom’s population aged below 35, the demand for various accommodation types will likely continue to emerge as a significant consideration for the industry.”

This article originally appeared on Business Traveller Middle East