Saudi to invest $30.9bn into tourism by 2023

Crystal Chesters, February 18th, 2014

The Saudi government is investing heavily in the tourism sector to provide employment opportunities for Saudi graduates and cater for increasing tourism numbers.

The number of tourists visiting KSA is estimated to increase at a CAGR of 2% to 21.3 million over the period 2013 – 2023. Revenues are expected to increase to SAR 60.9 billion ($US 16.2 billion) by 2023 due to growth in the number of Hajj and Umrah tourists as well as a number of new international shopping centres.

The figures were discussed in a presentation delivered at the Saudi Commission for Tourism & Antiquities at the Riyadh leg of the annual Arabian Travel Market (ATM) roadshow. The event organisers, Reed Travel Exhibitions are conducting workshops ahead of this year’s event, to take place in Dubai from May 5 – 8.

Commenting on the figures revealed, Reed Travel Exhibitions portfolio director Mark Walsh said: ““The travel and tourism sector’s direct contribution to Saudi Arabian GDP is projected to increase at a CAGR of 4% to SAR 83.7 billion by 2023. Put that into perspective it is equivalent to about 9% of current Saudi GDP, which is a great achievement, as the Kingdom looks to diversify its economy away from hydrocarbon receipts.”

To cope with the increasing number of visitors, the Saudi government has outlined a plan to invest more than US$ 30 billion in its airports by 2020, including US$ 10 billion in private investment for the sector.

Walsh commented: “These four airports handle 91.5% of total air travel throughout the country, including 72.5% of domestic travel. Spending from leisure tourists is expected to rise at a CAGR of 4.4% to SAR 79 billion by 2023.”

Riyadh is the final leg of the six Middle East destinations being visited by the ATM team during its roadshow which took in Bahrain, Kuwait, Beirut, Muscat and Dubai last week.

A strong delegation from the Kingdom is expected at ATM. Led by the Saudi Commission for Tourism & Antiquities it includes, Saudia Airline, Umrah & Makarim Hospitality Group, Fursan Travel & Leisure, Hanco Rent a Car, EbreezTech, Rahhal International, and Unique Choice.