KSA boosts tourism spend by 66%, to $46.6 billion

Religious tourism in Saudi Arabia is expected to create a steady stream of new hotel openings over the next five years amid a jump in pilgrim numbers, as part of the nations US $72 billion (SAD 270) National Transformation Plan.

Saudi Arabia wants to more than double the number of Umrah pilgrims, from 6 million to 15 million, the National Transformation Plan revealed last week, according to The National.

The report also notes the planned increase in Haj pilgrims from 1.5 million to 2.5 million by 2020, while Saudi Arabia intends to boost tourism spending by two-thirds to $46.6 billion (SAD 174.8 billion), up from $28 billion (SAD 104.8 billion).

“Although currently there are no definitive plans available regarding where the additional revenue will be spent, we expect that the priority targets will include expansion of tourism infrastructure in the country, training Saudi workforce to participate in the growth of this sector, and developing and upgrading tourism facilities across the country," said TRI Consulting associate director Rashid Aboobacker.

The plan proposes raising the number of hotel rooms and apartments by approximately 40% to 621,000, up from 446,000 at present.

“There is a gap in demand and supply and that is why you see so much of hotel construction," said Al Tayyar Travel Group head of tourism and regional general manager Arabian Gulf region Francis Dharmai.

The hospitality and tourism sectors are considered to be a priority thanks to their employment potential for Saudi nationals in the private sector.

The National Transformation Plan aims to create 370,000 additional direct jobs in tourism and the national heritage sector, totalling 1.2 million jobs by 2020.