· Tourism related sectors expected to generate
3.3 per cent of KSA GDP in 2019
· Hospitality, leisure and entertainment will play
a major role in realising Saudi Vision 2030, according to panellists at Arabian
Travel Market 2019
· Total number of Saudi Arabia’s domestic and inbound
trips projected to rise to 93.8 million by 2023
Tourism will play a major role in reducing Saudi
Arabia’s dependence on oil revenues, according to experts speaking at Arabian Travel
Market (ATM) 2019.
In a panel discussion titled ‘Why
Tourism is Saudi’s New ‘White Oil’’,
which took place on ATM 2019’s Global Stage, representatives from Saudia Private Aviation (SPA),
Dur Hospitality,
Colliers
International MENA, Marriott
International, Jabal Omar Development Company and Saudi General Investment
Authority discussed opportunities related to upcoming
tourist-focused developments and visa reforms.
Kingdom-based industries in direct contact with
tourists are expected to generate more than USD 25 billion this year –
approximately 3.3 per cent of Saudi Arabia’s GDP – according to figures
released by the World Travel and Tourism Council (WTTC).
Reema
Al Mokhtar, Head of Destination Marketing, Jabal Omar
Development Company, said: “Our country has beautiful geographic diversity and a
host of cultural attractions so, once visitors come into the kingdom and see
the different projects lined up for them, I think it will market itself.”
Saudi Arabia’s domestic tourist trips are
projected to rise by 8 per cent in 2019, while inbound visits from
international markets are expected to grow by 5.6 per cent per year, according
to research conducted by Colliers
on behalf of ATM 2019.
With the creation of new local attractions
thanks to the Quality of Life Vision Realization Program and the General
Entertainment Authority (GEA), Saudi Arabia’s overall number of tourist trips
is on course to hit 93.8 million by 2023, up from 64.7 million in 2018.
Commenting on Saudi residents’ historic tendency to travel out of the country
for entertainment and leisure, John
Davis, CEO, Colliers International MENA, said: “I think some
airlines could probably double their number of [weekend] flights and still fill
the seats. So, when the country opens [new local attractions], people will
utilise them.”
By helping Saudi Arabia to further boost its
domestic and inbound tourist numbers, panellists agreed that ‘giga’ developments
will prove crucial in helping to meet the economic diversification targets set
out in Saudi Arabia’s Vision 2030.
Alex
Kyriakidis, President and Managing Director Marriott
ME&A, Marriott International, said: “The challenge to date has been a lack
of opportunities for domestic tourists. However, if you look at developments
like The Red Sea Project and Qiddiya, which are completely reinventing
destinations that will appeal to Saudi residents, you will find everything from
hospitality and wellness to entertainment and sports. For many segments of the
local population, these projects will stimulate spending in the country.”
Despite the more than 9,000 keys of three- to
five-star international supply due to enter the market this year, the panel
agreed that the kingdom is well placed to sustain and even increase occupancy
levels over the coming years thanks to a combination of giga-projects,
high-profile events, entertainment and religious tourism.
Dr
Badr Al Badr, CEO, Dur Hospitality, said: “We’ve been in
the hospitality sector for 42 years and we’ve never seen anything like this.
What’s happening now is earth shattering. The change of mindset in terms of
opening up this country for visitors – whether for religious or general tourism
– is definitely something to be celebrated.”
Visa-related
improvements are also expected to drive growth in Saudi Arabia’s tourism
sector. With the roll-out of 30-day Umrah Plus Visas, eVisas for tourists and
specialist visas for events such as the Formula E Championship’s E-Prix, the
kingdom looks set to attract more international visitors than ever before.
Majid
M AlGhanim, Director of Tourism,
Saudi General Investment Authority, said: “Many of the reforms that are
happening right now, such as 100 per cent ownership and easier registration for
foreign companies, involve regulation. Hopefully, we will see lots of
international investment in Saudi destinations very soon.”
Running until
Wednesday, 1 May, ATM 2019 will see more than 2,500 exhibitors showcase their
products and services at Dubai World Trade Centre (DWTC). Viewed by industry
professionals as a barometer for the Middle East and North Africa (MENA)
tourism sector, last year’s edition of ATM welcomed 39,000 people, representing
the largest exhibition in the history of the show.
For full details of the ATM 2019 event programme,
visit: https://arabiantravelmarket.wtm.com/en/events/Events-programme.
Tags:Arabian Travel Market (ATM) 2019
