Tourism helps Saudi economy diversify away from oil

Saudi Arabia’s concerted efforts to attract more tourists have seen the kingdom rise from the 43rd to 33rd spot on the global tourism ranking.

“This is the second biggest improvement in the global index,” Princess Haifa Al Saud, Saudi Arabia’s assistant tourism minister, said at the World Economic Forum on Wednesday.

Developing the tourism sector is part of the kingdom’s plans, spearheaded by Crown Prince Mohammed bin Salman, to diversify the economy away from oil.

Encouraging numbers

Saudi Arabia aims to attract more than 70 million tourists this year, up from 62 million in 2013. 

The first Quarter of 2022 saw a 130 percent increase in visitors compared to the last quarter of 2019. 

Officials said that in 2021, domestic travel in Saudi Arabia reached an all-time high. The country also achieved 72 percent of pre-pandemic levels of travel.

Tourism Projects

The Red Sea project, a high-end development that includes resorts on islands and inland, is expected to open in the next few years in Saudi Arabia.

The Red Sea coast has already seen several large-scale projects, such as the “NEOM” futuristic city and the ensuing resorts and tourist facilities besides Jeddah’s historic landmarks. Tourism offerings also include historic buildings

There is also religious tourism, represented by Hajj and Umrah, to the holy cities of Makkah and Madinah. Millions of Muslims make the annual pilgrimage. 

 The kingdom plans to make the pilgrimage easier, especially after disruption caused by the Covid-19 pandemic.

Amendments ease 

Princess Haifa told the World Economic Forum meeting that domestic tourists formed the bulk of the 63 million visitors recorded in 2021, a significant rise compared to the worldwide decline in tourist numbers.

To maintain the focus on developing tourism by improving the related business environment, amending regulations and policies has been the government’s focus. 

For example, obtaining a license for tourism activities used to take two weeks, but now it only takes 120 seconds, she said.

Applying for an e-visa used to take five months, but now it takes five minutes or less.

She added that the government took a keen interest in travel and tourism and invested heavily in the sector, such as providing funds for training 110,000 people.