Saudi Arabia has secured an impressive $13 billion in private sector investments aimed at enhancing its burgeoning tourism industry, according to Princess Haifa Al-Saud, the Kingdom’s vice minister for tourism.
Princess Haifa revealed that these investments are anticipated to significantly increase the number of hotel rooms by an estimated 150,000 to 200,000 within the next two years. The Kingdom’s ambitious goal is to elevate tourism revenue to $85 billion this year, a substantial increase from approximately $66 billion in 2023.
“The current GDP contribution is 4.5 percent, and we aim to get that to 10 percent by 2030. We started from 3.2 percent when we opened up for tourism,” Princess Haifa stated in an interview with Bloomberg.
The Kingdom’s vision for the future of tourism aligns with Crown Prince Mohammed bin Salman’s economic diversification strategy, which seeks to transition revenue streams from oil to sectors such as sports and technology. By attracting 150 million tourists annually by 2030, Saudi Arabia aims to position itself as a top global destination.
To achieve this ambitious target, Saudi Arabia is investing in large-scale projects like Qiddiya and expanding industries such as football to appeal to international visitors. Additionally, the Kingdom is the sole bidder for hosting the 2034 World Cup, further underlining its commitment to becoming a premier tourist destination.
In 2023, Saudi Arabia welcomed a total of 100 million tourists, primarily comprising local visitors. However, around 27 million international visitors also arrived, with many drawn to the country for religious or business purposes. Despite ongoing construction projects, leisure excursions currently represent a relatively small percentage of total travel within the Kingdom.
Looking ahead, the Saudi government plans to attract a staggering $80 billion in private investment in tourism by 2030 and allocate $800 billion to the industry over the next decade. In October 2023, the hospitality sector revised its 2030 target to 150 million visitors, reflecting the Kingdom’s ambitious aspirations.
“I think we will close this year with about 100 million visitors and almost 6 percent of contribution to gross domestic product, that’s why … (Crown Prince Mohammed bin Salman) instructed us to revise up our targets to 150 million visitors,” explained the minister of tourism at the time.
Of the revised target, an estimated 75 million travellers are expected to be international visitors, with the remaining 75 million originating domestically.