In a new episode of Marketplace Middle East, CNN’s Eleni Giokos explores how Saudi Arabia’s oil diversification plans are opening doors for those in the private sector, with hotel and hospitality brands capitalising on the country’s burgeoning tourism industry.
Religious tourism has long been a major driver for Saudi Arabia’s economy, but the government is now targeting growth in its wider travel and tourism industry.
The Kingdom’s Minister of Tourism Ahmed Al-Khateeb speaks about the diversification strategy, “We have 1.7 billion Muslims who want to come and visit the two holy cities. This is good thing and therefore we will continue to receive them, we’ll continue to serve them. We have announced our target to upgrade and to increase the capacity to cater for 30 million by 2030. And this is a very, very big number. No one can compete with Saudi Arabia on this market. However, it is in our interest to push leisure, business, visit family and friends, and other various purposes like wellness, medical and so forth.”
Saudi Arabia announced its tourism visa in 2019, and Al-Khateeb says numbers have increased since then, “The international arrivals last year hit a record number of 27 million and our target is to reach to 70 million international arrivals by 2030, which will put Saudi Arabia as one of the top five largest countries.”
With this projected increase in tourists, the hospitality sector is expected to grow too. Brands including hotel operator Hilton have been expanding significantly across the Kingdom. Hilton’s President in the Middle East and Africa, Guy Hutchinson, says the company plans to quadruple its presence in the region’s fastest-growing economy, “Saudi is one of the most dynamic tourism pipelines in the world. Without a doubt. I don’t think there are too many economies around the world that have the tourism sector as such a focus in terms of its part to play in the future of GDP. So, it’s a phenomenal space and we are seeing that right now.”
Hutchinson tells Giokos that religious travel is a significant area of growth, but that general tourism across the country is also increasing, “Religious tourism is a very important part of the overall numbers into Saudi Arabia without a doubt. But we’re seeing significant growth all across the kingdom because not just in those spaces, but across primary cities, secondary cities. And there’s so much opportunity all the way across the segmentation of the hotels brands that we’re able to offer.”