Saudi Arabia is seeking to attract as much as $80 billion in private investment into the tourism industry as the Kingdom looks to share the financial burden of plans to become one of the world’s most visited destinations.
“I want the private sector to represent the majority of investment,” Tourism Minister Ahmed al-Khateeb said in an interview in Riyadh on Sunday, adding that the goal is to raise $60 billion to $80 billion by 2030. “This is a very ambitious target.”
Meanwhile, the Ministry of Tourism celebrated a significant milestone, reaching 100 million tourists by the end of 2023, reported Saudi Gazette, achieving this target seven years ahead of the Saudi Vision 2030’s timeline.
Al-Khateeb said the Ministry “facilitated the arrival of tourists from all over the world to Saudi Arabia,” with the 100 million tourists spending more than 250 billion Saudi riyals.
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The government plans to spend some $800 billion on tourism over the next decade as it prepares Saudi Arabia for a post-oil future that includes becoming a major hub for everything from metals mining to sporting events. The goal is to have 150 million tourists a year by 2030, with about 70 million coming from abroad.
Saudi Arabia’s Minister of Tourism, Ahmed al-Khateeb. (File photo)
While the state and its sovereign wealth fund have been the cash lifeline for tourism development thus far, getting foreign direct investment — particularly from the private sector — will be critical to the Vision 2030 timeline as mega projects ramp up and spending needs balloon, said James Reeve, chief economist at Jadwa Investment Co.
In 2023, Saudi recorded 100 million tourists, most of them locals. International visitors accounted for about 27 million, with a chunk of arrivals related to religious or business travel. Leisure trips are thought to have made up only a small percentage as Riyadh, in particular, is still a hot bed for construction.
Saudi is counting on the middle-class population in India and China to boost international tourism numbers and sees the UK as an appealing market, according to al-Khateeb, the minister. France and Germany are also interesting prospects, though destinations requiring longer-haul flights of more than eight hours remain challenging, he said.
Some $11 billion may come from private investment after the Ministry of Tourism this week launched a new program that aims to ease the investment process, including by reducing barriers to entry, according to a statement.
Source: Al Arabiya
