Saudi Arabia’s Tourism Minister Ahmed Al-Khatib said in an interview with Asharq Al-Awsat newspaper that work is underway to establish new regulations and laws to facilitate the investment process in the Kingdom.
Saudi Arabia is witnessing a major transformation in its tourism sector after enacting a number of regulations and launching mega projects that enabled it to attract more than 100 million tourists last year, a target originally set for 2030.
Al-Khatib revealed the ministry’s move at a press conference held on Wednesday at Abu Falaj Heritage Palace in Al-Aziza, west of Abha city in the southern Asir region, to provide adequate long-term funding at competitive costs to boost investment in the Saudi tourism system.
In his address to Asharq Al-Awsat, the minister pointed to the tourism sector as the most notable achievement, revealing that in the first half of 2024, Saudi Arabia is on track to welcome 60 million tourists, with spending reaching SR143 billion ($38.1 billion), representing an increase of around 10 percent in tourist numbers and spending.
He added that tourism’s contribution to gross domestic product was expected to reach 5 percent by the end of the first half of the year, and was on track to achieve 10 percent, which would amount to 600-700 billion SAR in tourism revenue.
Al Khatib also spoke about the launch of a Bachelor of International Hospitality Management programme in partnership between the Ministry of Tourism, King Khalid University and the Hong Kong Polytechnic University.
He noted that a memorandum of understanding was signed between the Ministry of Tourism and the Colleges of Excellence Company with the aim of developing human resources in the tourism and hospitality sector and expanding international professional and technical universities and strategic partnership institutions.
Al-Khateeb said 10,000 training opportunities would be allocated for people working in the tourism sector in the Asir region, both inside and outside Saudi Arabia.
The National Tourism Strategy aims to attract more than 150 million domestic and international tourists by 2030. In 2023, the figure reached 109 million.
The minister added: “The Tourism Development Fund plays a key role in providing financing, allocating SAR 7.4 billion to realise over 100 tourism projects across the Kingdom, worth over SAR 35 billion.”
He noted that the fund has funded 10 major projects in the Asir region with a total value of more than 1 billion riyals, ranging from international hotels to mixed-use projects. International hotel brands include InterContinental Residences in Abha, DoubleTree in Khamis Mushait Governorate and Kayal Walk Boulevard.
