SAUDI ARABIA PREPARES FOR SURGE OF TRAVELLERS WITH TOURISM ‘THE NEW OIL’
▶ The kingdom is among the fastest-growing tourist destinations in the world and authorities plan to expand the sector with new hotels, writes
In September 2019, Saudi Arabia launched new visas as the kingdom prepared to welcome international tourists for the first time. The visas were available to travellers from 49 countries around the globe and it wasn’t long before people flocked to the kingdom to explore its ancient sites and modern cities.
But the influx of tourists was short-lived as the Covid-19 pandemic began about six months later, leading to global restrictions on travel.
Despite that, tourism within the kingdom thrived and Saudi Arabia is now among the world’s fastest growing tourism destinations, according to data from the UN World Tourism Organisation.
“During the pandemic, even the wealthiest – the yacht and private jet owners – had no option but to fly within Saudi Arabia,” Fahd Hamidaddin, chief executive of the Saudi Tourism Authority, told The
National at the Arabian Travel Market in Dubai this month.
They had no option but to travel within the kingdom,” he said. “Now they’re continuing to discover it by choice.”
With pandemic restrictions a thing of the past, Saudi Arabia is preparing for its next chapter of tourism.
Last year, more than 93.5 million explored Saudi Arabia – 77 million were domestic travellers and 16.5 million were international tourists.
Saudi authorities have committed $550 billion to tourism development across the kingdom by 2030, the largest global investment in the sector by far. The plans include the addition of 42,000 new hotel rooms, the most in the GCC, said Hamidaddin.
“In the 1920s the world came to Saudi for oil, but in the 2020s, we’re expecting the people of the world to come for tourism. And that’s why we say that tourism is the new oil,” he said.
This initial success has led the kingdom to reassess its initial 100 million visitor target it set as part of the Saudi Vision 2030 programme. A higher target will be set soon. The tourism sector has developed rapidly in Saudi Arabia, but authorities have plans to expand it further.
“The main challenges today are a shortage of airlifts, accommodation and experiences,” said Hamidaddin.
Among the companies aiming to add to the sector is Gathern, the best-performing tourism company in the sector. Hamidaddin said the platform has helped the kingdom to increase accommodation for tourists.
“Gathern is the alternative Airbnb, the Saudi version. It’s a home-sharing platform that started with a few hundred listings and I think today it has exceeded 20,000 across the country,” he said.
The properties available on the platform include villas, farms and caravans to yachts and chalets.
There is also a wide variety of room rates on offer, catering to different budgets – something that seems to be missing from many of the tourism megaprojects in the kingdom.
From Banyan Tree AlUla and the Six Senses Southern Dunes – which will open in the coming months – to the Four Seasons heading to Neom’s Sindalah Island, there are plenty of luxury properties on offer in the kingdom. But the tourism authority wants all visitors to feel welcome.
“It’s important that we cater for all travellers, by social income class and by travel purpose,” said Hamidaddin.
“People who travel for wellness are very different to those who travel for adventure, culture and events. And so we need to make sure that our offering is looked at holistically.”
In Riyadh – home to the towering Kingdom Centre and historic Masmak Fort – there are plenty of hotel options for travellers to choose from, ranging from budget stays to luxury boutique hotels.
But Hamidaddin said there was more to do more.
“Riyadh has so many hotels, many of which are on highways,” he said.
“But when I think of Dubai, the best performing hotels are not the ones on Sheikh Zayed Road. I think what we want is to ensure that travellers can come and find a place to stay, and things to do that are connected and accessible.”
Hamidaddin said there were
Saudi Arabia has allocated $550 billion for tourism development across the kingdom
other challenges facing Saudi Arabia’s tourism industry, including how the country was perceived in some parts of the world. “In every industry, in any market, when a new brand comes in, there are the early adopters, the followers, the laggers and there are the sceptics that will never try that brand, that will say it’s not for me, and that’s fine,” he said.
“The best way to address the perception of Saudi Arabia is by having travellers come to see it for themselves. And that has served us best.
“The early adopters have been blown away, not just by the offering of the place, but mostly by the people.
“And I think the people are the most telling about what this country is, and how different from the perceptions and preconceptions that people had.”
In the coming years, Saudi Arabia aims to attract more international travellers with several new destinations and developments.
In Diriyah, a 300-year-old city and birthplace of Saudi Arabia, ancient Unesco-protected sites have reopened to visitors. There are plans for a boulevard featuring amenities including an opera house, fashion houses, art galleries and cafes.
On the Red Sea coast, the site of ambitious luxury tourism projects, a new airport and the first three of the 50 hotels planned in the region will open this year.
The move will provide travellers with access to a cluster of unexplored islands.
In Neom, Sindalah Island will open early next year with the launch of three properties from Marriott, including the first Autograph Collection Hotels property in the kingdom.
In 2026, Trojena at Neom will open in the kingdom’s tallest mountain range.
The site will be the first major outdoor skiing destination in the GCC and has been chosen to host the 2029 Asian Winter Games.
Tourists will also be able to enjoy glamping stays at Collective Trojena, the region’s first eco-glamping site.
A slew of events, including electronic dance music festival MDLBeast Soundstorm, the Saudi Arabian Grand Prix, Riyadh Season and AlUla Skies hot-air balloon festival are also on the calendar.
Each of these developments and events are part of Saudi Arabia’s plans to diversify its economy away from oil, something that cannot be done without tourism.
“The WTTC [World Travel and Tourism Council] said one of every five new jobs came from tourism in the last decade, and one of every four new jobs will come from the industry in the coming five to 10 years,” said Hamidaddin.
“While other industries lose jobs to robots, these human-led sectors continue to provide and tourism sits at the forefront for us.
“What we’re doing, we are doing for our people, for our economy, and the world is going to reward us.”