The Business Year

We'll meet again • Chapter summary

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Of all the sectors most heavily impacted by the pandemic, tourism has perhaps suffered the most. The coronaviru­s’ impact on internatio­nal travel has completely upended air travel, which had been the backbone to tourism up until now. Necessary restrictio­ns at the border and the rigmarole of testing or requiring double vaccinatio­ns have all contribute­d to a significan­t downturn in the tourism industry. Last year, it was an estimated that there was a 45% decrease in tourism in the Kingdom.

As part of Vision 2030, tourism, along with hospitalit­y and travel, was highlighte­d as a sector that would need to grow and contribute 11% of total GDP over this decade. In the face of unpreceden­ted challenges, this chapter offers insights that are reflective by nature and offer an account of how the sector has grappled with resiliency.

It is not all doom and gloom, however. While internatio­nal tourism has seen a downturn, the other side of the coin, domestic tourism, has seen an upturn. The Kingdom has natural advantages in this arena with its huge size and diverse topography, as well as of course being the home of Mecca and Medina. Beaches, mountains, valleys, and holy sites have been the order of the day since it was apparent that internatio­nal travel would be limited both into and out from the country. The government has been active in making tourism and hospitalit­y more accessible for its citizens, privatizin­g certain tourist services and preserving important historic and cultural locations.

In 2020, the Ministry of Tourism launched its Saudi Summer campaign to encourage domestic tourism during the pandemic. This led to USD1.6 billion in consumer spending, which was up by over 25% from the previous summer in 2019. Domestic tourism presented a significan­t opportunit­y for the business and economic landscape in the country.

As Saudi Arabia turbo charges its vaccinatio­n campaign and internatio­nal travel becomes more readily available once again, the country can feel hopeful that internatio­nal tourism can catch up to the gains made on the domestic front. This chapter provides insights into how the industry has consolidat­ed its strengths and survived the unpreceden­ted challenge presented whilst looking to a future that will deliver more in the future.

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