Saudi Arabia witnesses $13bln boost in tourism investments

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RIYADH — Saudi Arabia has attracted approximately $13 billion in private investments for its burgeoning tourism sector, positioning the Kingdom as a burgeoning travel destination.

These investments are set to introduce between 150,000 to 200,000 new hotel rooms within the next two years, as part of the nation's ambitious plans to amplify its tourism offerings.

Princess Haifa Al Saud, Saudi Deputy Minister of Tourism, in an interview with Bloomberg, revealed the Kingdom's goal to elevate tourism revenues to $85 billion this year, up from around $66 billion in 2023. This initiative aligns with Crown Prince Mohammed bin Salman's broader economic vision, which seeks to diversify the nation's income streams beyond oil to include sectors like sports and technology.

Currently contributing 4.5% to the GDP, the tourism sector aims to hit a 10% contribution by 2030. Saudi Arabia is channeling significant funds into large-scale development projects such as the Qiddiya Entertainment City and has also made headlines with substantial investments in football, further enhancing its global appeal as a travel destination.

Notably, Saudi Arabia is the sole bidder for hosting the 2034 World Cup. The Kingdom welcomed 100 million tourists in 2023, predominantly domestic travelers, with international visitors accounting for about 27 million. The bulk of these arrivals were for religious or business purposes, with leisure travel expected to rise as several major tourism projects are still underway.

The government's vision extends to securing up to $80 billion in private tourism investment by 2030, alongside a plan to invest around $800 billion into the sector over the next decade.