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Saudi Arabia has launched a new initiative to boost private investments in key tourism sites across the kingdom by 42 billion riyals ($11 billion) and drive a projected annual increase in the GDP by SAR 16 billion ($4 billion) by 2030.
The Tourism Investment Enabler Program (TIEP), which was unveiled by the Saudi Minister of Tourism, Ahmed Al-Khateeb, aims to make it easier and more cost-effective to do business in the kingdom’s travel sector for international and local investors, a release stated.
The flagship Hospitality Investment Enablers, part of the wider TIEP, is designed by the Ministry of Tourism in collaboration with the country’s Ministry of Investment to increase the supply of accommodation capacity in targeted tourism destinations.
Saudi Arabia further expects the initiative to significantly impact the socio-economic landscape, creating 42,000 new room keys and approximately 120,000 job opportunities, furthering talent development in the kingdom.
Other key enablers in the pipeline include facilitating access to government-owned land under favourable terms, streamlining project development processes, and reducing barriers to market entry. Multiple regulatory adjustments are part of the effort to lower operational costs and encourage industry growth.
The initiative is also focusing on aiding local communities across tourism destinations by localising services such as contracting, design, and consulting.
The Ministry of Tourism stated it is working with partners across the government to achieve a more streamlined investment pathway, pushing annual government fees down by nearly 22% with a goal to reduce further in the future.
(Writing by Bindu Rai, editing by Daniel Luiz)
