Monday, March 11, 2024
During an exclusive conversation with Apratim Ghoshal, the Founder Editor, Travel And Tour World at ITB Berlin 2024, HE Mr. Fahd Hamidaddin, CEO, Saudi Tourism Authority, discussed the organization’s efforts to position Saudi Arabia as a leading destination for accommodations, tourism, and meetings, highlighting strategies to enhance the Kingdom’s appeal on the global stage.
Apratim Ghoshal: What are the key tourism opportunities that Saudi Arabia is looking to capitalise on in 2024?
Fahd Hamidaddin: Since 2019, Saudi Arabia has embarked on an ambitious journey to transform itself into a premier destination of the future, showcasing its open doors and hearts to the world. The Kingdom is home to more than 10,000 archaeological sites, including seven that are recognised as UNESCO World Heritage Sites, highlighting the rich cultural tapestry that Arabia has to offer.
Beyond its cultural wealth, Saudi Arabia boasts a diverse and vast landscape that challenges common perceptions. From the iconic Golden Arabian Dunes to the verdant Arabian Highlands in the south and the expansive 1,700-kilometer coastline along the Red Sea, the country presents a remarkable variety of topographies.
This geographical diversity not only offers a range of temperatures, ecosystems, and wildlife but also fosters unique culinary flavours, folklore, dances, and fashion styles across its regions. Given its topographical size—comparable to two-thirds of Europe—Saudi Arabia’s expansive territory is a testament to its potential as a dynamic and multifaceted destination.
Recognizing the importance of developing immersive experiences for visitors, Saudi Arabia is leveraging its inherent strengths, including the renowned hospitality of its people, who are considered the epitome of Arabian hospitality. This commitment to growth and development has positioned the Kingdom as one of the fastest-expanding countries in the G20, with an ambitious target of attracting 150 million visitors by 2030.
As part of this vision, numerous projects are underway or nearing completion, including the innovative Red Sea Global initiative. This project marks a new era of development along the Red Sea, encompassing 50 islands, with the first two already inaugurated with the prestigious St. Regis, and further developments, including the Ritz, on the horizon. This strategic vision and ongoing development underscore Saudi Arabia’s dedication to becoming a leading global destination, offering a rich tapestry of cultural, historical, and natural attractions.
In the coming year, Saudi Arabia is set to further cement its position as a burgeoning tourism hotspot with the launch of eight new resorts. Among these, NEOM stands out with its inaugural offering, Sindalah Island, which will feature 650 rooms across three hotels, set to open in October. Additionally, the historic downtown area of Jeddah, Al-Balad, a UNESCO heritage site with a history spanning 200 years, is embracing modernity by introducing three boutique hotels.
The ITB Berlin 2024 booth is a showcase of the Saudi Kingdom’s rapid development, offering a glimpse into the array of products and experiences soon available to visitors. With every passing week, Saudi Arabia unveils something new, demonstrating an unwavering commitment to expanding its tourism landscape and enriching the visitor experience. This relentless pace of development underscores the kingdom’s ambitious vision to transform into a leading global destination, offering a blend of heritage, luxury, and innovation.
The remarkable surge in Saudi Arabia’s tourism sector is fueled by its distinction as the world’s largest investor in tourism, with an astounding $800 billion allocated towards tourism infrastructure and developments.
This strategic investment is driven by a clear vision to diversify the nation’s economy, aiming to elevate tourism’s contribution from 3% to 10% of the total GDP. Additionally, this initiative seeks to create 1 million job opportunities for Saudi citizens, underscoring a commitment to economic development and social prosperity.
This expansive investment in tourism is already catalyzing positive changes across various sectors, including culture, sports, and the burgeoning MICE (Meetings, Incentives, Conventions, and Exhibitions) industry, positioning Saudi Arabia as a global leader in these domains. The kingdom’s efforts have transformed Riyadh into a vibrant hub for events, surpassing even Las Vegas in the number of weekly events, a testament to its dynamic event-hosting capabilities.
Beyond the pursuit of economic diversification, these initiatives are about enriching the lives of Saudi citizens through the creation of new career paths and opportunities in passion-driven sectors, particularly in sports. From golf to racing, boxing, and soccer, significant investments are being made to cultivate a rich sporting culture. For instance, in 2024, the focus will include the introduction of innovative soccer products, aiming to attract fans eager to witness global icons like Ronaldo and Neymar, not just in matches but also in training camps.
In essence, Saudi Arabia’s vast offerings, from its investment scale to its unparalleled hospitality and the continuous rollout of new products and experiences, illustrate a nation on the rise. It is a land rich in opportunities, striving to showcase its unique heritage and modern innovations to the world, thereby marking its status as a premier destination for tourists, investors, and sports enthusiasts alike.
Apratim Ghoshal: So, which specific region within Saudi Arabia is focusing on promoting for both the domestic and international markets?
Fahd Hamidaddin: Saudi Arabia offers a year-round destination, with its diverse climates making it an ideal location for both winter and summer getaways. During the cooler winter months, cities like Riyadh, Al-Ula, Al-Ahsa, and Jeddah become bustling hubs of activity, thanks to their splendid weather, hosting an array of events that attract visitors from near and far.
Conversely, the summer season shines a spotlight on coastal areas along the Red Sea and the picturesque Arabian Highlands in the south. While the surrounding Gulf and Middle Eastern regions grapple with intense heat, places like “Asir” district and the city of “Taif” offer a respite with their cool breezes and temperatures in the low 20s, making them perfect mountainous retreats.
Saudi Arabia’s tourism appeal is universal, catering to both domestic and international visitors. The country’s strategy initially focused on domestic tourism, capitalizing on a strong local consumer base with significant spending power—Saudis are among the highest-spending travelers globally. This approach was particularly beneficial during the pandemic, providing an invaluable opportunity for Saudis to explore and appreciate the beauty of their homeland, leading to sustained growth and repeat visits from local tourists.
However, the most significant potential lies in attracting international visitors, where expectations are set for a substantial increase. This balanced focus on nurturing domestic tourism while ambitiously expanding its international reach underscores Saudi Arabia’s holistic approach to developing its tourism sector as a cornerstone of its economy and a gateway for the world to explore its rich heritage and natural beauty.
Apratim Ghoshal: You already mentioned MICE, but can you describe the current landscape and future projection for MICE Tourism and leisure tourism?
Fahd Hamidaddin: Saudi Arabia, in its forward-thinking vision for economic diversification, has identified several key sectors as pivotal to this strategy, including technology, new energy, tourism, culture, and logistics. To propel growth and innovation within these areas, the kingdom is hosting a wide array of mega-events, spanning thought leadership conferences, trade and commerce exhibitions, and a variety of engaging activities bridging these themes.
In alignment with this ambitious agenda, Saudi Arabia has established a new authority dedicated exclusively to the business events sector, of which I am proud to serve as a board member. This entity focuses on elevating the kingdom’s profile as a premier destination for international conferences and exhibitions in the MICE (Meetings, Incentives, Conferences, and Exhibitions) industry.
Recognizing the intertwined nature of business and leisure travel, we’ve adopted a strategic approach to blend professional events with leisure activities. This initiative ensures that visitors engaged in business during the weekdays have ample opportunity to explore and enjoy the country’s leisure offerings on the weekends, whether traveling alone or with companions.
Last year marked a significant milestone, with the government financing over 11,000 events. This investment was not just about showcasing Saudi Arabia’s capabilities as a host but also aimed at demonstrating to the private sector the lucrative potential of event management. By initially funding and proving the viability of various events, we’re able to hand over successful models to private enterprises for future endeavours, while continuously exploring and introducing new event concepts. This dynamic approach underscores our commitment to nurturing a vibrant events ecosystem that supports economic diversification and enhances Saudi Arabia’s appeal as a combined business and leisure destination.
Apratim Ghoshal: What strategies and initiatives has Saudi Arabia implemented to ensure that sustainability in the growing tourism sector?
Fahd Hamidaddin: The foundation of our ambitious endeavors is deeply rooted in the commitment and vision of our leadership. The launch of mega-projects like NEOM, the Red Sea, and Al-Ula represents not just monumental ventures but also significant responsibilities.
Recognising the late entry into global destination development, we’ve taken advantage of learning from the experiences of others, allowing us to start with a clean slate. With ample resources at our disposal, we are positioned to adopt sustainable practices from the outset, leaving us without excuses for not prioritising sustainability.
In the Red Sea project, we are pioneering the concept of regenerative tourism, which goes beyond conservation to actively enhance the natural environment. This includes initiatives such as planting additional trees and mangroves and investing in marine research to protect turtles and other marine life. The specialised islands for turtle breeding are part of our efforts to achieve a net-zero tourism footprint.
Al-Ula offers a unique perspective on sustainability, emphasising community engagement and the integration of local populations into the sustainability narrative. The efforts here focus on nature preservation, rewilding with reserves, and breeding programs, highlighted by the birth of the first Arabian Leopard twins, among 21 species being reintroduced to their natural habitats.
NEOM stands as a testament to reimagining urban development with its initiative, The Line — a city designed to harmonise with nature rather than disrupt it. This project challenges conventional urban planning by prioritising pedestrian access over vehicle dependence, aiming for a net-zero carbon footprint. It represents a paradigm shift towards not only minimising environmental impact but also setting new standards in urban sustainability and responsible tourism from the ground up.
Through these projects, aiming for incremental improvements in sustainability but are setting out to redefine excellence from the beginning, embodying a commitment to responsible tourism that extends well beyond the norms.
Apratim Ghoshal: How is Saudi Arabia preparing for the World Expo 2030 Riyadh, and what steps are being taken to ensure the kingdom is ready for this significant event?
Fahd Hamidaddin: Saudi Arabia is channeling its collective intellect, resources, and partnerships towards crafting an unparalleled travel experience. We aim to create moments of delight for our visitors, ensuring every aspect of their journey is seamless and rewarding. By reimagining the entire travel process, we’re committed to providing an exceptional experience that exceeds expectations.
In addition to enhancing the traveller’s journey, we’re focused on constructing an expo city that will leave a lasting legacy. Our position as a later entrant in this arena presents a unique advantage, allowing us to glean insights from the successes of others. Armed with this knowledge, we’re poised to elevate these concepts to unprecedented levels, setting a new benchmark for excellence in travel and hospitality.
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