Saudi Arabia Aims to Attract India and China’s High-Spending Tourists : Here’s What You Need to Know!

Written By: Anirban Bhattacharya

Anirban Bhattacharya

I am a Content Writer at Travel And Tour World, where I have been covering the global travel and tourism industry since June 2024. With five years of experience in digital journalism and SEO-focused content, I specialize in reporting on travel, tourism, aviation, hospitality, railways, and international developments. My work is built on thorough research, fact-checking, and clear, reader-focused reporting that transforms complex industry updates into accurate and accessible news. I am committed to producing credible, informative, and timely content that helps travelers and industry professionals stay informed about the latest trends, destinations, policies, and developments shaping the global travel landscape.

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October 10, 2024 8:02 PM

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Saudi Arabia is shifting its tourism focus to attract high-spending visitors from India and China as part of its new strategy to boost international tourist numbers. The Kingdom, which has already surpassed its goal of welcoming 100 million visitors by 2023, aims to attract 150 million annual visitors by 2030.

Speaking at an event in Perth, Sultan Al Musallam, Saudi Arabia’s Deputy Minister of Tourism for International Affairs, revealed the Kingdom’s plans to expand its e-visa program, currently offered to 63 countries, including China, to include more nations. “We want visitors who will contribute meaningfully to the economy,” Al Musallam said.

Focusing on High-Spending Markets

Al Musallam highlighted the significant potential of India’s growing middle-income segment. Indian tourists, once focused on nearby destinations, are now venturing farther, providing a unique opportunity for Saudi Arabia to position itself as a key destination for affluent travelers.

Traditionally, Indian visitors to Saudi Arabia have been driven by the large expatriate population and religious tourism. However, the Ministry of Tourism is collaborating with the Indian government to diversify beyond the Visiting Friends and Relatives (VFR) segment, seeking to attract tourists interested in luxury experiences and unique adventures.

As for Chinese tourism, Al Musallam is optimistic about a strong rebound, with an increasing interest in leisure tourism from Europe also contributing to Saudi Arabia’s growing appeal.

Tourism Sector Boom

In 2023, Saudi Arabia saw 104 million visitors, of which 27 million were international. Domestic tourism remains strong, with 77 million local visitors contributing to a 21.5% increase in domestic spending, totaling SR142.5 billion. The Ministry is aiming for a 50-50 balance between international and domestic tourists by 2030.

Last year, the tourism sector grew by over 32%, contributing SR444.3 billion to the Kingdom’s GDP. Leisure tourism is rising, and the Kingdom’s ambitious goal is for tourism to account for 10% of GDP by 2030, up from 3.5% in 2019.

Major Projects and Future Growth

Saudi Arabia is advancing several major tourism projects, including Neom, Red Sea, Qiddiya, Roshn, and Diriyah, all designed to cater to the growing influx of international tourists. New luxury hotels are also opening across the country, with five additional Four Seasons hotels planned over the next few years.

Neom and Red Sea are particularly significant, with multiple resorts and the Red Sea International Airport either operational or set to open soon. Additionally, the newly renovated King Abdulaziz Airport in Jeddah and the ongoing construction of King Salman Airport in Riyadh are expected to accommodate the rising number of visitors.

Riyadh Air, set to launch its first flights by 2025, is also preparing to enter the market, with its Air Operator Certificate (AOC) expected by the end of the year.

Foreign Investment Interest

Saudi Arabia’s tourism sector is attracting growing interest from foreign investors, with international hotel groups from countries like India, China, and Thailand showing keen interest. The Hyatt Group, for instance, held its first-ever board meeting outside the US in Saudi Arabia, signaling strong confidence in the Kingdom’s tourism potential.

Regional Collaboration and GCC-Wide Visa

Saudi Arabia is working with neighboring countries, including Bahrain, Qatar, Oman, the UAE, Jordan, and Egypt, to create diverse tourism routes and experiences. Discussions are also underway to introduce a GCC-wide tourism visa, which would revolutionize regional travel, although the timeline for implementation is yet to be confirmed.