Tuesday, March 5, 2024
In a landmark announcement, Ahmed Al-Khateeb, the Saudi Minister of Tourism, introduced an innovative program set to significantly elevate the nation’s burgeoning tourism industry.
The groundbreaking Tourism Investment Enabler Program (TIEP) is crafted to streamline and make investing in the Saudi tourism sector more affordable for both international and domestic investors. This initiative positions Saudi Arabia at the forefront of the global tourism investment landscape by launching several strategic measures.
At the heart of TIEP lies the Hospitality Investment Enablers, conceived through a collaborative effort between the Ministry of Tourism and the Ministry of Investment. This key initiative aims to bolster the availability of lodging in select tourist locations, diversifying the Kingdom’s attractions and establishing Saudi Arabia as a premier tourism hub worldwide.
The initiative’s comprehensive strategy includes spurring private investment across crucial tourist sites within the Kingdom, anticipated to reach up to SAR 42 billion ($11 billion) and contribute an estimated annual increase of SAR 16 billion ($4 billion) to the GDP by 2030.
Featuring various strategic facilitators, the initiative seeks to enhance the feasibility and efficiency of business ventures by providing easier access to state-owned lands on advantageous terms, simplifying the project development workflow, and lowering market entry hurdles. These measures, along with several regulatory modifications, aim to reduce operational expenses and stimulate sectoral expansion.
A critical component of this initiative is its emphasis on positively impacting local communities in tourist areas. The initiative promotes local engagement in services such as construction, design, and consultancy, fostering direct benefits to diverse sectors. With an investment exceeding $800 billion to overhaul the tourism infrastructure, the initiative reflects Saudi Arabia’s dedication to raising industry standards and opening profitable avenues for investors.
The program is anticipated to reshape the socio-economic fabric of the nation by introducing 42,000 new hotel rooms and generating around 120,000 employment opportunities, which will enhance skill development and bolster Saudization initiatives.
Expanding TIEP, the scheme also incorporates regulatory enhancements tailored to meet the diverse requirements of investors in the tourism sector.
Efforts by the Ministry of Tourism, in collaboration with governmental partners, have streamlined investment processes, reducing annual government charges by nearly 22% with plans for further reductions.
An integral component of TIEP, the forthcoming Tourism Investment One Stop Shop, to be launched in partnership with the Saudi Business Center, promises a unified platform for all tourism-related services, facilitating investors’ journey from inception to operation, alongside offering digital integrations.
Achieving the Vision 2030 milestone of welcoming 100 million visitors well ahead of schedule, the Tourism Investment Enabler Program is poised to propel the nation toward an even more ambitious goal of attracting 150 million tourists annually.
Sunday, April 28, 2024
Sunday, April 28, 2024
Sunday, April 28, 2024
