Saudi Arabia’s tourism sector to contribute more than $70 billion in 2019

Wednesday, April 24, 2019

According to a data from the World Travel and Tourism Council the Saudi Arabia’s travel and tourism sector worth more than $70 billion and contributing majorly to the country’s GDP. Saudi Arabia  has to offer a lot during this year’s Arabian Travel Market (ATM)  as exhibitors prepare extensively for it.

Colliers, ATM ‘s research partner released a data that revealed international arrivals to Saudi Arabia are expected to increase 5.6% per year from 17.7 million in 2018 to 23.3 million in 2023.

Over the next decade religious tourism will be the bedrock of the sector  and is set to attract 30 million pilgrims to the Kingdom by 2030. There will be an increase of 11 million from the 19 million Hajj and Umrah pilgrims visiting the country in 2017.

Danielle Curtis, Exhibition Director ME, Arabian Travel Market, said that at ATM, they were witnessing a growth with the total number of delegates arriving from Saudi Arabia increasing 42% between 2017 and 2018. 33% of delegates, exhibitors and attendees were interested in doing business with the Kingdom.

The key drivers in the growth of  international tourism in the Kingdom was due to relaxed access to visa through online portals like Sharek and the growth of Umrah plus market. This had combined religious and leisure market.

Over the next decade the country will get more attractive as Vision 2030  has set aside $64 billion to invest in culture, leisure and entertainment projects.

The Red Sea project is expected to grow the kingdom’s GDP by US$5.86 billion (SAR22 billion) and will consist of an airport, marinas, up to 3,000 hotel rooms and various recreational activities. This will be the first phase.

Amaala, a new ultra-luxury tourism megaproject is earmarked for completion in 2028  and its development was announced by the Saudi Arabia’s Public Investment Fund last year.

There will be an addition of 2,500 hotel rooms – further boosting the accommodation offering for both domestic and international visitors alike.

Curtis said that Saudi Arabia will see a vast expansion of its hotel and resort inventory during 2019, with over 9,000 keys of three, four and five-star international supply expected to enter the market despite major cities such as Riyadh and Jeddah experiencing an overall drop in ADR during 2018.

Due to the new supply there will be additional competitive pressure on hotels performance across the country. The projected growth in visitor numbers in both the domestic and international markets is expected to boost occupancy levels throughout 2019.

ATM 2019 will highlight the kingdom’s offerings and development  and the developments to happen like the The Red Sea Development Company, Saudia – Saudi Arabian Airlines, Makarem Hotels, AlfaOne Concierge and Saudi Commission for Tourism and National Heritage.

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