Sunday, October 27, 2024
Saudi Arabia, with its wealthy historical past and numerous tradition, is quickly positioning itself as a premier international vacationer vacation spot.
In step with Saudi Imaginative and prescient 2030, the federal government has positioned important emphasis on boosting the tourism sector, resulting in the institution of the Tourism Growth Fund (TDF) in 2020 by royal decree.
The TDF is designed to behave as a strategic associate within the sector’s progress, supporting Saudi Arabia’s ambitions of turning into a worldwide tourism powerhouse.
Working underneath the Nationwide Growth Fund, the TDF goals to draw overseas traders to key locations within the Kingdom whereas offering assist for large-scale tasks.
By collaborating with each private and non-private sector financiers, the Fund strengthens the nationwide tourism ecosystem and facilitates sustainable improvement.
One of many Kingdom’s major tourism targets is to make sure that the sector contributes 10% of the nationwide Gross Home Product (GDP) by 2030, whereas additionally creating round a million new jobs in numerous tourism-related industries.
With a give attention to Saudi Imaginative and prescient 2030’s broader targets, the Kingdom seeks to harness its wealthy heritage, gorgeous landscapes, and mega tasks to supply fascinating experiences.
By 2030, Saudi Arabia goals to welcome 30 million pilgrims yearly, positioning itself because the main vacation spot for Muslim non secular tourism worldwide.
SAR 40 Billion in Tasks Facilitated by the Tourism Growth Fund
Qusai Al-Fakhri, CEO of the Tourism Growth Fund, highlighted the Fund’s function in supporting the sector’s improvement by offering enterprise options and financing for giant, medium, and small tourism tasks.
Since its inception, the TDF has facilitated 137 tourism tasks, valued at roughly SAR 40 billion, enhancing tourism infrastructure throughout a number of areas within the Kingdom.
The Fund goals to spice up competitiveness, encourage home funding, and appeal to worldwide capital to diversify the financial system past oil.
Al-Fakhri additionally introduced a Memorandum of Understanding with Ennismore to determine a SAR 1.5 billion funding fund.
This partnership will carry 12 Ennismore way of life resorts to Saudi Arabia, including round 2,000 resort rooms and additional enhancing the tourism infrastructure.
Divehood: A Digital Platform Revolutionizing Underwater Tourism
A key instance of innovation supported by the Tourism Growth Fund is Divehood, a digital platform that connects divers with native and worldwide diving service suppliers.
Created to foster underwater exploration experiences, the platform is a testomony to Saudi Arabia’s dedication to diversifying its tourism choices.
Divehood’s founder, Haitham Khayat, credited the TDF for its function in bringing the platform to life.
“The Tourism Development Fund provided the funding and support that made it possible to realize our vision for Divehood in an unprecedented timeframe,” he stated.
Saudi Tourism Development Surges in 2024
The tourism sector in Saudi Arabia has proven exceptional progress, with the Kingdom main G20 nations in worldwide vacationer arrivals and tourism income progress throughout the first seven months of 2024.
In accordance with the UN World Tourism Barometer, Saudi Arabia noticed a 73% improve in vacationer arrivals and a 207% surge in worldwide tourism income in comparison with 2019.
The Worldwide Financial Fund’s September 2024 report following its “2024 Article 4 Consultations” praised Saudi Arabia’s tourism sector for contributing 11.5% to the GDP in 2023.
The report tasks that this contribution will rise to 16% by 2034, reflecting the success of the Kingdom’s tourism technique.
Authorities Dedicated to Sustainable Growth
In a current preliminary assertion for the 2025 fiscal yr, the Ministry of Finance introduced projected whole expenditures of SAR 1,285 billion, with revenues of SAR 1,184 billion.
Finance Minister Mohammed Aljadaan emphasised the federal government’s give attention to executing strategic tasks to attain sustainable improvement, significantly within the tourism sector, which is seen as a key driver of Saudi Arabia’s financial diversification efforts underneath Imaginative and prescient 2030.
