Saudi Arabia has recently reported a tremendous growth in the tourism spending, which is giving a new face lift to Saudi Arabia on the map of International tourism. This is mainly due to the Kingdom’s Vision 2030 plan that is seeking to diversification of economy and reducing oil dependency by targeting sectors such as travel and tourism.
This has led to increased development of tourism infrastructure, most of which are targeted at the international tourists, and domestic tourists within the country. Without doubt, one of the most significant shifts to this effect has been the new tourist visa regime that enables citizens from 49 countries to visit Saudi Arabia for up to 90 days. This change has ensured that people visiting the Kingdom can easily explore the cultural, historical and natural sites across the kingdom and thereby boosting the travel as well as tourism expenditures of the country.
Recent years a vast number of archaeological sites which were previously closed to the public can be found throughout Saudi Arabia. Today, due to the efforts towards the promotion of Package Tourism, areas that include AlUla, Diriyah, and the Mada’in Saleh which is recognized globally as a UNESCO World heritage site are now accessible to the tourist so that they could get a closer look to the glorious past of the nation. The opening of these historical places has drawn not only history enthusiasts but also the international tourists thus boosting the income from tourism sector independently.
In addition to historical sites, Saudi Arabia has become a hub for major global events. High-profile events such as the Formula 1 Saudi Arabian Grand Prix, Dakar Rally, and the Red Sea International Film Festival have drawn massive international audiences. These events, combined with the ambitious Riyadh Season, have sparked a surge in hotel bookings, restaurant patronage, and retail spending, all contributing to the rapid growth in tourist expenditure.
Apart from the events, the country is building some of the best envisioned tourism initiatives the world has witnessed. Of the current projects, the NEOM project through development of a futuristic mega-city, the Qiddiya entertainment city and the Red Sea Project focusing on luxury tourism and environmental sustainability are receiving much attention. Such changes are expected to place Saudi Arabia in the limelight, and recognized as a country of luxury and adventure travel which will in turn increase tourist expenditure.
The Saudi government has also not remained oblivious of the need to encourage the right business climate for tourism entrepreneurs in the kingdom. Saudi Arabia also has the income tax exempt on some incomes, VAT free on tourism services and land grant on tourism projects making the market attractive to companies in the travel and tourism industries. This has not only resulted into establishment of new business but has also boosted employment of locals and economic growth in the sector.
The government and private organizations such as the Saudi Tourism Authority and the Tourism Development Fund have been offering funding, training and marketing for the growth of the tourism industry in the kingdom. Efforts from the General Authority of Civil Aviation (GACA) to increase connection flights domestically to tourist areas have also made it easier for tourists to travel round the Kingdom, hence staying longer to spend more.
How Businesses benefit from the Tourism surge in Saudi Arabia
With increased spending on tourism in Saudi Arabia, the kingdom offers different opportunities that are open to both domestic and international business ventures. The implication of the continued rise in tourism means that a lot of sectors have the potential to grow and expand. Here’s how businesses stand to benefit:
- Increased Revenue: For instance, hotels and restaurants as well as other outlets of commodities recorded higher profits as the number of tourist visitors look for comfy places to eat, sleep and shop.
- Expansion Opportunities: The organizations in the field of touring and travelling such as tour operating and travelling agency has got the golden chance to expand its scale and enter into new markets as the demand grows.
- Government Support: The Saudi government provides special privileges to investors in the tourism industry by providing them tax holidays, various subsidies, waiving off taxes and duties as well as providing prime land at affordable cost suitable for new entrants as well as the already existing companies.
- Job Creation: Tourism increases employment with regards to various industries such as hospitality, transportation amongst others making a significant financial contribution to the local economy.
- Partnerships and Collaborations: International companies as well as local firms have more opportunities to partner in tourism related projects, something which is likely to create more opportunities in innovation and growth.
The establishment of tourism companies is an opportunity in the kingdom of Saudi Arabia with great possibilities and incredible potential. However, the process is fraught with difficulties. Analytix has got over fifteen years of experience in the business landscape of Saudi Arabia and can help you with entering into this process as your strategic solution provider. We help you with company formation as well as in operation and development of your business in the Saudi market. Everything, from government approvals to the day to day business operations will be handled by us thus enabling you to just concentrate on your tourism business. So whether you are an entrepreneur or an investor, Analytix is ready to assist the setting up of your tourism business setup in Saudi Arabia.
Conclusion
We are glad you’re here!
We hope that this blog has provided you with a much needed information about the impact of rising tourist spending in Saudi Arabia and the way it is enriching various ventures in the kingdom. The intention of Saudi government to boost tourism through Vision 2030 has created numerous opportunities in the country for the visitors, traders, investors both local and international aiming to establish their tourism business in the market of Saudi Arabia.
So no matter, if you are an entrepreneur, an investor or just interested in the tourism industry of Saudi Arabia there is so much waiting to be achieved.
If there is anything that you believe we have not covered or if you wish to carry further understanding on any single aspect, drop down your comments below.
Happy reading!
