Investment in Saudi's tourism, hospitality industry to reach almost $107 billion by 2028
The industry is the second most important non-oil contributor to the Kingdom’s GDP, says TRI consulting
The Saudi Arabian government's investment in hospitality and tourism is fuelling rapid growth in the industry. The sector’s value is forecast to grow to SAR 400 billion ( $107 billion) by 2028 with direct employment levels projected to reach 749,000 jobs, according to TRI Consulting's report: Industry Insights, Saudi Arabia - The Evolution of the Kingdom’s Tourism Industry.
Saudi Arabia’s tourism and hospitality industry is the second most important non-oil contributor to the Kingdom’s GDP which, according to the World Travel and Tourism Council, was estimated at SAR 240.9 billion or 9.4% of total GDP in 2017, the report revealed.
Furthermore, the report also showed that the travel sector accounted for 5.3% of the country’s total employment with an estimated 644,000 jobs.
The figures come on the back of Saudi Arabia’s Vision 2030 economic diversification agenda, which aim to push forward government-led tourism projects that the reports say will play in supporting the post-oil economy envisioned by the Kingdom.
The reported highlighted how in 2018, the market witnessed the launch of several world-class tourism and hospitality projects by Saudi Arabia’s Public Investment Fund (PIF), including NEOM, The Red Sea Development Project, Amaala, Qiddiya District and the Wadi Al Disah Development Project.
The report went on to outline how these developments are aimed at positioning Saudi Arabia as a leading leisure and cultural tourism destination through the creation of a diverse tourism offering.
“This strategy shifts the country away from the current reliance on religious visitors towards attracting more legitimate tourists and provides compelling investment opportunities for the private sector, while preserving the nation’s cultural and environmental heritage,” said the report.