Imagine discovering a land brimming with untapped potential and a vision to transform itself into a global tourism powerhouse. Saudi Arabia is not just imagining this future; it is actively creating it. At the International Hospitality Investment Conference (IHIF Asia) in Hong Kong, the Ministry of Tourism unveiled the Kingdom’s ambitious plans and lucrative opportunities in the tourism sector, inviting global investors to join this transformative journey.
Paving the Way for Unprecedented Growth
Tariq Al-Shaghroud, Director General of Investment Planning and Attraction at the Ministry, emphasized Saudi Arabia’s dedication to offering a diverse array of tourism experiences. The Kingdom is committed to supporting investors with a plethora of incentives, making it an attractive destination for those looking to capitalize on the burgeoning tourism industry.
The Tourism Investment Enablers Program (TIEP) is at the forefront of this initiative, featuring the Hospitality Investment Enablers Initiative (HIE), which opens up numerous opportunities for investment in hospitality facilities across Saudi Arabia. This strategic move aims to significantly boost accommodation capacity in key tourist hotspots, with a target to attract private investments amounting to SR42 billion and elevate the annual GDP by SR16 billion by 2030.
Incentives and Achievements Fueling Investor Interest
The initiative is not just about numbers; it’s about creating impact. It is set to generate 120,000 new jobs, aligning with Saudi Arabia’s broader economic diversification objectives. Investors are offered enticing incentives such as corporate tax exemptions, VAT reductions, and access to government-owned land under favorable conditions, simplifying market entry and reducing costs.
Saudi Arabia’s tourism sector has made remarkable strides, welcoming over 109 million tourists in 2023, with 27 million international visitors, including over 20.9 million from Asia, who collectively spent SR96.6 billion. This surge in tourism underscores the confidence Asian markets place in Saudi Arabia’s tourism offerings and the promising investment landscape it presents.
A Call to Action for Global Investors
The Ministry of Tourism is extending an invitation to investors to be part of this monumental growth. In 2023, Saudi Arabia leaped to the 14th position globally in terms of international arrivals, climbing 11 places since 2019. The country also achieved the 12th rank in international tourism revenues, a rise of 15 places compared to 2019, as reported by the United Nations Tourism May 2024.
Saudi Arabia now leads among major tourist destinations, showcasing the highest growth rate in international arrivals and tourism revenue compared to pre-pandemic levels. For investors seeking to be part of the next big success story, Saudi Arabia stands as a beacon of opportunity, innovation, and growth.
