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                          Saudi to be among world’s big leisure tourism hubs by 2030

                          September 16, 2020
                          in Hospitality, Real Estate
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                          Saudi to be among world’s big leisure tourism hubs by 2030
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                          Massive investments worth over $810 billion in mega tourism projects across Saudi Arabia is expected to transform the kingdom into one of the largest leisure tourism sectors in the world between now and 2030, according to a research conducted by the Middle East and North Africa Leisure Attractions Council (Menalac), the leisure and entertainment industry council representing the Middle East’s dynamic leisure attractions sector.

                          These include the $500 billion mega-development Neom which leads the list of the mega projects followed by the $10 billion Qiddiyah Project, spread across 334 sq km in Riyadh.

                          The third project is Amaala, or the Saudi Riviera, located in the northern region with an area of 3,800 sq km, and developing islands in the Red Sea with a total area of 34,000 sq km.
                          Once completed, it will deliver a futuristic mega sustainable city.

                          According to the report, Saudi Arabia is looking to more than double its investment in recreation from the current 2.9% to 6% by 2030.

                          Mishal Al Hokair, Board Member of Menalac, said: “Saudi Arabia has an array of dynamic plans and attractions planned over the next few years, each of which will add to the fast-growing Leisure and Entertainment sector.”

                          “Its Vision 2030 will change the entire economic and tourism landscape of not only Saudi Arabia but the entire Middle East region, that will have a massive positive knock-on effect on the leisure tourism industry,” noted Al Hokair.

                          “Once the current Covid-19 situation improves, the investment and development in Saudi Arabia’s tourism sector will bring massive opportunities for the industry. It is time for everyone to prepare for the next big growth,” he added.

                          Saudi Commission for Tourism and National Heritage (SCTH), the country’s tourism regulator, said the mega tourism projects being developed by Public Investment Fund will be spread over an area of more than 64,634 sq km, with a value exceeding $810 billion.

                          In addition, SCTH will be developing museums in various Saudi regions and preserving Saudi heritage with a cost of more than $1.3 billion.

                          Saudi Arabia foresees that national tourism will significantly contribute to the gross domestic product as the most growing non-oil economic sector. The tourism revenues increased to more than SR193 billion ($51 billion) in 2017, and to more than SR211 billion ($56 billion) in 2018, SCTH said in a report.

                          In 2017, the kingdom’s tourism sector had attracted $28.6 billion, more than six times the world average in tourism capital investment, it added.

                          Despite the current situation with regards to Covid-19, Saudi Arabia is pushing ahead with the construction of some of these massive projects. A number of construction contracts have recently been awarded following the partial re-opening of the economy after the lockdown.

                          Red Sea Development Company has recently awarded construction contracts worth $1 billion while Neom has awarded Bechtel and Aecom program management contract.

                          Changes and growth in the Saudi tourism landscape will help leisure attractions operators in the Middle East and North African (Mena) countries. The recent reopening of the land borders by Saudi Authorities will help boost regional tourism in the GCC region.

                          SCTH plans to facilitate investment SR171.05 billion that will boost the tourism industry capacity and the number of hotel rooms to 621,600 rooms and boost the tourism sector’s contribution to the GDP by 3.1 percent, and increase direct employment to 1.2 million jobs.

                          Prakash Vivekanand, the board member of Menalac, said: “The latest news from Saudi Arabia is very encouraging. The government wants to push ahead with the mega projects that will not only boost the country’s gross domestic product (GDP) but also the tourism sector.”

                          It will create massive opportunities for all the players in the leisure attractions business and we could count on an exciting future for the industry in the Mena region.”

                          According to Saudi Arabia’s General Investment Authority (Sagia), the country wants to increase investment in recreational facilities to 6 percent from the current 2.9 percent per annum – more than double the current level, as part of Saudi Vision 2030.

                          TradeArabia News Service
                          15/09/2020

                          Tags: constructionprojectsreal estateSaudi Arabiatourism
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