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Saudi Arabia Ranks 2nd Globally as Fastest Growing Tourism Destination

 International football player Lionel Messi with his family during a vacation in Saudi Arabia (Asharq Al-Awsat)
 International football player Lionel Messi with his family during a vacation in Saudi Arabia (Asharq Al-Awsat)
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Saudi Arabia Ranks 2nd Globally as Fastest Growing Tourism Destination

 International football player Lionel Messi with his family during a vacation in Saudi Arabia (Asharq Al-Awsat)
 International football player Lionel Messi with his family during a vacation in Saudi Arabia (Asharq Al-Awsat)

A report issued by the World Tourism Organization (WTO) revealed that the number of visitors coming to the Kingdom increased by 64 percent during the first quarter of 2023, compared to the same period in 2019.

 

Experts told Asharq Al-Awsat that the Kingdom was able to place itself on the world tourism map, and is witnessing great leaps in international indicators after facilitating all procedures related to the entry of visitors through electronic visas, which contributed to doubling the number of tourists coming to the country.

 

According to the report, Saudi Arabia ranked 13th globally, advancing by 12 places on the World Tourism Organization (WTO) index, as one of the top countries receiving international tourists in 2022, compared to the 25th place in 2019.

 

The Kingdom received about 7.8 million tourists for all purposes during the first quarter of this year, which represents the highest quarterly performance in history, achieving a growth of 64 percent. Thus, the country ranked second among the fastest growing tourism destinations during this period, according to recent data received by the organization.

 

The Kingdom also advanced 16 places in the international tourism revenue index, achieving the 11th place in 2022, compared to 27th place in 2019 globally.

 

Saudi Minister of Tourism Ahmed Al-Khatib said that this achievement was an addition to the other successes of the Kingdom in various fields and as a “culmination of the directives of the wise leadership -- represented by the Custodian of the Two Holy Mosques King Salman bin Abdulaziz and His Royal Highness the Crown Prince -- to continue enhancing the Kingdom’s position on the global tourism map, and raising its contribution to the gross domestic product under the Kingdom’s Vision 2030.”

 

He added that facilitating travel visa procedures, planning promotional campaigns in the target countries, and diversifying tourism destinations in the Kingdom were among the factors behind these achievements.

 

Al-Khatib stressed that the ministry will maintain its efforts, in cooperation with all partners from the public and private sectors, in order to move forward in realizing the government’s aspirations to make the Kingdom a global tourism destination.

 

Nayef Al-Rajhi, Vice Chairman of the Board of Directors of the Chamber of Commerce in Riyadh and Chairman of the National Tourism Committee in the Federation of Saudi Chambers, told Asharq Al-Awsat that Saudi tourism was witnessing a quantum leap.

 

He added that the Kingdom’s progress in international tourism indicators reflected positively on the country and stimulated efforts to strengthen and develop the tourism sector to provide a unique experience for all visitors.

 

A bulletin issued by the Saudi Ministry of Investment indicated that spending by international tourists in the Kingdom jumped to 27 billion riyals ($7.2 billion) in the first half of 2022, following an increase in the number of visitors by a total of 46 million tourists.

 

Saudi Arabia has focused on diversifying its economy and developing new tourism activities and destinations, which represented a fundamental pillar of the country’s Vision 2030 which seeks to raise the sector’s contribution to the GDP to 10 percent and to receive 100 million visitors annually by 2030.

 

 

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Israel’s ‘Economic War’ Chokes Occupied West Bank

Palestinians queue to withdraw money from an ATM in the main market in Ramallah city in the Israel-occupied West Bank on June 9, 2024.
Palestinians queue to withdraw money from an ATM in the main market in Ramallah city in the Israel-occupied West Bank on June 9, 2024.
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Israel’s ‘Economic War’ Chokes Occupied West Bank

Palestinians queue to withdraw money from an ATM in the main market in Ramallah city in the Israel-occupied West Bank on June 9, 2024.
Palestinians queue to withdraw money from an ATM in the main market in Ramallah city in the Israel-occupied West Bank on June 9, 2024.

Palestinian teenagers bounced on trampolines and jumped through hoops inside a towering tent on the outskirts of Ramallah, the financial hub of the occupied West Bank.

But the circus students weren't the only ones bending over backwards in the pavilion: the school's director faced financial hurdles to buy the tent from Europe and trampolines from Asia.

"We are suffering with international payments," said Mohamad Rabah, head of the Palestinian Circus School, describing a bureaucratic process that could delay equipment delivery by up to a month.

Banking in the Palestinian territories is challenging, with the Palestinian Authority (PA) under scrutiny for potential terror financing, hindering transactions.

Israel has occupied the West Bank since 1967, with strong economic ties allowing two Israeli lenders to serve as correspondent banks in the Palestinian territory.

But this may change if Israel's far-right Finance Minister Bezalel Smotrich carries out threats to sever a vital banking route next month.

Since Hamas's October 7 attack triggered the Gaza war, Israel has imposed economic curbs on the PA, withholding tax revenues it collects on its behalf.

Smotrich said this week he had redirected $35 million in PA tax revenues to families of "terrorism" victims, a move condemned by the United States.

After three European countries recognized Palestinian statehood in May, Smotrich told Prime Minister Benjamin Netanyahu he would not extend indemnity to banks that transfer the funds from the end of June.

Israel's Bank Hapoalim and Israel Discount Bank need protection, expiring on July 1, to avoid sanctions for dealing with Palestinian lenders.

Israel's central bank and finance ministry declined to comment when contacted by AFP.

A Palestinian fruit vendor arranges his street cart in the main market in Ramallah city in the Israel-occupied West Bank on June 9, 2024. (AFP)

- 'Humanitarian crisis' -

The banking channel used to pay for West Bank imports -- including essential goods like water, fuel and food -- handles $8 billion yearly.

Palestinian businesses receive nearly $1.7 billion annually for exports, according to the Palestine Monetary Authority.

"For us, because our economy is dependent on the Israeli economy, because Israel is controlling the border, the impact will be high," said PMA governor Feras Milhem.

The Palestinian economy is largely governed by the 1994 Paris Protocol, which granted sole control over the territories' borders to Israel, including the right to collect import duties and value-added tax for the PA.

Palestinian livelihoods have also been hurt by bans on laborers crossing into Israel and by a sharp downturn in tourism in the territory, including a quiet Christmas season in Bethlehem.

The United States has urged Israel to improve conditions, warning that severing the banking route would have a dire impact on the West Bank economy.

"I believe it would create a humanitarian crisis in due course if Palestinian banks are cut off from Israeli correspondence," US Treasury Secretary Janet Yellen said last month.

Western governments fear Israel's economic policies could destabilize the West Bank.

"The banking system may collapse and therefore the PA may collapse as well," a European diplomatic source in Jerusalem told AFP on condition of anonymity.

"The PA is in a financial crisis and it could collapse before August."

A Palestinian vendor unloads his stock in front of a shop in the main market in Ramallah city in the Israel-occupied West Bank on June 9, 2024. (AFP)

- Digital currency -

Palestinian businessmen say their bottom lines have been hit since October 7.

Imad Rabah, who owns a plastics company, said his net income had fallen 50 percent in one year.

Musa Shamieh, who owns a womenswear company said the Israeli policies were designed to push Palestinians to leave the West Bank.

"They want us to leave our land and they know it will be hard for us to stay if we can't do business," Shamieh said.

Israel's harsh economic policies could eventually drive Palestinian policymakers to pursue sweeping changes to the monetary system.

"We need to work on a plan B when it comes to the trade relations," said Milhem, governor of the PMA, which uses an image of the former Palestinian pound as its logo.

Yousef Daoud, professor at the West Bank's Birzeit University, said the territory could scrap the shekel as its de facto currency in favor of a digital alternative.

"We can make our e-currency, just collect all the shekels, issue an equivalent amount of Palestinian pounds, one-to-one fixed exchange rate, and have the Palestinians deal with e-currency," he said.

"Somehow, eventually, we'll get rid of the shekel."