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Saudi Tourism Revenues Jump 70% in 2021

The Al-Rudaf Park in Taif, western Saudi Arabia. (Asharq Al-Awsat)
The Al-Rudaf Park in Taif, western Saudi Arabia. (Asharq Al-Awsat)
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Saudi Tourism Revenues Jump 70% in 2021

The Al-Rudaf Park in Taif, western Saudi Arabia. (Asharq Al-Awsat)
The Al-Rudaf Park in Taif, western Saudi Arabia. (Asharq Al-Awsat)

Operational revenues of tourism-related activities in Saudi Arabia amounted to $56.8 million in 2021, a 70.8 percent increase compared with 2020, revealed the General Authority for Statistics (GAStat).

The Authority said the increase included all distinctive tourism activities. The revenues from accommodation for visitors accounted for 33.2 percent and food and drink made up 29.9 percent of the total figure.

Operational expenses

Total operating expenses of tourism-related activities reached $29.9 million, an increase of 92.2 percent from 2020.

Operational expenses related to accommodation represented 31.6 percent and food and beverage related operations accounted for 29.7 percent of total operational expenses.

Administrative data from the Ministry of Tourism showed that the annual occupancy rate in hotel rooms reached 42.1 percent in 2021.

During December, the Kingdom witnessed the highest monthly occupancy rate at 53.3 percent. The annual occupancy rate of furnished housing units stood at 49.3 percent in 2021. The highest monthly occupancy rate was 55 percent.

Number of employees

The General Authority revealed that the number of workers in tourism-related activities reached 767,819 during 2021, including 516,382 in the food and beverage sector and 101,861 in accommodation sector.

The sectors employed 81 percent of the workforce in tourism-related activities. Saudi workers accounted for 26.8 percent of the workforce, with males making up 58.1 percent of the total and females 41.9 percent.

During the first quarter of 2023, the Kingdom received about 7.8 million international tourists, the highest historical quarterly performance, and marking a growth of 64 percent compared to the same period in 2019.

Saudi Arabia occupied second place on the list of the most developed countries worldwide, according to the latest data from the UN World Tourism Organization (UNWTO).

The Kingdom advanced 16 places in the International Tourism Revenue Index, reaching 11th place in 2022, compared to 27th place in 2019, according to the World Tourism Barometer report issued by the UNWTO in May 2023.

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BP Nears Deals for Oil Fields, Curbs on Gas Flaring in Iraq

British Prime Minster Keir Starmer (L) welcomes Prime Minister of Iraq Mohammed Shia al-Sudani to 10 Downing Street in London, Britain, 14 January 2025. (EPA)
British Prime Minster Keir Starmer (L) welcomes Prime Minister of Iraq Mohammed Shia al-Sudani to 10 Downing Street in London, Britain, 14 January 2025. (EPA)
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BP Nears Deals for Oil Fields, Curbs on Gas Flaring in Iraq

British Prime Minster Keir Starmer (L) welcomes Prime Minister of Iraq Mohammed Shia al-Sudani to 10 Downing Street in London, Britain, 14 January 2025. (EPA)
British Prime Minster Keir Starmer (L) welcomes Prime Minister of Iraq Mohammed Shia al-Sudani to 10 Downing Street in London, Britain, 14 January 2025. (EPA)

Iraq and British oil giant BP are set to finalize a deal by early February to develop four oil fields in Kirkuk and curb gas flaring, Iraqi authorities announced Wednesday.

The mega-project in northern Iraq will include plans to recover flared gas to boost the country's electricity production, they said.

Gas flaring refers to the polluting practice of burning off excess gas during oil drilling. It is cheaper than capturing the associated gas.

The Iraqi government and BP signed a new memorandum of understanding in London late Tuesday, as Prime Minister Mohammed Shia al-Sudani and other senior ministers visit Britain to seal various trade and investment deals.

"The objective is to enhance production and achieve optimal targeted rates of oil and gas output," Sudani's office said in a statement.

Iraq's Oil Minister Hayan Abdel Ghani told AFP after the new accord was signed that the project would increase the four oil fields' production to up to 500,000 barrels per day from about 350,000 bpd.

"The agreement commits both parties to sign a contract in the first week of February," he said.

Ghani noted the project will also target gas flaring.

Iraq has the third highest global rate of gas flaring, after Russia and Iran, having flared about 18 billion cubic meters of gas in 2023, according to the World Bank.

The Iraqi government has made eliminating the practice one of its priorities, with plans to curb 80 percent of flared gas by 2026 and to eliminate releases by 2028.

"It's not just a question of investing and increasing oil production... but also gas exploitation. We can no longer tolerate gas flaring, whatever the quantity," Ghani added.

"We need this gas, which Iraq currently imports from neighboring Iran. The government is making serious efforts to put an end to these imports."

Iraq is ultra-dependent on Iranian gas, which covers almost a third of Iraq's energy needs.

However, Teheran regularly cuts off its supply, exacerbating the power shortages that punctuate the daily lives of 45 million Iraqis.

BP is one of the biggest foreign players in Iraq's oil sector, with a history of producing oil in the country dating back to the 1920s when it was still under British mandate.

According to the World Bank, Iraq has 145 billion barrels of proven oil reserves -- among the largest in the world -- amounting to 96 years' worth of production at the current rate.