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Saudi Arabia Continues to Promote Tourism by Providing Electronic Visas to 6 New Countries

A historical site near the Saudi city of AlUla. (AFP)
A historical site near the Saudi city of AlUla. (AFP)
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Saudi Arabia Continues to Promote Tourism by Providing Electronic Visas to 6 New Countries

A historical site near the Saudi city of AlUla. (AFP)
A historical site near the Saudi city of AlUla. (AFP)

The Saudi Ministry of Tourism announced on Tuesday the availability of electronic visit visas for citizens of six countries, bringing the total number to 63 countries benefiting from this service.

The new countries include, Türkiye, Thailand, Panama, Saint Kitts and Nevis, Seychelles, and Mauritius. Citizens can obtain a visit visa electronically or directly upon arrival at one of the Kingdom’s international ports.

In remarks to Asharq Al-Awsat, tourism experts pointed to the importance of providing electronic visas to the largest number of countries, in order to meet the giant tourism projects that are emerging in the Kingdom, and to receive visitors from all over the world.

Vice Chairman of the Board of Directors of the Riyadh Chamber of Commerce and Chairman of the National Tourism Committee of the Federation of Saudi Chambers Nayef Al-Rajhi said the Kingdom was significantly expanding the granting of electronic visas to citizens of other countries, underlining its endeavor to promote the sector and reach its target to receive 100 million visitors in 2030.

According to Al-Rajhi, digital transformation in public and private agencies contributed to facilitating visitor procedures for tourists.

He added that Saudi Arabia’s tourism openness expands the work of the local private sector and attracts foreign capital to enter and invest in major tourism projects.

General Manager and CEO of Abdul Mohsen Al-Hokair Company Majed Al-Hokair told Asharq Al-Awsat that expanding the scope of electronic visas to include six new countries is a step towards achieving the Kingdom’s aspirations to advance the tourism sector and an opportunity for tourists to discover the country’s rich landmarks.

He added that Saudi Arabia has a target to raise the contribution of the tourism sector to the gross domestic product to exceed 10 percent, and to diversify the economy in line with the goals of Vision 2030.

Al-Hokair noted that the government would move forward to add more beneficiaries of the electronic visa system in order to encourage tourists to discover various sites across the Kingdom.

The new step by the Saudi government is part of efforts aimed at enhancing the country’s openness to the world, and supporting development and economic diversification to achieve the goals of Vision 2030. The goals include raising the tourism sector’s contribution to the gross domestic product from 3 to more than 10 percent and providing one million job opportunities in the sector.

In addition to citizens of the 63 countries, the tourist visa is available to seven other categories: residents of the United States, the United Kingdom, the European Union countries, and holders of American and British visit visas, as well as those who hold Schengen visas, and all residents of the Gulf Cooperation Council countries.

The Red Sea International Company recently announced the opening of its tourism destination to visitors from all over the world, through the Red Sea International Airport, which currently receives flights directly from Riyadh. The service will be expanded to include several other regions.

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Turkish Firms Face Wave of Closures Amid Economic Reckoning 

Leftover textile materials are seen outside a shut-down textile factory at the organized industrial zone in Corum, Türkiye, August 23, 2024. (Reuters)
Leftover textile materials are seen outside a shut-down textile factory at the organized industrial zone in Corum, Türkiye, August 23, 2024. (Reuters)
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Turkish Firms Face Wave of Closures Amid Economic Reckoning 

Leftover textile materials are seen outside a shut-down textile factory at the organized industrial zone in Corum, Türkiye, August 23, 2024. (Reuters)
Leftover textile materials are seen outside a shut-down textile factory at the organized industrial zone in Corum, Türkiye, August 23, 2024. (Reuters)

It is hard for Dogan Duman to see how he can keep his garment factory in central Türkiye running much longer, even after firing a third of his staff to cut costs that have soared for companies nationwide, generating a wave of bankruptcies and closures.

Idle sewing machines are pushed to the side of his factory floor in Corum, where outside "For Sale" signs and padlocked gates dot the small city's once-buzzing industrial zone.

Such sober scenes are spreading across Türkiye as part of the fallout from a more than year-long policy-tightening effort, including a 50% benchmark interest rate, to rein in years of soaring inflation and overheated demand.

Thousands of companies like Duman's - which makes coats and jackets for global fashion brand Zara - are squeezed by inflation that topped 75% earlier this year, an overvalued lira, hikes to electricity and gas prices and dwindling export orders.

"The orders are shrinking daily because we are losing our competitiveness... and I think they will shrink even more," he said of his 27-year-old company that is now down to 60% capacity and 210 employees.

Türkiye is one of the world's top five garment manufacturers and a critical source for Europe's top brands. But despite its advantage of proximity to Europe, its main trade partner, Duman says swelling energy, labor and FX costs have left him trailing rivals in Vietnam and Bangladesh.

"Considering the current lira exchange rate and the expected further rise to minimum wage next year, I think we won't be able to compete," he said. "We will be at a point of shutdown."

These days, Turkish households and business are facing the economic consequences of a cumulative 41.5 percentage points of rate hikes that began in June last year and are now finally beginning to cool inflation, which dipped to 52% last month.

Last year's dramatic policy U-turn, including fiscal steps, aims to leave behind years of soaring prices and currency crashes under President Recep Tayyip Erdogan's formerly unorthodox approach of monetary easing to stoke growth.

But with credit now out of reach for many, and lira depreciation badly lagging monthly price rises, companies, especially apparel and textile exporters, are in a crunch.

Almost 15,000 companies closed down in the first seven months of the year, up 28% from 2023, according to the Union of Chambers and Commodity Exchanges of Türkiye.

Other data suggest bankruptcy stress is brewing.

Monitoring outlet konkordatotakip.com says 982 companies were granted initial court protection from debt in the first eight months of the year, almost double last year's total.

Construction and textile firms have made the largest number of such applications to suspend debt payments to banks and suppliers to continue operations, and also for bankruptcy proceedings.

Such company strains have knock-on effects, slowing or halting payments across the economy and lifting joblessness.

There may be "heavy costs," said Erdal Bahcivan, chairman of Istanbul Chamber of Industry. "While trying to save a company, dozens of (creditor) firms may end up in dire straits."

Some economists say that given the aggressive tools used to slay inflation, rising unemployment and bankruptcies are all but certain.

"This is a serious dilemma for the government," said Seyfettin Gursel, director at Bahcesehir University Center for Economic and Social Research. "It is trying to put the monster it created back into its lair, but doesn't know how to do it".

STREWN GARMENTS

In Corum, 500 kilometers east of Istanbul, some factories have broken windows and one had dozens of colorful rain-drenched garments strewn across its grassy yard.

Bulent Demirci, co-owner of a yarn factory in the city with 50 workers, said he shut it down a couple of months ago due to an "unpredictable economic outlook".

"We had production cuts from time to time in the past. But this time it is all doom and gloom," he said.

Ankara's latest hike to the minimum wage was to 17,002 liras ($500) in January, which is up 100% from a year earlier and 500% from the end of 2021, when a historic lira crash rocked Türkiye.

Gas and electricity prices have risen about sevenfold and threefold respectively since 2021 for small to mid-scale manufacturers.

Türkiye’s overall production costs are now almost 40% higher than in competing Asian countries in dollar terms, according to interviews with exporters, who also blame barriers to financing and dwindling working capital.

Exporters have lobbied for more currency depreciation given that, year-to-date, inflation is 32% while the lira has fallen only 13% to the dollar. Authorities however have urged lira holdings, helped along by high deposit rates.

Istanbul-traded Mega Polietilen and garment manufacturer 3F Tekstil are among those that applied for court protection from debt payments.

An executive at 3F who requested anonymity said the move helped as it struggled to survive with a total 600 workers, and to continue supplying fashion brands such as Mango and H&M.

"But our suppliers and those who have receivables will suffer more in this process," amounting to roughly 10,000 workers at outsourced manufacturers across the country, the executive said.

"When interest rates reached 60-70% the companies could not bear it. They cannot manage their debt," he said. "Businesses have paid for high inflation in Türkiye."