IMF Report: Saudi Arabia Surpasses Vision 2030 Tourism Target

Fireworks light up the sky following the F1 Saudi Arabian Grand Prix in Jeddah in December 2021. (SPA file)
Fireworks light up the sky following the F1 Saudi Arabian Grand Prix in Jeddah in December 2021. (SPA file)
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IMF Report: Saudi Arabia Surpasses Vision 2030 Tourism Target

Fireworks light up the sky following the F1 Saudi Arabian Grand Prix in Jeddah in December 2021. (SPA file)
Fireworks light up the sky following the F1 Saudi Arabian Grand Prix in Jeddah in December 2021. (SPA file)

The International Monetary Fund (IMF) has highlighted Saudi Arabia’s tourism sector as a major contributor to the country’s economic diversification in its 2024 Article IV Consultation report.

The report acknowledged Saudi Arabia’s success in exceeding the Vision 2030 target of attracting 100 million visitors annually by 2023, seven years ahead of schedule.

Tourism revenues reached $36 billion in 2023, with net tourism income increasing by 38%. The sector’s direct and indirect contribution to GDP reached 11.5% in 2023, with expectations to grow to 16% by 2034.

Central to this growth has been a combination of strong domestic demand and increased international arrivals.

Non-religious tourism has surged, with increased leisure travel and visits to friends and relatives driven further by major international events such as Formula One, the 2027 Asian Cup, and the 2030 World Expo.

The IMF report underscored the role of tourism in shifting Saudi Arabia’s service balance to a surplus. This means that the Kingdom is now earning more from international visitors than it is spending on outbound tourism. By 2022, this shift resulted in a positive balance, and 2023 saw further gains through increased revenue from transportation and service exports.

The report also noted that while outbound tourism spending by Saudi nationals declined, and expatriates in the Kingdom significantly increased their leisure spending post-COVID.

Crucial to this transformation are the diverse linkages Saudi Arabia’s tourism sector has created across industries, such as food, beverage, travel, cultural industries, and accommodation. These connections are helping to reduce the Kingdom’s reliance on oil-intensive sectors.

Major giga projects like Red Sea Global and Diriyah Gate are pivotal in this shift, as they focus on luxury tourism, culture preservation, and infrastructure improvements.

Vision 2030 remains the Kingdom’s comprehensive economic reform plan, with tourism at its core. The IMF’s recognition of Saudi Arabia’s progress reflects the vast potential of its tourism sector and its capacity to drive sustainable economic growth in the years to come.



Samer Al-Kharashi to Asharq Al-Awsat: Saudi Arabia Making Progress in Green Investments

Samer Al-Kharashi, Director of the United Nations World Tourism Organization (UNWTO) Regional Office for the Middle East.
Samer Al-Kharashi, Director of the United Nations World Tourism Organization (UNWTO) Regional Office for the Middle East.
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Samer Al-Kharashi to Asharq Al-Awsat: Saudi Arabia Making Progress in Green Investments

Samer Al-Kharashi, Director of the United Nations World Tourism Organization (UNWTO) Regional Office for the Middle East.
Samer Al-Kharashi, Director of the United Nations World Tourism Organization (UNWTO) Regional Office for the Middle East.

Samer Al-Kharashi, Director of the United Nations World Tourism Organization (UNWTO) Regional Office for the Middle East, highlighted Saudi Arabia’s role in advancing the tourism ecosystem in the region and promoting sustainable development in the sector.

In an interview with Asharq Al-Awsat, he stressed that the Kingdom’s hosting of the regional office reflects its commitment to making tourism a key driver of economic growth in the Middle East.

Al-Kharashi noted that the Arab Gulf and the Middle East saw the largest relative increase in international tourist arrivals, surpassing pre-pandemic levels by 36% during the first quarter of 2024. This includes a 4% increase compared to the same period in 2023, making the region the global leader in tourism recovery.

In the interview, the official emphasized that Saudi Arabia’s mega-projects are pivotal to Vision 2030, which aims to diversify the economy and position the Kingdom as a premier global tourist destination. He added that these projects align closely with the UN’s Sustainable Development Goals 2030, focusing on sustainable tourism, economic growth, and preserving cultural heritage.

Al-Kharashi acknowledged Saudi Arabia’s substantial progress in sustainable tourism development, citing the UNWTO’s report on tourism and the Sustainable Development Goals. He commended Riyadh’s efforts in promoting viable initiatives that benefit both people and the environment.

Since its launch in Riyadh in May 2021, the UNWTO’s Middle East office has become a key contributor to the region’s tourism growth, he noted. Its primary focus has been on capacity building, enhancing competitiveness, and fostering public-private partnerships to support tourism-driven regional development. The office also works to integrate tourism into public policy and promote rural destinations, he underlined.

On a technical level, the office supports advanced capacity-building initiatives, skill development, and the promotion of sustainable tourism practices, Al-Kharashi said, adding that it aims to create a more robust and competitive tourism sector in the Middle East, ensuring long-term, sustainable growth.

Asked about the tourism sector’s performance in the Middle East in terms of numbers, the official replied that the Middle East has made significant progress in tourism development.

According to the UNWTO Tourism Barometer, the region recorded a 36% increase in international arrivals compared to pre-pandemic levels during the first quarter of 2024, he stated. This follows a strong performance in 2023, when the region was the first globally to recover fully, with a 22% increase in tourist arrivals compared to pre-pandemic levels.

Al-Kharashi emphasized that tourism is a vital part of the global labor market, providing jobs for 1 in 10 people worldwide.

“As an international organization with 160 member countries, the UNWTO is dedicated to promoting sustainable development in the tourism sector. Our strategic priorities include fostering high-quality employment, nurturing talent, driving technological innovation, and advancing sustainability and climate action,” he told Asharq Al-Awsat.

Al-Kharashi further explained that the UNWTO promotes sustainable tourism and green investments in the region through a variety of initiatives.

The Organization focuses on three key investment areas: human capital development through education and skills training, environmental sustainability through green infrastructure investments, and economic growth through innovation and entrepreneurship, he stressed.

These initiatives align with Saudi Arabia’s Green Saudi and Green Middle East programs, he remarked.

Additionally, the UNWTO has launched a Sustainable Development Goals (SDGs) Tourism Platform, which offers resources and expert knowledge on sustainable tourism practices, Al-Kharashi said, adding that the Organization is also committed to promoting green investments through events such as World Tourism Day 2023, which showcased opportunities for sustainable tourism development.

Discussing the current state of green investments in the Middle East’s tourism sector, particularly in Saudi Arabia, Al-Kharashi stressed that green investments are increasingly central to tourism development in the region. The UNWTO has developed investment guidelines that encourage sustainable tourism investments, including in Jordan, where foreign direct investment rose by 83% in 2022, reaching $1.1 billion.

Furthermore, he added that Saudi Arabia has made significant strides in sustainable tourism, citing the UNWTO’s report, which highlights the Kingdom’s efforts under SDG 15 (Life on Land), such as reforestation projects to combat desertification and drought.

Al-Kharashi went on to say that the UNWTO’s regional office in Saudi Arabia plays a crucial role in shaping the future of tourism in the Middle East.

“By fostering close collaboration between public and private sectors, the office is helping to build a dynamic and competitive tourism environment. With over 13 affiliated members from Saudi Arabia, including representatives from hospitality, education, and travel, the office is boosting tourism capacity and development across the region,” he stated.

He continued that the office also supports initiatives such as the Tourism Tech Mentorship Program in Al-Ula, aimed at cultivating a new generation of tourism leaders. This strategy ensures that the region remains competitive, while also contributing to long-term economic and social development.

According to Al-Kharashi, Saudi Arabia’s decision to host the UNWTO’s first regional office demonstrates the Kingdom’s commitment to diversifying its economy and positioning the Middle East as a leading global tourism destination. The office supports the 13 member countries of the region and strengthens collaboration with 45 affiliated members from the region.

“By promoting tourism education, skill development, and rural tourism, the regional office plays a vital role in advancing the tourism sector across the Middle East,” he remarked.

Asked about the UNWTO’s view of Saudi Arabia’s recent tourism developments, he UN official said that the Organization regards Saudi Arabia’s tourism development as highly promising, especially with the Kingdom’s ambitious goal of attracting 150 million visitors annually by 2030.

To meet this target, it will be essential to bolster the sector’s capabilities through education, training, and skill development, he stated, adding that the recent agreement between the UNWTO and Saudi Arabia includes the establishment of a “Jobs Factory” and a “Tourism Labor Market Observatory,” both designed to boost capacity and assess workforce skills.

Additionally, the UNWTO has recognized two Saudi destinations - Rijal Alma and AlUla - in its “Best Tourism Villages” competition, underscoring the Kingdom’s commitment to preserving cultural and natural heritage, he told Asharq Al-Awsat.

Al-Kharashi noted that Saudi Arabia’s mega-projects, such as NEOM, the Red Sea Project, Qiddiya, and AlUla, represent a major transformation for both the region and the global tourism landscape. He explained that these projects, part of Vision 2030, are designed to diversify the Kingdom’s economy and establish it as a world-class tourist destination.

With successful bids for the 2034 FIFA World Cup and Expo 2030, alongside ambitious projects that include futuristic cities, entertainment hubs, and heritage sites, Saudi Arabia is on track to become a major player in the global tourism industry, the official said. These projects will set new benchmarks for sustainable and innovative tourism practices, enhancing the Middle East’s reputation as a leading destination for visitors worldwide.