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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)
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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.

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Europe’s Auto Industry Might Face €15 Billion in Fines Over Emissions

A worker walks past parked Renault cars at its stockyard on the outskirts of the western Indian city of Ahmedabad June 11, 2013. (Reuters)
A worker walks past parked Renault cars at its stockyard on the outskirts of the western Indian city of Ahmedabad June 11, 2013. (Reuters)
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Europe’s Auto Industry Might Face €15 Billion in Fines Over Emissions

A worker walks past parked Renault cars at its stockyard on the outskirts of the western Indian city of Ahmedabad June 11, 2013. (Reuters)
A worker walks past parked Renault cars at its stockyard on the outskirts of the western Indian city of Ahmedabad June 11, 2013. (Reuters)

Renault chief Luca de Meo warned Saturday that European carmakers could face fines of 15 billion euros if they fail to respect EU emissions rules, calling for "some flexibility" as electric car sales slow on the continent.

He told France Inter radio: "In order to meet CO2 emission standards calculated on average for all cars sold, manufacturers will have to reduce their production by more than 2.5 million vehicles to avoid being penalized."

De Meo, who is also president of the European Automobile Manufacturers Association (ACEA), said an EV car can compensate for four thermal cars.

"We are now preparing for 2025 because we are taking orders for the cars we're going to deliver. According to our calculations, if EV production remains at today's level, the European industry may have to pay 15 billion euros in fines or give up production of more than 2.5 million units," he said.

"We need to be given a little flexibility. Setting deadlines and fines without being able to make that more flexible is very, very dangerous," he warned.

In August, battery-electric cars accounted for 12.5% of the EU car market, with a 10.8% drop in sales year-on-year.

The Renault chief underlined the importance of the EV market for European industrial battery manufacturing projects. "If electric cars do not sell, these projects will face difficulties," he added.

To explain the weak market for electric vehicles, de Meo cited the high prices of cars, the very slow installation of charging stations and "uncertainty" about the subsidies for the purchase of electric vehicles.

He said the German government ended its electric car subsidy program last December, leading to a drastic drop in sales.

Commenting on those subsidies, he stressed "we need stability, visibility" and "a certain consistency" in our policies.

The European automobile industry is under intense pressure from Chinese competition. Volkswagen warned this week that it would consider closing factories in Germany for the first time in its 87-year history.

This should not happen to Renault, which has already made savings, de Meo assured. "A few years ago, we had to make a very hard decision by reducing production capacity by more than one million vehicles," he explained.