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UN Report Urges Entrepreneurs to Leverage AI in Tourism

Shibara Island, one of the Red Sea projects in Saudi Arabia (Asharq Al-Awsat)
Shibara Island, one of the Red Sea projects in Saudi Arabia (Asharq Al-Awsat)
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UN Report Urges Entrepreneurs to Leverage AI in Tourism

Shibara Island, one of the Red Sea projects in Saudi Arabia (Asharq Al-Awsat)
Shibara Island, one of the Red Sea projects in Saudi Arabia (Asharq Al-Awsat)

Saudi Arabia is accelerating its efforts to integrate artificial intelligence (AI) into its tourism sector, aiming to enhance its global leadership in technological innovation and modernize the industry. As the government invests in AI-driven solutions to transform tourism, private sector companies are urged to keep pace with these advancements. Experts say AI will not only improve efficiency but also drive innovation and help the sector navigate future challenges in an increasingly competitive global market.

The United Nations World Tourism Organization (UNWTO) has emphasized AI’s significance in shaping the future of tourism.

According to UNWTO estimates, AI is expected to contribute between $15.7 trillion and $19.9 trillion to the global economy by 2030. Generative AI alone could add between $2.6 trillion and $4.4 trillion annually. Recognizing these projections, UNWTO has intensified its focus on technological solutions, including AI, by launching initiatives such as the AI Challenge for Startups, which targets emerging and established companies demonstrating significant potential in tourism and technology.

Saudi Arabia’s AI-Driven Tourism Vision

Saudi Arabia has taken significant steps to integrate AI into its tourism industry, aligning with Vision 2030 and its commitment to transforming the sector. The government has invested heavily in technology and data analytics to support evidence-based decision-making for future developments. It has also formed partnerships with leading global AI firms to enhance capabilities and integrate advanced solutions.

The Kingdom has hosted conferences and events highlighting AI’s impact on tourism, including the “AI in Tourism” conference during the Global AI Summit in Riyadh. Additionally, it has established ethical AI guidelines to ensure sustainable sector growth.

Massive investments in smart city development and digital infrastructure further demonstrate Saudi Arabia’s commitment to AI-driven tourism. Projects such as NEOM and Qiddiya are prime examples of this strategy, integrating cutting-edge technologies to enhance tourism offerings.

Saudi entrepreneurs and tourism specialists assert that local startups are well-prepared to accelerate AI adoption, ensuring a sustainable and technologically advanced tourism sector. AI is expected to serve as a transformational force in the industry, particularly as the Kingdom undergoes rapid progress and records high growth rates in global tourism indicators.

Challenges

Despite enthusiasm and readiness for AI integration, several challenges remain. Promoting digital literacy across the tourism sector, encouraging innovation to keep up with global advancements, and ensuring seamless AI integration across various industry segments are key hurdles.

Naif Abdullah Al-Rajhi, CEO of Fursan Travel and Tourism, stressed the importance of innovation in aligning with Saudi Arabia’s tourism ambitions. He noted that modern technologies could help increase the annual number of tourists to 150 million by 2030. Speaking to Asharq Al-Awsat, he explained that developing and implementing AI technologies across operations, management, and services would significantly enhance the sector’s efficiency and contribute to achieving Vision 2030 goals. He also highlighted Saudi Arabia’s investment in large-scale tourism projects, reinforcing the country’s long-term aspirations.

Al-Rajhi emphasized that integrating AI-driven data applications for evaluating tourism activities and projects is essential, as the industry is becoming an increasingly important economic driver for the Kingdom.

Risk Mitigation

Nasser Al-Ghailan, founder and CEO of Amala Tourism Investment, pointed out that Saudi businesses are aware of the country’s rapid tourism expansion and must accelerate AI adoption through risk-mitigation strategies that ensure sustainable growth. He underlined the need for tourism companies to adapt quickly to AI-driven transformations, allowing them to deliver highly accurate travel recommendations, provide comprehensive destination insights, and conduct in-depth data analysis for improved decision-making.

Supporting AI-powered solutions enhances efficiency and improves the traveler experience. Al-Ghailan stressed that AI is essential for meeting evolving customer expectations, from optimizing services to enhancing visitor experiences, solidifying tourism’s role as a key driver of economic growth.

Business Efficiency

General Manager of Al-Sarh Travel and Tourism Muhaibib Al-Muhaibib explained that AI is fueling innovation in the tourism industry and driving sustainability efforts. He noted that the rapid development of Saudi Arabia’s tourism sector has paved the way for AI-driven business efficiencies and improved guest experiences.

He further stated that Saudi Arabia’s investment in technology and data analytics has played a crucial role in enhancing commercial operations and creating seamless experiences for tourists. AI’s influence extends beyond basic service improvements, impacting key sectors such as transportation, hospitality, and aviation.

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Business

Riyadh Air Launches ‘Employment First’ Overseas Aviation Training Scholarship Program

Riyadh Air Launches ‘Employment First’ Overseas Aviation Training Scholarship Program
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Riyadh Air Launches ‘Employment First’ Overseas Aviation Training Scholarship Program

Riyadh Air Launches ‘Employment First’ Overseas Aviation Training Scholarship Program

Riyadh Air has announced its ‘Employment-First’ Overseas Scholarship Program, which aims to launch several scholarship tracks, starting with two specialized paths for engineers in Australia, followed by a pilot training program in the United States.

The initiative falls under ‘Promising Path’, one of the tracks within the Custodian of the Two Holy Mosques Scholarship Program, in collaboration with the Ministry of Education, the Ministry of Transport and Logistic Services, and the General Authority of Civil Aviation (GACA).

This strategic step aims to build national competencies and train a new generation of specialists in the aviation sector, SPA reported.

According to a recent press release from Riyadh Air, the program will introduce several global training pathways, with the initial phase focusing on sending scholarship students to Australia to study towards Bachelor’s degrees in Aircraft Maintenance Engineering, covering both Mechanical Engineering and Avionics (Electronics). Next month, Riyadh Air will launch a Commercial Aviation training program in the United States.

In line with Riyadh Air’s commitment to supporting students' career progression, participants will be employed before commencing their scholarships. This ensures that their years of experience are registered with the General Organization for Social Insurance, enhancing their professional readiness from day one.

The program's launch is part of Riyadh Air’s continuous efforts to empower national talent and provide the Kingdom’s young and vibrant workforce with essential skills and knowledge, representing an even greater long-term investment in the future of the Kingdom's aviation industry.

Vice President of Talent Acquisition and Business Partners at Riyadh Air Nahar Aljahani stated: "The 'Employment-First' Scholarship Program is a part of our commitment to developing national human capital and enabling Saudi youth - both men and women - to access world-class education.

Its impact will reflect positively on the development of the aviation sector in the Kingdom, contributing to the company's goal of creating over 200,000 direct and indirect jobs."

With these programs, Riyadh Air continues to play a part in building a promising future for Saudi citizens and enhancing the competitiveness of our graduates in the global aviation industry.

Business

Japan PM Reassures Markets with Fiscal Discipline in Next Year’s Budget

Japan's Prime Minister Sanae Takaichi delivers a speech at the 14th Council Meeting of the Japan Business Federation, or Keidanren, in Tokyo on December 25, 2025. (AFP)
Japan's Prime Minister Sanae Takaichi delivers a speech at the 14th Council Meeting of the Japan Business Federation, or Keidanren, in Tokyo on December 25, 2025. (AFP)
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Japan PM Reassures Markets with Fiscal Discipline in Next Year’s Budget

Japan's Prime Minister Sanae Takaichi delivers a speech at the 14th Council Meeting of the Japan Business Federation, or Keidanren, in Tokyo on December 25, 2025. (AFP)
Japan's Prime Minister Sanae Takaichi delivers a speech at the 14th Council Meeting of the Japan Business Federation, or Keidanren, in Tokyo on December 25, 2025. (AFP)

Japanese Prime Minister Sanae Takaichi sought on Thursday to ease market concerns over her expansionary fiscal policy, saying the government's draft budget maintains discipline by limiting reliance on debt.

There has been growing investor unease about fiscal expansion under Takaichi's administration, which has driven super-long government bond yields to record highs and weighed on the yen.

The budget for the year starting in April, to be finalized on Friday and submitted to parliament early in 2026, ‌will total 122.3 trillion ‌yen ($785.4 billion), Takaichi told ruling coalition executives.

The huge ‌spending ⁠will come ‌on top of a 21.3 trillion-yen stimulus package, compiled in November and funded by a supplementary budget for the current fiscal year, that focused on cushioning the blow to households from rising living costs.

Despite the record size, new government bond issuance for the next fiscal year will be capped at 29.6 trillion yen, staying below 30 trillion yen for a second straight year, ⁠she said.

The reliance on debt will fall to 24.2% from 24.9% in the initial fiscal 2025 ‌budget, which dipped below 30% for the ‍first time in 27 years, she said. ‍The 24.2% debt dependence ratio would be the lowest since 1998.

"We ‍believe this draft budget strikes a balance between fiscal discipline and achieving a strong economy while ensuring fiscal sustainability," Takaichi said.

In a separate speech at Japanese business lobby Keidanren, Takaichi said that her "responsible, proactive" fiscal policy means strategic spending with a long-term perspective.

"It does not mean expanding expenditures indiscriminately based solely on scale," she said.

In a report to clients, Yusuke Matsuo, ⁠Mizuho Securities' senior market economist, said Takaichi would still need to promote proactive fiscal spending to avoid alienating her political base. He added that financial markets could be reassured if the government sticks to a less aggressive stance on spending.

Signaling a shift in the government's reflationary policy push, private-sector members of a government panel on Thursday called on the government to clearly show the public how the debt-to-gross domestic product ratio can be steadily reduced under Takaichi's government.

The four private-sector members include former Bank of Japan Deputy Governor Masazumi Wakatabe and economist Toshihiro Nagahama - known as reflationist aides of Takaichi.

Their proposals were discussed at ‌the Council on Economic and Fiscal Policy (CEFP), which oversees Japan's fiscal blueprint and long-term economic policies.

Business

Asian Shares are Mixed after US Stocks Drift to More Records

Currency dealers monitor exchange rates as a screen (R) shows South Korea's benchmark stock index in a foreign exchange dealing room at the Hana Bank headquarters in Seoul on November 5, 2025. (Photo by Jung Yeon-je / AFP)
Currency dealers monitor exchange rates as a screen (R) shows South Korea's benchmark stock index in a foreign exchange dealing room at the Hana Bank headquarters in Seoul on November 5, 2025. (Photo by Jung Yeon-je / AFP)
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Asian Shares are Mixed after US Stocks Drift to More Records

Currency dealers monitor exchange rates as a screen (R) shows South Korea's benchmark stock index in a foreign exchange dealing room at the Hana Bank headquarters in Seoul on November 5, 2025. (Photo by Jung Yeon-je / AFP)
Currency dealers monitor exchange rates as a screen (R) shows South Korea's benchmark stock index in a foreign exchange dealing room at the Hana Bank headquarters in Seoul on November 5, 2025. (Photo by Jung Yeon-je / AFP)

Asian shares were mixed Thursday in thin holiday trading, with most markets in the region and elsewhere closed for Christmas.

In Tokyo, the Nikkei 225 edged 0.1% higher to 50,407.79. It has gained nearly 30% this year.

The dollar slipped to 155.85 Japanese yen from 155.94 yen. The euro climbed to $1.1786 from $1.1780.

Markets in mainland China advanced, with the Shanghai Composite index up 0.5% at 3,959.62. Hong Kong's exchange was closed, The Associated Press said.

Investors were encouraged by a statement by the People’s Bank of China, China’s central bank, promising to ensure adequate money supply to support financing, economic growth and inflation targets. Earlier in the week, the PBOC had opted to keep its key short-term lending rates unchanged.

Shares fell in Thailand and Indonesia.

On Wednesday, the S&P 500 index rose 0.3% to 6,932.05 and the Dow Jones Industrial Average added 0.6% to close at 48,731.16. The Nasdaq composite added 0.2% to 23,613.31

Trading was extremely light as markets closed early for Christmas Eve and will be closed for Christmas on Thursday. US markets will reopen for a full day of trading on Friday, though volumes will likely remain light this week with most investors having closed out their positions for the year.

The S&P 500 is up more than 17% this year, as investors have embraced the deregulatory policies of the Trump administration and been optimistic about the future of artificial intelligence in helping boost profits for not only technology companies but also for Corporate America.

Much of the focus for investors for the next few weeks will be on where the US economy is heading and where the Federal Reserve will move interest rates. Investors are betting the Fed will hold steady on interest rates at its January meeting.

The US economy grew at a surprisingly strong 4.3% annual rate in the third quarter, the most rapid expansion in two years, driven by consumers who continue to spend despite strong inflation. There have also been recent reports showing shaky confidence among consumers worried about high prices. The labor market has been slowing and retail sales have weakened.

The number of Americans applying for unemployment benefits fell last week and remain at historically healthy levels despite some signs that the labor market is weakening.

US applications for jobless claims for the week ending Dec. 20 fell by 10,000 to 214,000 from the previous week’s 224,000, the Labor Department reported Wednesday. That’s below the 232,000 new applications forecast of analysts surveyed by the data firm FactSet.

Dynavax Technologies soared 38.2% after Sanofi said it was acquiring the California-based vaccine maker in a deal worth $2.2 billion. The French drugmaker will add Dynavax’s hepatitis B vaccines to its portfolio, as well as a shingles vaccine that is still in development.

Novo Nordisk's shares rose 1.8% after the weight-loss drug company got approval from US regulators for a pill version of its blockbuster drug Wegovy. However, Novo Nordisk shares are still down almost 40% this year as the company has faced increased competition for weight-loss medications, particularly from Eli Lilly. Shares of Eli Lilly are up 40% this year.

US crude oil closed at $58.35 a barrel and Brent crude finished at $61.80 a barrel.