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.



Trump to Impose Sharp Tariff on Countries Buying Venezuelan Oil

 President Donald Trump delivers remarks in the Roosevelt Room at the White House in Washington, Monday, March 24, 2025. (AP)
President Donald Trump delivers remarks in the Roosevelt Room at the White House in Washington, Monday, March 24, 2025. (AP)
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Trump to Impose Sharp Tariff on Countries Buying Venezuelan Oil

 President Donald Trump delivers remarks in the Roosevelt Room at the White House in Washington, Monday, March 24, 2025. (AP)
President Donald Trump delivers remarks in the Roosevelt Room at the White House in Washington, Monday, March 24, 2025. (AP)

US President Donald Trump announced Monday steep tariffs on imports from countries buying Venezuelan oil and gas, a punitive measure that could hit China and India, among others, and sow fresh global trade uncertainty.

Since returning to the White House in January, Trump has unleashed tariffs on US allies and foes alike, attempting to strong-arm both economic and diplomatic policy.

The latest across-the-board 25 percent levies targeting direct and indirect buyers of Venezuelan oil can take effect as soon as April 2, according to an order signed Monday by Trump.

The US secretary of state, in consultation with other government agencies, is authorized to determine if the new levy will be imposed.

These could hit China and India, with experts noting that Venezuela exports oil to both those countries, and to the United States and Spain.

Trump told reporters Monday that the 25 percent tariff would be on top of existing rates.

Caracas called the measure a "new aggression" by Washington.

"They can sanction and impose tariffs on whatever they want, what they cannot sanction is the love and patriotism of the Venezuelan people," President Nicolas Maduro said during an event broadcast on radio and television.

In February, Venezuela exported about 500,000 barrels of oil per day to China and 240,000 barrels to the United States, experts told AFP.

- 'Liberation day' -

Trump has dubbed April 2 "Liberation Day" for the world's biggest economy, already promising reciprocal tariffs tailored to each trading partner in an effort to remedy practices that Washington deems unfair.

He earlier signaled sector-specific duties coming around the same day -- but the White House said Monday it might take a narrower approach.

In his Monday announcement on Truth Social involving Venezuela, the president cited "numerous reasons" for what he called a "secondary tariff."

He accused Venezuela of "purposefully and deceitfully" sending "undercover, tens of thousands of high level, and other, criminals" to the United States.

He added in his post that "Venezuela has been very hostile to the United States and the Freedoms which we espouse."

According to Trump's order, the 25 percent tariff expires a year after the last date that a country has imported Venezuelan oil -- or sooner if Washington decides so.

Trump's announcement comes as the deportation pipeline between the United States and Venezuela was suspended last month when he claimed Caracas had not lived up to a deal to quickly receive deported migrants.

Venezuela subsequently said it would no longer accept the flights.

But Caracas said Saturday it had reached agreement with Washington to resume repatriations after which nearly 200 Venezuelan citizens were deported from the United States via Honduras.

Separately Monday, the Trump administration extended US oil giant Chevron's deadline to halt its operations in Venezuela through May 27.

The company had been operating in Venezuela under a sanctions waiver.

- Tariff 'breaks'? -

Trump's latest move adds to tariffs he has vowed would start on or around April 2.

Besides reciprocal tariffs, he has promised sweeping sector-specific duties hitting imported automobiles, pharmaceuticals and semiconductors.

As things stand, however, his plans for the day might become more targeted.

Sector-specific tariffs "may or may not happen April 2," a White House official told AFP, adding that the situation is "still fluid."

The official reaffirmed that reciprocal tariffs would take place.

But Trump told reporters Monday he might "give a lot of countries breaks" eventually, without elaborating.

He separately added that he would announce car tariffs "very shortly" and those on pharmaceuticals later down the line.

US partners are furthering talks with Washington as deadlines loom, with EU trade chief Maros Sefcovic heading to the country Tuesday to meet his counterparts -- Commerce Secretary Howard Lutnick and trade envoy Jamieson Greer.

Hopes of a narrower tariff rollout gave financial markets a boost.

Treasury Secretary Scott Bessent told Fox Business' Maria Bartiromo last week that Washington would go to trading partners with an indication of where tariff levels and non-tariff barriers are.

If countries stopped their practices, Bessent added, they could potentially avoid levies.

In the same interview, Bessent noted that levies would be focused on about 15 percent of countries who have trade imbalances with the United States, dubbing these a "dirty 15."