Saudi G20 Presidency Draws up Map for Recovery of Global Tourism

The G20 tourism ministers hold a virtual meeting amid the pandemic.
The G20 tourism ministers hold a virtual meeting amid the pandemic.
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Saudi G20 Presidency Draws up Map for Recovery of Global Tourism

The G20 tourism ministers hold a virtual meeting amid the pandemic.
The G20 tourism ministers hold a virtual meeting amid the pandemic.

Saudi Arabia hosted last week the G20 Leaders Summit as tourism throughout the world is enduring its worst ever crisis due to the novel coronavirus pandemic.

The outbreak has led to global economic recession, crippled transportation and lockdowns have struck at the very core of tourism.

Realizing the danger, the leaders of the G20 countries sought to revive the sector, underscoring its economic importance and employment of hundreds of millions of people throughout the world. Estimates at the beginning of the pandemic showed that 75 million jobs in the travel and tourism sectors were at risk.

Given that tourism and travel make up nearly 10.3 percent of the world’s GDP, Saudi Arabia, as G20 president, sought since the beginning of the pandemic to support efforts to revive these sectors. It exerted efforts to push forward economic revival as the outbreak began to weaken.

The G20 Leaders' Declaration addressed the tourism and travel crisis, with members expressing their commitment “to ensuring that global transportation routes and supply chains remain open, safe and secure, and that any restrictive measures related to COVID-19, including for air and sea crews, are targeted, proportionate, transparent, temporary and in accordance with obligations under international agreements.”

“We will continue to explore concrete ways to facilitate the movement of people in a way that does not impede our efforts to protect public health,” they added.

“We will continue our efforts in collaboration with stakeholders, including the private sector, to facilitate the travel and tourism sector's recovery from the pandemic. We welcome the Tourism Community Initiative as a catalyst of sector recovery, including the creative economy,” they continued.

“We endorse the G20 Guidelines for Inclusive Community Development through Tourism and encourage the use of the AlUla Framework for Inclusive Community Development Through Tourism that aim to create jobs, empower local communities, especially rural, safeguard the planet, and preserve cultural heritage. We also endorse the G20 Guidelines for Action on Safe and Seamless Travel and welcome the establishment of the G20 Tourism Working Group,” they declared.



Moody's Upgrades Saudi Arabia's Credit Rating

Moody's indicated that the rating upgrade and stable outlook are results of the Kingdom's ongoing progress in economic diversification. Reuters
Moody's indicated that the rating upgrade and stable outlook are results of the Kingdom's ongoing progress in economic diversification. Reuters
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Moody's Upgrades Saudi Arabia's Credit Rating

Moody's indicated that the rating upgrade and stable outlook are results of the Kingdom's ongoing progress in economic diversification. Reuters
Moody's indicated that the rating upgrade and stable outlook are results of the Kingdom's ongoing progress in economic diversification. Reuters

The credit rating agency “Moody’s Ratings” upgraded Saudi Arabia’s credit rating to “Aa3” in local and foreign currency, with a “stable” outlook.
The agency indicated in its report that the rating upgrade and stable outlook are results of the Kingdom's ongoing progress in economic diversification and the robust growth of its non-oil sector. Over time, the advancements are expected to reduce Saudi Arabia’s exposure to oil market developments and long-term carbon transition on its economy and public finances.
The agency commended the Kingdom's financial planning within the fiscal space, emphasizing its commitment to prioritizing expenditure and enhancing the spending efficiency. Additionally, the government’s ongoing efforts to utilize available fiscal resources to diversify the economic base through transformative spending were highlighted as instrumental in supporting the sustainable development of the Kingdom's non-oil economy and maintaining a strong fiscal position.
In its report, the agency noted that the planning and commitment underpin its projection of a relatively stable fiscal deficit, which could range between 2%-3% of gross domestic product (GDP).
Moody's expected that the non-oil private-sector GDP of Saudi Arabia will expand by 4-5% in the coming years, positioning it among the highest in the Gulf Cooperation Council (GCC) region, an indication of continued progress in the diversification efforts reducing the Kingdom’s exposure to oil market developments.
In recent years, the Kingdom achieved multiple credit rating upgrades from global rating agencies. These advancements reflect the Kingdom's ongoing efforts toward economic transformation, supported by structural reforms and the adoption of fiscal policies that promote financial sustainability, enhance financial planning efficiency, and reinforce the Kingdom's strong and resilient fiscal position.