COVID-19 Vaccine Spurs Expectations for Saudi Tourism Growth

Saudi men stand outside a tourist site in the Kingdom. (File photo: AFP)
Saudi men stand outside a tourist site in the Kingdom. (File photo: AFP)
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COVID-19 Vaccine Spurs Expectations for Saudi Tourism Growth

Saudi men stand outside a tourist site in the Kingdom. (File photo: AFP)
Saudi men stand outside a tourist site in the Kingdom. (File photo: AFP)

Expectations have increased for the growth of the Saudi tourism sector in 2021 with signs of a global economic recovery and the availability of the new COVID-19 vaccine.

Mohammad Al-Mujil, a businessman in the tourism sector and a former head of the Tourism Committee at the Chamber of Commerce and Industry in Riyadh, expressed great optimism in the gradual revival of the economic activity in general and the fast growth of tourism inside and outside the Kingdom.

He also expected that the Saudi tourism sector would regain its vitality as of the third quarter of 2021.

“Expectations have risen in Saudi Arabia after the government made decisions to resume travel under compulsory conditions and the daily vaccination campaign which is moving at a rapid pace,” Mujil told Asharq Al-Awsat.

“Starting from the first quarter of 2021, we will witness the revival of business tourism and hotel activities, and the launch of attractive events, with expectations of increasing investments in stalled projects in light of the expected support from the Tourist Fund, as well as the emergence of mega plans such as the Red Sea project,” he added.

For his part, Majid Al-Hokair, former head of the Saudi National Tourism Committee at the Council of Chambers, told Asharq Al-Awsat that expectations for an increase in the growth of the Saudi tourism sector were high, “with the adoption of adequate policies and plans and the increasing hope in the positive effects of the vaccination campaign in the Kingdom and abroad.”

In this context, Economist Dr. Khaled Ramadan, head of the International Center for Strategic Studies, expected that the tourism sector would achieve a gradual recovery this year and would compensate for the losses incurred in 2020 as the result of the pandemic.

He stated that the new projects and development in the tourism sector in the Kingdom would create around one million job opportunities and increase the sector’s contribution to the GDP from 3.8 percent to 10 percent.



UN Predicts World Economic Growth to Remain at 2.8% in 2025

A vegetable vendor sits beside a bonfire on his handcart on a cold winter evening in New Delhi on January 6, 2025. (Photo by Sajjad HUSSAIN / AFP)
A vegetable vendor sits beside a bonfire on his handcart on a cold winter evening in New Delhi on January 6, 2025. (Photo by Sajjad HUSSAIN / AFP)
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UN Predicts World Economic Growth to Remain at 2.8% in 2025

A vegetable vendor sits beside a bonfire on his handcart on a cold winter evening in New Delhi on January 6, 2025. (Photo by Sajjad HUSSAIN / AFP)
A vegetable vendor sits beside a bonfire on his handcart on a cold winter evening in New Delhi on January 6, 2025. (Photo by Sajjad HUSSAIN / AFP)

Global economic growth is projected to remain at 2.8% in 2025, unchanged from 2024, held back by the top two economies, the US and China, according to a United Nations report released on Thursday.

The World Economic Situation and Prospects report said that "positive but somewhat slower growth forecasts for China and the United States" will be complemented by modest recoveries in the European Union, Japan, and Britain and robust performance in some large developing economies, notably India and Indonesia.

"Despite continued expansion, the global economy is projected to grow at a slower pace than the 2010–2019 (pre-pandemic) average of 3.2%," according to the report by the UN Department of Economic and Social Affairs.

"This subdued performance reflects ongoing structural challenges such as weak investment, slow productivity growth, high debt levels, and demographic pressures," Reuters quoted it as saying.

The report said US growth was expected to moderate from 2.8% last year to 1.9% in 2025 as the labor market softens and consumer spending slows.

It said growth in China was estimated at 4.9% for 2024 and projected to be 4.8% this year with public sector investments and a strong export performance partly offset by subdued consumption growth and lingering property sector weakness.
Europe was expected to recover modestly with growth increasing from 0.9% in 2024 to 1.3% in 2025, "supported by easing inflation and resilient labor markets," the report said.

South Asia is expected to remain the world’s fastest-growing region, with regional GDP projected to expand by 5.7% in 2025 and 6% in 2026, supported by a strong performance by India and economic recoveries in Bhutan, Nepal, Pakistan and Sri Lanka, the report said.

India, the largest economy in South Asia, is forecast to grow by 6.6% in 2025 and 6.8% in 2026, driven by robust private consumption and investment.
The report said major central banks are likely to further reduce interest rates in 2025 as inflationary pressures ease. Global inflation is projected to decline from 4% in 2024 to 3.4% in 2025, offering some relief to households and businesses.
It calls for bold multilateral action to tackle interconnected crises, including debt, inequality, and climate change.
"Monetary easing alone will not be sufficient to reinvigorate global growth or address widening disparities," the report added.