50 Agreements Worth $50 Bln Signed at WTTC’s Global Summit in Riyadh

The Global Summit of the World Travel & Tourism Council (WTTC) is currently being held in Riyadh. (Asharq Al-Awsat)
The Global Summit of the World Travel & Tourism Council (WTTC) is currently being held in Riyadh. (Asharq Al-Awsat)
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50 Agreements Worth $50 Bln Signed at WTTC’s Global Summit in Riyadh

The Global Summit of the World Travel & Tourism Council (WTTC) is currently being held in Riyadh. (Asharq Al-Awsat)
The Global Summit of the World Travel & Tourism Council (WTTC) is currently being held in Riyadh. (Asharq Al-Awsat)

More than 50 agreements and memorandums of understanding, with a value exceeding $50 billion, were signed on the sidelines of the Global Summit of the World Travel & Tourism Council (WTTC) in Riyadh on Tuesday.

Saudi Tourism Minister Ahmed Al-Khatib said the tourism sector was expected to generate 126 million new jobs in the next decade.

“The opportunity for us as tourism leaders is to focus the energies towards creating an industry fit for the future, an industry that is more sustainable and resilient, and better able to create wealth and unlock opportunities... We must put people and planet first and at the center of every decision we make,” Al-Khatib said in his opening speech.

Millions of jobs

“Tourism will generate 126 million new jobs in the next decade,” the minister noted. “This means that one out of every three new jobs created will be in our sector.”

He emphasized that the Kingdom was reimagining tourism while relying on the strength of partnership.

“A shared commitment to partnership will drive the global industry forward... Last October, we launched the Global Center for Sustainable Tourism as a multi-country, multi-stakeholder organization to lead and accelerate the path towards net zero emissions,” he stated.

Sustainability and youth

Al-Khatib said that within the framework of the Saudi Green Initiative, the Kingdom has launched more than 60 initiatives in 2021. He explained that the first batch of initiatives accounted for more than $186 billion, noting that his country was aware that travelers and investors favored policies that promote sustainability in the industry.

In this context, the Saudi minister announced an ongoing plan to make the Kingdom “a leader in the field of sustainable tourism.”

He continued: “We must make sure that we invest in the future of youth, as two-thirds of the population is under the age of 35... We encourage them to become the tourism leaders of tomorrow... We launched a program to train 100,000 young Saudis every year in this sector.”

Moreover, he said Crown Prince Mohammed bin Salman’s announcement on Monday of the launch of the masterplan for King Salman International Airport will place the Kingdom at the forefront of the world, bolster tourism help implement major projects.

Expected initiatives

The Saudi Ministry of Tourism revealed a plan to enhance the organizational development process in many areas, in partnership with the private sector, announcing 28 initiatives that will be launched this year to develop the business environment in the field of tourism.

In this regard, Minister of Investment Khalid Al-Falih stressed the importance of government coordination and the integration of work within ministries to achieve success in various sectors.

In remarks during a panel discussion entitled, “Travel for a Better Future”, the minister said the tourism sector would certainly benefit from the growth taking place at various levels in the Kingdom, hoping that the legal frameworks would develop globally to keep pace with the technological progress and thus, facilitate travel, tourism and human interdependence.

Initiatives and partnerships

Princess Haifa Al Saud, Deputy Minister of Tourism, underlined the importance of partnership between the public and private sectors in the development of the Kingdom’s tourism sector.

She said that thanks to continuous efforts, Saudi Arabia was able to register a 121 percent growth in the number of passengers during the first seven months of this year.

The Kingdom considers cooperation at the international level on the one hand, and between the public and private sectors on the other, as an essential element for the tourism sector’s success in achieving its desired goals, she remarked.

Princess Haifa added that determination and joint action were among the most important factors for the success of the Kingdom’s pioneering experience in developing the tourism sector and increasing its value in the national economy and its share in the GDP.

She pointed to a plan to enhance the organizational development process in many areas in partnership with the private sector, revealing 28 initiatives that will be launched this year to develop the business environment in the field of tourism.

Recovery

Zurab Pololikashvili, Secretary-General of the World Tourism Organization, stressed the strong recovery of travel and tourism and the lessons that the world and institutions operating in the sector have learned from past experiences.

He highlighted the need to develop logistical and financial support mechanisms and permanent coordination with governments, in addition to legislative and regulatory structures and educational systems to keep up with the changes.

Pololikashvili also praised the rapid development of the tourism sector in the Kingdom, which he said was a pioneering model at the international level.

Human element

Anthony Capuano, CEO of Marriott International Group, emphasized the importance of the human element in the tourism sector, which lost 60 million jobs during the past two years due to the pandemic.

He pointed to Saudi Arabia’s successful model of partnership between the public and private sectors to develop the human resources that are capable of enriching the sector and improving its experiences.

Supporting 10,000 SMEs in the Saudi tourism sector

The Saudi Tourism Development Fund announced on Tuesday the launch of programs to support 10,000 Saudi SMEs, which are one of the main pillars of economic and social development in the Kingdom.

The Tourism Aid program consists of three sub-programs, which cover the various financial needs of this segment, whether to launch new commercial projects or for the purpose of expanding business.

1st climate footprint in tourism sector

Meanwhile, the World Travel and Tourism Council revealed new data showing the climate footprint for the global travel and tourism sector.

In a speech on the findings of the environmental and social research, Julia Simpson, President and CEO of the World Travel and Tourism Council, announced that thanks to the project, which is one of the largest research projects of its kind ever, the Council will be able to provide accurate reports and track the impact of various sector activities on the environment.

Previous estimates had indicated that the global travel and tourism sector was responsible for up to 11 percent of all global emissions.

However, the World Travel and Tourism Council’s groundbreaking research shows that the sector’s total greenhouse gas emissions were only 8.1 percent in 2019 globally.



Revenue Growth, Improved Operational Efficiency Boost Profitability of Saudi Telecom Companies

A man monitors the movement of stocks on the Saudi Tadawul index. (AFP)
A man monitors the movement of stocks on the Saudi Tadawul index. (AFP)
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Revenue Growth, Improved Operational Efficiency Boost Profitability of Saudi Telecom Companies

A man monitors the movement of stocks on the Saudi Tadawul index. (AFP)
A man monitors the movement of stocks on the Saudi Tadawul index. (AFP)

Telecommunications companies listed on the Saudi Stock Exchange (Tadawul) achieved a 12.46 percent growth in their net profits, which reached SAR 4.07 billion ($1.09 billion) during the second quarter of 2024, compared to SAR 3.62 billion ($965 million) during the same period last year.

They also recorded a 4.76 percent growth in revenues during the same quarter, after achieving sales worth more than SAR 26.18 billion ($7 billion), compared to SAR 24.99 billion ($6.66 billion) in the same quarter of 2023.

The growth in the revenues and net profitability is the result of several factors, including the increase in sales volume and revenues, especially in the business sector and fifth generation services, as well as the decrease in operating expenses and the focus on improving operational efficiency, controlling costs, and moving towards investment in infrastructure.

The sector comprises four companies, three of which conclude their fiscal year in December: Saudi Telecom Company (STC), Mobily, and Zain Saudi Arabia. The fiscal year of Etihad Atheeb Telecommunications Company (GO) ends on March 31.

According to its financial results announced on Tadawul, Etihad Etisalat Company (Mobily) achieved a 33 percent growth rate of profits, bringing its profits to SAR 661 million by the end of the second quarter of 2024, compared to SAR 497 million during the same period in 2023. The company also achieved a 4.59 percent growth in revenues to reach SAR 4.47 billion, compared to SAR 4.27 billion in the same quarter of last year.

The Saudi Telecom Company achieved the highest net profits among the sector’s companies, at about SAR 3.304 billion in the second quarter of 2024, compared to SAR 3.008 billion in the same quarter of 2023. The company registered a growth of 4.52 percent in revenues.

On the other hand, the revenues of the Saudi Mobile Telecommunications Company (Zain Saudi Arabia) increased by about 6.69 percent, as it recorded SAR 2.55 billion during the second quarter of 2024, compared to SAR 2.39 billion in the same period last year.

Commenting on the quarterly results of the sector’s companies, and the varying net profits, the head of asset management at Rassanah Capital, Thamer Al-Saeed, told Asharq Al-Awsat that the Saudi Telecom Company remains the sector leader in terms of customer base expansion.

He also noted the continued efforts of Mobily and Zain to offer many diverse products and other services.

Financial advisor at the Arab Trader Mohammed Al-Maymouni said the financial results of telecom sector companies have maintained a steady growth, up to 12 percent, adding that Mobily witnessed strong progress compared to the rest of the companies, despite the great competition which affected its revenues.

He added that Zain was moving at a good pace and its revenues have improved during the second quarter of 2024. However, its profits were affected by an increase in the financing cost by SAR 26.5 million riyals and a rise in interest, while net income declined significantly compared to the previous year, during which the company made exceptional returns.