Saudi Call for Financing First International Fund to Support Global Tourism Sector

 Visitors walk outside the tombs at the Madain Saleh antiquities site, AlUla, Saudi Arabia February 10, 2019. Picture taken February 10, 2019. REUTERS/Stephen Kalin
Visitors walk outside the tombs at the Madain Saleh antiquities site, AlUla, Saudi Arabia February 10, 2019. Picture taken February 10, 2019. REUTERS/Stephen Kalin
TT

Saudi Call for Financing First International Fund to Support Global Tourism Sector

 Visitors walk outside the tombs at the Madain Saleh antiquities site, AlUla, Saudi Arabia February 10, 2019. Picture taken February 10, 2019. REUTERS/Stephen Kalin
Visitors walk outside the tombs at the Madain Saleh antiquities site, AlUla, Saudi Arabia February 10, 2019. Picture taken February 10, 2019. REUTERS/Stephen Kalin

Saudi Arabia called on donor countries to participate in financing the first international fund dedicated to supporting the tourism sector. The Kingdom stressed that the Covid-19 pandemic had highlighted the importance of the sector as a key driver in advancing growth and recovery.

In a speech at the Spring Meetings of the International Monetary Fund and the World Bank Group, Saudi Minister of Tourism Ahmed Al-Khatib said that the Saudi government’s pledge to provide $100 million to establish the Tourism Support Fund, in cooperation with the World Bank, would contribute to help communities affected by the Covid-19 pandemic to overcome the devastating impact of the crisis.

The minister added that international cooperation was crucial to achieve the desired economic growth, calling on donor countries and the private sector to contribute to building the trust fund.

Al-Khatib also touched on the successful Saudi experience in terms of accelerating the revival of the tourism sector and attracting tourists from inside and outside the Kingdom, in addition to the targeted initiatives that seek to promote the future of sustainable tourism.

The Spring Meetings of the World Bank Group were attended by ministers, government officials, and civil society representatives, who discussed the means to build a greener and more inclusive future for disadvantaged communities in the tourism sector, as well as the impact of global crises such as the pandemic and climate change on societies.

In 2020, the World Tourism Organization (WTO) and the G20 Tourism Working Group launched the AlUla Framework for Inclusive Community Development. The move was followed by the 2020 G20 Summit Leaders’ Declaration in Riyadh, to establish a sustainable and inclusive tourism program.

In 2021, the Kingdom contributed to the launch of the World Center for Sustainable Tourism, a multilateral alliance that aims to reduce the tourism sector’s contribution to carbon emissions around the world, as the sector accounts for 8 percent of emissions.

Moreover, Saudi Arabia signed in May 2021 a memorandum of understanding with the World Bank and the WTO to activate the Tourism Community Initiative, which aims to promote sustainable tourism, inclusive growth, provide job opportunities, and preserve natural heritage in developing countries.

The Kingdom is working to enhance its tourism environment and contribute to achieving the goals of the National Tourism Development Strategy, which aims by 2030 to receive 100 million visits annually from inside and outside the Kingdom, and to increase the sector’s contribution to the gross domestic product to 10 percent while creating one million new job opportunities.

The 2022 Spring Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG) kicked off on Monday and will conclude on April 24.



OPEC Again Cuts 2024, 2025 Oil Demand Growth Forecasts

The OPEC logo. Reuters
The OPEC logo. Reuters
TT

OPEC Again Cuts 2024, 2025 Oil Demand Growth Forecasts

The OPEC logo. Reuters
The OPEC logo. Reuters

OPEC cut its forecast for global oil demand growth this year and next on Tuesday, highlighting weakness in China, India and other regions, marking the producer group's fourth consecutive downward revision in the 2024 outlook.

The weaker outlook highlights the challenge facing OPEC+, which comprises the Organization of the Petroleum Exporting Countries and allies such as Russia, which earlier this month postponed a plan to start raising output in December against a backdrop of falling prices.

In a monthly report on Tuesday, OPEC said world oil demand would rise by 1.82 million barrels per day in 2024, down from growth of 1.93 million bpd forecast last month. Until August, OPEC had kept the outlook unchanged since its first forecast in July 2023.

In the report, OPEC also cut its 2025 global demand growth estimate to 1.54 million bpd from 1.64 million bpd, Reuters.

China accounted for the bulk of the 2024 downgrade. OPEC trimmed its Chinese growth forecast to 450,000 bpd from 580,000 bpd and said diesel use in September fell year-on-year for a seventh consecutive month.

"Diesel has been under pressure from a slowdown in construction amid weak manufacturing activity, combined with the ongoing deployment of LNG-fuelled trucks," OPEC said with reference to China.

Oil pared gains after the report was issued, with Brent crude trading below $73 a barrel.

Forecasts on the strength of demand growth in 2024 vary widely, partly due to differences over demand from China and the pace of the world's switch to cleaner fuels.

OPEC is still at the top of industry estimates and has a long way to go to match the International Energy Agency's far lower view.

The IEA, which represents industrialised countries, sees demand growth of 860,000 bpd in 2024. The agency is scheduled to update its figures on Thursday.

- OUTPUT RISES

OPEC+ has implemented a series of output cuts since late 2022 to support prices, most of which are in place until the end of 2025.

The group was to start unwinding the most recent layer of cuts of 2.2 million bpd from December but said on Nov. 3 it will delay the plan for a month, as weak demand and rising supply outside the group maintain downward pressure on the market.

OPEC's output is also rising, the report showed, with Libyan production rebounding after being cut by unrest. OPEC+ pumped 40.34 million bpd in October, up 215,000 bpd from September. Iraq cut output to 4.07 million bpd, closer to its 4 million bpd quota.

As well as Iraq, OPEC has named Russia and Kazakhstan as among the OPEC+ countries which pumped above quotas.

Russia's output edged up in October by 9,000 bpd to about 9.01 million bpd, OPEC said, slightly above its quota.