Tour operators see potential in Saudi tourism market

dubai - They are counting on the country's recent decision to issue tourist visas

As Saudi Arabia prepares to start issuing tourist visas to visitors, hospitality companies and tour operators in the UAE and the GCC region are increasingly looking for opportunities in the lucrative market.

Earlier this month, the Saudi Commission for Tourism and National Heritage (SCTH) said it had finalised regulations regarding the issuance of tourist visas and submitted them to the government for approval. The move comes after the Kingdom launched its Vision 2030 programme to lessen its dependence on oil revenues.

Experts at the Arabian Travel Market (ATM 2018) noted that every year Saudi Arabia welcomes a record number of travellers - the majority of who are pilgrims that arrive for the annual Hajj and Umrah pilgrimages. The landscape will change once travellers are able to apply and get a tourist visa, experts say.

Officials from the SCTH revealed that the timeline for issuing tourist visas had been slightly delayed due to some technical difficulties, but the issue would soon be resolved. Tour and hotel operators at the Saudi Tourism stand said they were confident that tourist visas would be issued by the end of this quarter and were already planning to showcase the very best that the Kingdom had to offer.

"Besides, the opening of the Saudi economy under the country's current leadership, one would expect a lot more tourism projects coming up in future, as part of the Saudi Vision 2030," said Avin Gidwani, chief executive officer of BNC Network.

Travel agents also noted that KSA was a popular destination for travellers from the GCC, especially those from the UAE. According to an analysis conducted by Travelport, from April 1, 2017 to March 31, 2018, bookings made in the UAE through all global distribution systems (GDS) to Saudi Arabia increased by 30,000, up 11 per cent on the previous 12 months. "The growth in booking volume to Saudi Arabia reflects the country's escalating attractiveness as a tourist hotspot, the strength of business ties with the UAE and new capacity added by airlines like Etihad," said Matthew Powell, Travelport's managing director for the Middle East, Africa and South Asia.

International hospitality vendors are also confident about the upcoming tourism boom in the Kingdom and have announced several expansion plans for the region. Al Hokair Group recently signed a master development agreement with InterContinental Hotels Group (IHG) which will see the debut of the Holiday Inn Express brand in Saudi Arabia, with the rollout of 10 Holiday Inn Express hotels over the next 15 years. Al Hokair Group currently operates 6 Holiday Inn hotels in Saudi Arabia. As part of the new agreement, the first Holiday Inn Express will be a 200-room hotel based in Jeddah, closely followed by openings in various key cities across the country. All 10 hotels will be operated under long-term franchise agreements.
Sami Al Hokair, MD of Al Hokair Group, said: "We are very excited to expand our footprint in the mid-market segment. The signing of this agreement will open opportunities for us in the mid-market segment."

Pascal Gauvin, MD for India, the Middle East, and Africa at IHG, said IHG has a strong legacy in Saudi Arabia, which is a key market for the group in the Middle East. "The tourism landscape in Saudi Arabia is rapidly changing and we are excited to leverage the huge growth opportunities that Saudi Vision 2030 presents, particularly given that one of the biggest pillars of the plan is to bring more tourism into the country."

- rohma@khaleejtimes.com