Saudi Arabia to seek foreign investment in tourism sector

Speaking to Khaleej Times yesterday at the Arabian Travel Market (ATM), Prince Fahd said, Saudi Arabia's tourism sector is in for major boom in the next two decades and the newly created Supreme Commission is working on a blue print for developments across the Kingdom.

Saudi nationals spend over Dh30 billion on tourism and leisure travel annually in the domestic market while their annual overseas expenditure on leisure and business travel is estimated at Dh20 billion.

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“Saudi Arabia has great potential as a tourist destination for both the Western and Eastern world as it covers more than 80 per cent of the Arabian Peninsula. In addition to the religious significance, it has been the cradle of several cultures. We are gradually opening the gates to tourists from across the world to experience the Saudi diversity,” the Prince said.

Hinting at a more liberal approach to the tourism sector in the Kingdom, Prince Fahd said, the tourism sector in the Middle East is growing at more than 16 per cent per annum while in Saudi Arabia, the growth rate is about 2 per cent, the new growth strategies are expected to boost the growth rate. In addition to boosting the general tourism potential the Kingdom has plans to emerge as leding healthcare tourism destination in the region.

“Unfortunately our current market share in the tourism sector is very low due to historical reasons. We have a lot of catch up to do in this sector,” he said. The Supreme Commission for Tourism will work closely with private sector investors by creating transparent policies and procedures.

The primary concern of the Commission is to involve the private sector in various projects and build the basic infrastructure for the sector. “We are currently working on a 20 year master plan to develop the Kingdom's tourism infrastructure. Unlike many other countries in the region, Saudi Arabia is large geographically and demographically and it takes a bit longer to plan and execute projects in the Kingdom. However, with the participation of the private investors we expect to move faster,” he said.

Speaking about the response from both domestic and international investors, Prince Fahd said, there have been over 65 per cent increase in investments in during the first five months of the year. “The Commission has identified a number of new projects. The key ingredient will be to package new products for various markets. Under the direct supervision and guidance of the Commission both domestic and foreign investors will be allowed in the sector.”Saudi Arabia has a big presence at the ATM where a number of new tourism initiatives are showcased at the Saudi Supreme Commission for Tourism's stand.