Tourism has been one of the key industries in the region as part of the Kingdom's economic diversification plan. In developing Saudi Vision 2030, Saudi Arabia set a target of welcoming 100 million tourists by 2030. Saudi Arabia's Ministry of Tourism recently announced that the country received 27.5 million international tourists and 79.3 million domestic tourists in 2023, achieving the target of 100 million tourists in Vision 2030 seven years ahead of schedule.
The United Nations Tourism Organization (UNWTO) issued a statement on Tuesday praising the achievements of Saudi Arabia's tourism industry. According to its published data, domestic and foreign tourists spent more than 250 billion riyals ($67 billion) in 2023, accounting for more than 4% of the Kingdom's gross domestic product (GDP) and more than 7% of total non-oil GDP. According to Saudi Arabia's National Tourism Strategy, the goal is to increase the contribution of tourism to 10% of the country's GDP and establish the kingdom as a global tourist destination.
According to the Saudi Ministry of Tourism, the number of domestic tourists in Saudi Arabia in 2023 increased by 2% year-on-year, and the number of international tourists increased by 65% year-on-year. Among them, the number of Chinese tourists is also increasing. According to data from a number of travel platforms, orders from Chinese tourists to Saudi Arabia increased by more than 800% compared to the same period in 2019Tourist destinations such as the UAE and Morocco continue to rise in popularity.
The UNWTO said Saudi Arabia is on track to further achieve 1The goal is 500 million tourists. It is reported that in view of the good performance of Saudi Arabia's tourism industry in the first half of 2023, Saudi Arabia's Minister of Tourism, Ahmed al-Khateeb, adjusted the original target of "receiving 100 million tourists by 2030" to "receiving 1. by 2030."500 million tourists".
In addition, as of 2023, Saudi Arabia has created nearly 930,000 jobs in the tourism sector, which is expected to become the country's second-largest employment sector by 2030. The country aims to create 1.6 million jobs for society through tourism.
Saudi Arabia's global flights are also on the rise, with the big cities of Jeddah and Riyadh increasingly connecting to the rest of the world – such as direct flights between the two and the Moroccan port city of Casablanca, the Belgian capital Brussels, and Beijing, which just started this year. Saudi Arabia has pledged a further $1 trillion in significant investment in the tourism sector over the next 10 years, providing opportunities for global investors.
Under the guidance of the "Vision 2030" policy of economic diversification, Saudi Arabia has also continuously increased the development of tourism resources and the construction of tourism infrastructure in recent years. One of the more representative is the Red Sea tourism project. The project covers an area of 280,000 square kilometers, covering more than 200 kilometers of coastline and 90 islands. The first phase of the project includes an airport, two resorts and 14 hotels; the 2029 Asian Winter Games will also be held at the Niom Tourism Project, which aims to create a high-tech city with extensive application of innovative technologies and a sustainable living experience; More than 300 entertainment and sports facilities will be built in the Zidia tourism project, such as the world's largest theme parks; The ancient city of Al Ula is the site of Saudi Arabia's first World Heritage Site, where a nature reserve and an international resort will be built to become an open archaeological and cultural complex.
Behind Saudi Arabia's increased investment in tourism is the decline of its main oil revenue. Affected by the continuous production reduction policy, the Saudi economy is showing signs of recession. According to data released by the Saudi Bureau of Statistics, Saudi Arabia's GDP contracted by 3 percent year-on-year in the fourth quarter of last year7%, extending the third quarter of 4With a downward trend of 4%, GDP for the whole of 2023 will decline by 09%, the first full-year decline since 2019.
The recession was mainly brought about by a reduction in oil production. Saudi Arabia, the world's largest oil exporter, is currently producing about 9 million barrels per day (bpd) to implement the OPEC+ production cuts, well below its cap of about 12 million bpd. The cut itself is intended to push oil prices higher, but this strategy has had a negative impact on the economy in the short term, leading to a decline in GDP.
As a country with an economy highly dependent on oil exports, Saudi Arabia's economic performance has always been closely related to oil production and **. As a result, Saudi Arabia's fourth-quarter oil production fell sharply by 16% year-on-year. The IMF expects Saudi Arabia's economy to return to growth over the next two years, but its 2024 growth** is second only to Argentina among G20 countries.
After 2022, Saudi Arabia has adjusted its fiscal strategy from a surplus to a deficit, and is expected to maintain it until 2026.
At present, Saudi Arabia is investing heavily in new industries, such as electric vehicles and pharmaceuticals, to meet domestic demand and expand export markets. The transformation plan aims to take a more prominent position in the global economy, reduce dependence on oil revenues, and promote the development of other industries.
According to the budget announcement for fiscal year 2024 issued by the Saudi Ministry of Finance, the total revenue for the fiscal year is expected to be 117 trillion Saudi riyals (3,124.)$800 million), with a total expenditure of $1At SAR 25 trillion, the deficit will remain at around SAR 79 billion (USD 21 billion), and gross domestic product (GDP) will grow by 4 for the year4%。
Comprehensive report by Beijing Business Daily.