The Kingdom of Saudi Arabia has witnessed a remarkable surge in its tourism financial surplus, with the Saudi Central Bank (SAMA) reporting a 72% growth in the first three quarters of 2023 compared to the same period in 2022.
The surplus in the travel item of the balance of payments reached around SAR 37.8 billion (US$10bn), indicating not just a recovery, but a robust expansion of the tourism sector to unprecedented levels, now 150% above the pre-pandemic era. Total visitor spending during the first three quarters of 2023 surpassed SAR 100 billion (US$26.6bn).
This significant increase in the tourism surplus is a clear reflection of the Kingdom’s ambitious and successful reorientation of its tourism policy. Rooted in the Vision 2030 agenda, Saudi Arabia has actively worked to diversify its economy, with tourism playing a key role in this transformation. The introduction of new tourist visas, the e-visa system, and the relaxation of entry regulations have made the Kingdom a more accessible and attractive destination for international visitors.
The policies have been complemented by considerable investment in tourism infrastructure. From luxury resorts along the Red Sea to the ancient Nabatean tombs of Al-Ula, Saudi Arabia has enhanced its appeal to tourists through both its natural and historical heritage. These efforts have positioned the country as a new hub for international travellers seeking diverse cultural and leisure experiences.
According to reports from the World Tourism Organization, Saudi Arabia has emerged as a leader in tourism growth among G20 countries during the first three quarters of 2023. Moreover, the Kingdom is now considered the second fastest-growing tourist destination globally, an impressive feat that underscores the impact of its strategic development initiatives.
Behind this impressive financial performance is a tapestry of social and cultural reforms that have made the Kingdom more open and welcoming. Relaxed social codes, increased entertainment options, and international events have not only diversified the visitor demographic but also reshaped the global perception of Saudi Arabia as a tourist destination.
The hospitality industry in Saudi Arabia has responded in kind, with a proliferation of new hotels, resorts, and tourist services. International hotel chains and local enterprises alike have benefited from government incentives aimed at fostering a competitive and vibrant tourism sector.
The substantial increase in the tourism surplus serves as a bellwether for the broader economic health of the country, showcasing the potential of tourism to drive economic diversification. As Saudi Arabia continues to evolve its policies and expand its offerings, the tourism sector is poised to play an even greater role in the economic narrative of the Kingdom, delivering on the promise of Vision 2030 and beyond.
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