NEOM Engages Chinese Market

As the global tourism industry continues to navigate the post-pandemic recovery, NEOM‘s “Discover NEOM” showcase in Beijing and Shanghai underscores a strategic pivot towards the Chinese market, aiming to capture a larger share of China’s slowly rebounding outbound tourist sector.

The recovery of Chinese outbound tourism has been markedly uneven, with domestic travel booming while international excursions lag behind. A 2024 report from the National Bureau of Statistics highlights that while domestic trips have surged, achieving a record high, outbound travels are struggling to regain momentum. Specifically, cross-border trips reached only 60% of their pre-pandemic levels in 2023, with most travel confined to nearby Hong Kong, Macau, and Taiwan.

“Outbound tourism to locations outside of Greater China is particularly sluggish,” the report states, underscoring a cautious return to international travel among Chinese tourists. Given these dynamics, NEOM’s engagement in China through its high-profile events in Beijing and Shanghai is not just timely but essential as KSA seeks to position itself as a preferred destination for when outbound travel fully resumes.

chinese

Oxford Economics reports that they expect the number of international outbound trips made by Chinese travellers in 2024 to approximately double compared to 2023. Despite this significant increase, they note that travel volumes will still be 22% below the levels recorded in 2019.

Oxford Economics echoes the fact that a full recovery of Chinese outbound visits to pre-pandemic levels is not expected until 2025, indicating a notably slower rebound compared to other major global source markets. They also highlight that the Middle East is projected to experience the fastest recovery in arrivals from China among destination regions. They predict that visits to the Middle East will surpass pre-pandemic volumes in 2024.

From 2026 onwards, Chinese outbound travel is expected to catch up with and exceed demand from other source markets, once again becoming a major force in global travel dynamics, according to Oxford Economics.

Strategic engagements in Beijing and Shanghai

Nadhmi Al-Nasr, CEO, NEOM (photo PR Newswire)

The “Discover NEOM” events, held in partnership with the China Council for the Promotion of International Trade (CCPIT), showcased NEOM’s ambitious urban and economic projects to over 500 Chinese business leaders and potential investors. The tour began in Beijing on April 15, followed by Shanghai on April 17. Presentations highlighted the futuristic visions of THE LINE, Oxagon, Trojena, and Sindalah—each representing unique investment and tourist attractions within the NEOM framework.

Nadhmi Al-Nasr, CEO of NEOM, commented on the importance of these initiatives: “We are grateful to CCPIT Beijing and CCPIT Shanghai for supporting our visit to China and for the opportunity to present NEOM’s vision. To date, NEOM has already engaged with over 15 major Chinese businesses and invested in a number of Chinese startups to support the growth and diversification of NEOM. Collaboration with China will continue to play a vital role in the development of NEOM and we look forward strengthening our engagement with the country’s business community.”

The focus on NEOM’s innovative urban projects like THE LINE, and luxury destinations such as Sindalah, is particularly appealing given the shifting preferences among Chinese tourists from shopping to experiencing cultural and high-tech attractions. As noted in the economic report, while the overall number of Chinese travellers abroad might still be below pre-pandemic figures until 2025, those who will be traveling in coming years are increasingly drawn to unique and immersive experiences rather than traditional shopping excursions.

Looking ahead: a gradual rebound and strategic positioning

Despite current challenges, the outlook for China’s outbound tourism is optimistic, with expectations for a gradual but steady increase in travel willingness and expenditure. NEOM’s proactive approach in these showcase events aligns perfectly with these trends, positioning Saudi Arabia as a top-tier destination ready to welcome back high-spending Chinese tourists as international mobility restrictions ease further.

Photo courtesy of NEOM

“NEOM and Beijing have significant potential for economic cooperation as we pursue our mutually aligned goals,” said Guo Huaigang, Chairman of CCPIT Beijing. “Both Beijing and NEOM are accelerating the development of new modes of productivity, deepening comprehensive reforms, promoting scientific and technological innovation, and working to ensure the protection of our environment. We look forward to the role our cooperation can have in Beijing’s future prosperity.”

“Shanghai greatly values our relationship with Saudi Arabia,” said Zhao Zhuping, Deputy Secretary General of Shanghai Municipal Government. “Over the years, we have engaged in extensive cooperation across trade, education, culture and more. We look forward to deepening mutually beneficial engagement with NEOM across infrastructure, renewable energy and technological innovation. The benefits and opportunities for this partnership will only continue to grow.”

As travel advisors around the world watch these developments, the strategic moves by NEOM highlight a broader effort by the Kingdom of Saudi Arabia to attract a diverse international visitor base, leveraging the gradual revival of the Chinese outbound tourist market to establish a stronger presence in global tourism.

Discover NEOM China was the latest edition of NEOM’s global roadshows, following engagements across key international markets including Seoul, Tokyo, Singapore, New York City, Boston, Washington, D.C., Miami, Los Angeles, San Francisco, Paris, Berlin, and London.


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