Saudi Arabia has stepped up efforts to reposition tourism as a pillar of global economic policy, arguing at the World Economic Forum in Davos that the sector can provide stabilisation, inclusive growth and resilience at a time of slowing global expansion and rising fiscal pressure.
In an article published by the World Economic Forum ahead of its Annual Meeting in Davos, Saudi Arabia’s Minister of Tourism Ahmed Al Khateeb said travel and tourism remains one of the few sectors capable of delivering immediate, broad-based economic stimulus, while supporting job creation, small businesses and social cohesion.
The intervention comes as the global economy faces its weakest medium-term growth outlook in decades. Global GDP is projected to expand at around 3.1% in 2026, while public debt levels are expected to exceed 100% of GDP by the end of the decade. Trade growth has remained subdued, limiting traditional export-led recovery models.
Against this backdrop, Al-Khateeb argues that tourism is frequently underestimated by policymakers despite its scale, resilience and distributional impact. He notes that up to 80% of tourism’s economic value flows directly to small and medium-sized enterprises and local communities, making it one of the most inclusive sectors globally.
Tourism as a stabilising economic force
In his article, Al-Khateeb frames tourism not only as a source of growth, but as a counter-cyclical stabiliser. The sector has historically rebounded faster than many others following economic shocks, absorbing displaced workers and supporting regional economies during periods of volatility.
He also highlights tourism’s labour-intensive nature at a time when global labour markets are under strain. While the sector is expected to create up to 91 million new jobs by 2035, it faces a projected shortfall of 43 million workers, underscoring its importance for youth employment, women’s participation and workforce transitions.
Beyond economics, Al-Khateeb positions tourism as a contributor to social cohesion and trust, particularly in advanced economies where a majority of citizens report rising inequality. He describes tourism as a platform for “everyday diplomacy”, facilitating people-to-people exchange at a time when formal political and trade channels are under pressure.
Technology and infrastructure gaps
The Davos article also points to technology as a key enabler of productivity in travel and tourism. Digitalisation, artificial intelligence and biometric systems could deliver productivity gains of between 15% and 40%, helping address labour shortages while improving service quality and security.
However, Al-Khateeb cautions that technology alone is insufficient. He highlights a persistent investment imbalance, with only around 12% of global tourism investment flowing to emerging and secondary destinations, despite those regions accounting for more than half of future growth potential.
Closing this gap, he argues, will require coordinated public–private investment, blended finance and clearer long-term planning frameworks to reduce risk and attract capital beyond established markets.
Saudi Arabia as a case study in Davos
Saudi Arabia’s own tourism strategy is presented as an example of how the sector can be treated as economic infrastructure rather than discretionary spending. In 2024, the Kingdom welcomed more than 115 million domestic and international visitors, surpassing its original 2030 tourism target seven years ahead of schedule
Under Vision 2030, Saudi Arabia plans to invest up to US$800 billion in tourism-related development by 2030, spanning aviation connectivity, destination development, digital platforms and workforce training. Tourism employment surpassed one million jobs by 2024, contributing to labour market absorption and regional diversification.
Flagship projects such as AlUla, Diriyah and the Red Sea are cited as examples of destination development models that prioritise cultural preservation, local supply chains and regenerative design, rather than short-term volume growth.
From national policy to global framework
Al-Khateeb’s WEF article follows closely on the launch in November 2025 of the Principles for Transformative Tourism, a global framework spearheaded by the World Economic Forum with the active support of the Saudi Ministry of Tourism.
Unveiled in Riyadh alongside the report Beyond Tourism: Coordinated Pathways to Inclusive Prosperity, the initiative aims to guide the evolution of a global tourism sector projected to generate US$16 trillion in GDP and 30 billion trips by 2034.
The principles redefine tourism as a “sector of sectors”, integrating infrastructure, finance, technology, labour, culture and environmental systems into a single policy ecosystem. They call for coordinated cross-sector action to shift tourism from growth-driven expansion towards regenerative and inclusive prosperity.
Speaking at the launch, Al-Khateeb said the initiative was about “redesigning tourism for the next century”, emphasising workforce readiness, shared infrastructure, responsible technology use and ecosystem protection.
Building a global coalition
The Transformative Tourism initiative has brought together a cross-sector coalition including governments, multilateral institutions, tourism boards, technology firms, investors and hospitality groups. Participants span aviation, finance, real estate, insurance and destination management, reflecting the Forum’s ecosystem-based approach.
As part of the programme, regional demonstration projects are expected to be identified from 2026 to test how coordinated tourism development can reduce resident–visitor tensions, restore ecosystems and deliver measurable economic and social outcomes. New benchmarking tools are also planned to track progress on regenerative and inclusive metrics.
Tourism and global resilience
In his WEF article, Al-Khateeb concludes that tourism should be recognised as a strategic pillar of economic resilience and global cooperation, particularly in a fragmented geopolitical environment. Sustained investment in mobility, infrastructure, talent and technology, he argues, is essential to keep economies open, connected and adaptable.
Saudi Arabia’s approach, he says, demonstrates how tourism can be intentionally designed as economic infrastructure that strengthens domestic resilience while contributing to global stability — a model the Kingdom is now seeking to advance on the international stage ahead of Davos 2026.
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Read also: Al Khateeb: Saudi Arabia determined to lead by example in shaping tourism’s future
