Saudi Arabia is reported to be seeking up to US$80bn in private investment for the tourism sector in order to reach its Vision 2030 targets.
In a move to share the economic responsibilities of the Kingdom’s expansive plans, Tourism Minister Ahmed al-Khateeb has expressed an ambitious desire for the private sector to be a growing source of investment, seeking to amass between US$60bn and US$80bn by the year 2030.
In a statement that resonates with the proactive stance of the Ministry of Tourism, the minister underscored the significant progress already made, with Saudi Arabia achieving the extraordinary feat of welcoming 100 million tourists by the end of 2023—a full seven years ahead of the timeline set by the nation’s strategic framework, Saudi Vision 2030.
The government’s comprehensive strategy involves US$800bn of state-funded investment earmarked for tourism over the next ten years, heralding Saudi Arabia’s transition to a post-oil era.
This future-forward outlook includes becoming a central hub for diverse sectors, such as mineral mining and sports, with the goal of attracting 150 million tourists annually by 2030, approximately half of whom are expected to be international visitors.
Al-Khateeb has placed considerable emphasis on leveraging the substantial middle-class populations in India and China to increase international tourism figures, whilst also viewing the UK market as particularly attractive. Furthermore, the minister noted the potential in French and German markets.
Already this year, the Ministry of Tourism has introduced a novel programme designed to streamline the investment procedure and lower the entry thresholds for potential investors. The initiative is expected to draw up to US$13bn from private sector contributions in the near future, “getting the ball rolling” towards the eventual target of up to US$80bn.
Princess Haifa Al-Saud, KSA’s vice minister for tourism, is reported to have said the new investments should increase the kingdom’s stock of hotel rooms by 150,000 to 200,000 within the next two years. In an interview with Bloomberg, the Princess is quoted as stating that Saudi Arabia aims to raise tourism revenue to US$85bn this year, up from approximately US$66 billion in 2023.
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