Saudi Arabia has its sights set on India as a key market for its burgeoning tourism industry, following a staggering 50% increase in Indian visitors in 2023, amounting to approximately 1.5 million travellers. This remarkable growth is bolstered by a 31% increase in air connectivity between the two nations since 2019, with flights now linking 12 major Indian hubs to key Saudi cities like Riyadh, Jeddah, and Dammam. Targeting this burgeoning market, the ITB India trade fair will play a critical role.
With ambitious plans to attract 7.5 million Indian tourists over the next seven years, the Kingdom is actively ramping up its marketing and outreach efforts to solidify its position as a premier destination for Indian travellers.
Why is India such an important market for KSA?
A report by booking.com and McKinsey reveals that 70% of Indians travelling overseas prefer nearby destinations, with one-third opting for Middle Eastern destinations.
The report indicates that due to rapid economic growth, the number of households with annual incomes between US$10,000 and US$35,000 is expected to rise from 37 million in 2020 to a significant 177 million by 2030. Additionally, households earning over US$35,000 per annum are anticipated to increase sixfold, from two million in 2020 to 13 million by 2030.
India’s population is young, with a median age of 28, leading UN Tourism to recognise India as one of the top three fastest-growing outbound markets globally. By 2030, India’s total travel expenditure is predicted to reach an impressive US$410 billion, marking a remarkable 173% increase from US$150 billion in 2019.
The proximity of Gulf states, being just a three-hour flight from Mumbai, has further fuelled the enthusiasm of Indian travellers. Increased connectivity and affordable air travel, particularly from tier-two cities, along with the presence of over 8.5 million Indian expatriates working in the GCC, are contributing factors to the anticipated growth in business travel and bleisure.
Saudi Arabia’s strategic focus on India
Recognising the immense potential of India as a top source market, the Saudi Tourism Authority (STA) has been proactive in its engagement with Indian travel trade professionals.
Alhasan Aldabbagh, President of APAC Markets at STA, underscored the importance of the Indian market, stating, “As we continue to diversify our offerings, India has proved to be a major accelerator. We are committed to making India the top source market.” To facilitate this, Saudi Arabia has simplified its visa procedures for Indian travellers, introducing options such as e-visas and visa-on-arrival, making it easier than ever for Indians to explore the Kingdom’s rich cultural and historical offerings.
As part of its outreach strategy in India, the Saudi Tourism Authority recently held networking events in key cities such as Mumbai, Ahmedabad, Bengaluru, and Delhi. These events facilitated meaningful interactions with travel trade associations, tour operators, and event planners, laying the groundwork for future collaborations. During these events, the STA signed agreements with several tour operators and travel trade associations, further cementing its commitment to making Saudi Arabia a top destination for Indian travellers.
The role of ITB India 2024 in Saudi Arabia’s tourism strategy
Saudi Arabia’s participation in ITB India 2024 is a crucial component of its broader strategy to grow tourism from this nation. Scheduled to take place from 11 to 13 September at the Jio World Convention Centre in Mumbai, ITB India is one of the most significant B2B trade shows in the region, connecting international exhibitors with key players in the Indian travel market. With over 400 exhibitors, 120 speakers, and 600 buyers expected to attend, the event provides an unparalleled platform for forging strategic partnerships and driving business growth.
The ITB India 2024 Conference will delve into the latest trends and challenges shaping the South Asian travel market, with sessions led by industry heavyweights from Agoda, BCD Meetings & Events, Booking.com, and Thomas Cook India Limited, among others. The conference theme, “Future-Ready Travel: Embracing Innovation, Sustainability, and Global Connectivity,” aligns perfectly with Saudi Arabia’s vision to position itself as a global leader in tourism.
Joyce Wang, Executive Director of Messe Berlin Asia Pacific, the organiser of ITB India, highlighted the event’s significance, noting, “With 80% of attendees being decision-makers, ITB India 2024 provides an unparalleled platform to forge strategic partnerships and drive business growth in one of the world’s fastest-growing travel markets. ITB India 2024 is poised to be the largest edition to date.”
ITB India serves as a gateway to the Indian travel market, providing Saudi Arabia with a platform to showcase its unique offerings to a highly targeted audience of industry professionals. Given the rapid growth of India’s outbound travel market, which is expected to surpass 80 million travellers by 2040, engaging with this market is crucial for Saudi Arabia’s tourism ambitions. The event will also allow Saudi stakeholders to network with Indian travel agents, tour operators, and media, providing insights into the Kingdom’s tourism options, including the 17,000 events Saudi will be hosting, such as the Riyadh Season, Jeddah Season, and Diriyah Season.
The STA’s delegation at ITB India 2024 will include representatives from various sectors, including destination management organisations (DMOs) like Red Sea Global and AlUla, DMCs, hotels, tour operators, and airlines. This diverse representation underscores Saudi Arabia’s holistic approach to tourism, offering a wide array of experiences from luxury resorts and UNESCO World Heritage sites to adventure sports and cultural events.
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Photo – top of page – Martin Adams
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Read also: Tourism Ministry releases official 2023 statistics: Bahrain & Egypt top source markets
