The Saudi Ministry of Tourism highlighted the vast potential for international investors to capitalise on the kingdom’s rapidly expanding and diverse tourism sector, at the IHIF Asia International Hospitality Investment Forum (September 9-11) that is underway in Hong Kong.

A highlight of Saudi Arabia’s participation at IHIF Asia was the panel discussion titled "Invest, Enable, Prosper: Empowering Tourism Destinations”.

This fireside chat, led by Tareq Al-Shaghrood, General Manager of Investment Planning & Attraction at the Saudi Ministry of Tourism, presented the kingdom's strategic approach to developing a world-class, diverse tourism ecosystem.

"Saudi Arabia's commitment to creating a wide array of tourism experiences— from cultural heritage and adventure tourism to luxury and eco-tourism — is underpinned by a robust framework of incentives and support for investors,” he said.

“Our vision is to enable and empower those who join us in this transformative journey, ensuring prosperity for all stakeholders.”

Saudi Arabia’s strategic location at the crossroads of three continents and its strong economic ties with Asia underscore its potential as a global tourism hub, a statement said.

In 2023, the kingdom welcomed over 20.9 million tourists from Asia, who collectively spent $25.7 billion. This significant surge highlighted the increasing confidence Asian markets have in Saudi Arabia’s tourism potential and the lucrative opportunities it presents for investors.

The kingdom's appeal to Asian travellers is further evidenced by the substantial growth in tourism receipts, reflecting the strong demand for Saudi Arabia as a diverse and culturally rich destination.

To capitalise on this momentum, the kingdom has introduced the Tourism Investment Enablers Program (TIEP), with the Hospitality Investment Enablers (HIE) initiative serving as a cornerstone.

HIE is designed to significantly boost accommodation capacity in key tourism areas, driving private investments up to $11 billion and increasing the annual GDP by $4.3 billion by 2030.

The initiative also aims to create 120,000 new jobs, supporting Saudi Arabia’s broader economic diversification goals.

Key incentives include corporate tax exemptions, VAT reductions, and access to government-owned land under favourable terms, making it easier and more cost-effective for investors to enter the market.

Saudi Arabia's international tourism performance in 2023 was impressive, ranking 14th globally in international arrivals — an improvement of 11 positions since 2019. The kingdom also ranked 12th globally in international tourism receipts, moving up 15 positions compared to 2019.

According to the UN Tourism Barometer (May 2024), Saudi Arabia ranked first among the best-performing large tourism destinations in terms of the growth rate of international arrivals and tourism receipts compared to pre-pandemic levels. – TradeArabia News Service