Saudi Arabia Unveils Tourism Sector Investment Opportunities At IHIF Asia

The Ministry of Tourism showcased the Kingdom's tourism sector at the International Hospitality Investment Forum (IHIF Asia) in Hong Kong from September 9 to 11. The event aimed to attract international investors by highlighting various investment opportunities within Saudi Arabia's tourism industry.

Saudi Arabia's tourism sector has seen remarkable growth, with over 109 million tourists visiting in 2023. This figure includes 27 million international tourists and more than 20.9 million visitors from Asia, who collectively spent $25.7 billion.

Tareq Al-Shaghrood, General Manager of Investment Planning and Attraction at the Saudi Ministry of Tourism, participated in a panel discussion titled "Invest, Enable, Prosper: Empowering Tourism Destinations." He outlined the Kingdom's strategic approach to developing a diverse tourism ecosystem.

Al-Shaghrood emphasized that Saudi Arabia is committed to offering a wide range of tourism experiences. These include cultural heritage, adventure tourism, luxury options, and eco-tourism. The Kingdom supports these initiatives with a robust framework of incentives for investors.

The Tourism Investment Enablers Program was introduced to facilitate business operations within the Saudi tourism sector. As part of this program, the Hospitality Investment Enablers initiative offers numerous opportunities for investors to develop hospitality facilities across the Kingdom.

This initiative aims to significantly increase accommodation capacity in key tourism areas. It is expected to drive private investments up to $11 billion and boost annual GDP by $4.3 billion by 2030. Additionally, it aims to create 120,000 new jobs, supporting broader economic diversification goals.

Incentives for Investors

The initiative introduces several key incentives such as corporate tax exemptions and VAT reductions. Investors also gain access to government-owned land under favorable terms, making market entry easier and more cost-effective.

At the forum, the ministry encouraged investors to capitalize on the significant developments in Saudi Arabia's tourism sector. The Kingdom's potential lies in its robust infrastructure, strategic location, and commitment to sustainable growth.

Global Rankings and Achievements

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

The UN Tourism Barometer for May 2024 highlighted Saudi Arabia as the top-performing large tourism destination regarding growth rates in international arrivals and tourism receipts compared to pre-pandemic levels.

The Ministry of Tourism's participation at IHIF Asia underscores its efforts to attract global investments and further enhance the Kingdom's burgeoning tourism sector.

With inputs from SPA