Tourism Sector Plays Crucial Role In Economic Diversity And Job Creation In Saudi Arabia

Minister of Tourism Ahmed Al-Khateeb emphasised the potential of Saudi Arabia's tourism sector to generate employment across the country. He highlighted the Kingdom's diverse tourist attractions and facilities as key assets. These remarks were made during a panel discussion titled "Future Directions for Local Content Under Saudi Vision" at the Local Content Forum 2024 in Riyadh.

The tourism sector is crucial for economic diversity and sustainability, aligning with Saudi Vision 2030, according to Al-Khateeb. The sector's contribution to the gross domestic product (GDP) has risen from 3% in 2019 to 5% in 2023. The Kingdom aims to increase this figure to 10% in the coming years, matching the global average.

Al-Khateeb noted that tourism has significantly boosted job localization, increasing from 3% in 2019 to 10%, aligning with international standards. This growth reflects the sector's role in supporting economic development and job creation within Saudi Arabia.

Major tourist cities like NEOM, the Red Sea, Qiddiya, and Diriyah are under construction, alongside private-sector projects such as The Avenues. These initiatives represent investments exceeding US$500 billion over the next 15 years, showcasing the Kingdom's commitment to expanding its tourism infrastructure.

The minister stressed the importance of localizing investments across design, execution, and operation phases. This approach ensures that local talent and resources are utilised effectively within these projects. Al-Khateeb mentioned that some projects have achieved a localization rate of up to 50%, including developments at the Red Sea.

The Ministry of Tourism allocates US$100 million annually for training programs aimed at equipping 100,000 citizens with necessary skills. This initiative includes both men and women, reflecting a commitment to inclusive workforce development within the tourism sector.

Saudi Arabia's strategic focus on tourism is evident through its ambitious plans and substantial investments. By enhancing local content and fostering job creation, the Kingdom aims to position itself as a leading global tourist destination while ensuring sustainable economic growth.

With inputs from SPA