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UN Tourism Applauds Saudi Arabia's Historic Milestone of 100 Million Tourists

• All Regions
• 26 Feb 2024

In a testament to its strategic vision and robust sector growth, the Kingdom of Saudi Arabia has welcomed over 100 million tourists, marking a significant milestone in its journey to become a global tourism powerhouse.

In an exceptional achievement, the Kingdom of Saudi Arabia has welcomed over 100 million tourists , a milestone celebrated by the World Tourism Organization (UN Tourism). This remarkable accomplishment achieved seven years ahead of its original schedule, not only underscores Saudi Arabia's emergence as a global tourism powerhouse but also highlights its leading role in the economic diversification and sustainable development of the tourism sector worldwide. This milestone, marked by the arrival of over 27 million international tourists and over 79 million domestic tourists with a combined total spend of over USD 67 billion, not only showcases the Kingdom's robust tourism sector but also underscores the Saudi Ministry of Tourism's commitment to advanced data gathering and statistical analysis, a priority echoed by UN Tourism.

The Kingdom's success story is built on a foundation of strategic initiatives and reforms that have propelled its tourism sector to new heights. With a staggering 390% increase in demand for tourism activity licenses in 2023 and the contribution of tourism to the non-oil GVA estimated to exceed 7%, Saudi Arabia's vision for the future is clear. With the tourism sector's direct contribution to the GDP estimated to exceed  4 %, the country has showcased its resilience, innovation, and commitment to excellence.

Strategic Partnerships and Global Leadership

UN Tourism has closely collaborated with Saudi Arabia, recognizing its efforts in developing a robust tourism infrastructure and statistical analysis capabilities. The inauguration of UN Tourism's Regional Office for the Middle East in Riyadh in 2021 marked a significant step towards fostering tourism innovation, education, and rural development. This partnership has been instrumental in positioning Saudi Arabia as a leader in sustainable tourism practices and statistical excellence.

Elevating its global position in the tourism sector, Saudi Arabia has distinguished itself by leading the G20 in international tourist growth rate in 2023 compared to 2019. This recognition underlines the Kingdom's pivotal role in the global tourism sector's recovery following the pandemic. Moreover, the Middle East has emerged as the sole region not only to rebound but also to outpace pre-pandemic tourism levels , with a 122 percent recovery in international tourist arrivals in 2023 compared to 2019. At the forefront of this remarkable growth, Saudi Arabia witnessed a staggering 156 percent recovery in international tourist arrivals compared to 2019, underscoring its central role in the region's tourism boom.

A Testament to Resilience and Innovation

The Kingdom's tourism sector has shown remarkable resilience, with inbound spending reaching over USD 37 billion in 2023 and a significant increase in hotel keys across the kingdom. These achievements are a testament to Saudi Arabia's commitment to creating a prosperous and sustainable tourism sector.

Empowering the Workforce

The employment opportunities created by the tourism sector are a cornerstone of Saudi Arabia's success. As of 2023, with 925.5 thousand jobs in the tourism sector and significant investments in training, the Kingdom is on track to make tourism the second-largest employer by 2030. This focus on workforce development ensures that the benefits of tourism growth are shared widely and sustainably.

Gratitude and Future Vision

UN Tourism extends its congratulations to the Kingdom of Saudi Arabia for this historic achievement. We commend the leadership, the Ministry of Tourism, and all partners for their unwavering support and dedication. As Saudi Arabia continues to drive towards its goal of 150 million tourists by 2030, UN Tourism looks forward to supporting its journey, celebrating its successes, and promoting a more resilient, sustainable, and inclusive future for global tourism.

Saudi Arabia's achievement of welcoming over 100 million tourists in 2023 is a beacon of what is possible through collaboration, innovation, and a clear vision for the future. The Kingdom not only promises a diverse and rich tourism experience but delivers on that promise, paving the way for a brighter future for the global tourism industry.

Related links:

• Download the News Release on PDF
• International Tourism to Reach Pre-Pandemic Levels in 2024

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Since the launch of Vision 2030, Saudi Arabia is more open than ever before welcoming people from around the globe. With the introduction of the e-visa in 2019, millions of visitors have been drawn to the Kingdom, which has helped in creating jobs and driving local economic growth. To further promote the country as a tourist destination, initiatives in the areas of archaeology, culture, education, and the arts are being undertaken to preserve the Kingdom's rich heritage and natural beauty, while opening it up to the world. Major events like the Red Sea International Film Festival and the Saudi Arabian Grand Prix are attracting visitors and showcasing the Kingdom's warm hospitality. Additionally, as a central location in the Arab and Islamic world, Saudi Arabia is enhancing its facilities and services to provide pilgrims with an unforgettable spiritual experience. As it welcomes the world to come and experience its unique offering, the Kingdom's breathtaking beauty and rich heritage make it a must-visit destination.

His Royal Highness Prince Mohammed bin Salman bin Abdulaziz

Crown Prince, Prime Minister, & Chairman of the Council of Economics and Development Affairs

Vision 2030 has enabled an economic transformation that has in turn driven a cultural transformation in Saudi Arabia. Through the digital economy and new sectors like tourism, gaming, entertainment, and culture, we are connecting the Saudi people to the world, and the world with Saudi Arabia.

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Saudi Arabia approves new tourism law to boost investments in the sector

The legislation is intended to help attract more visitors and make it easier doing business in the industry.

An ancient Nabataean carved tomb at the archaeological site in AlUla. Saudi Arabia is developing a number of major tourism projects. AFP

Saudi Arabia has approved a new law to boost the development of the tourism sector in the Arab world’s largest economy, attract more investment in the sector and increase visitor numbers.

This is part of efforts by the Saudi government to diversify the country's economy away from oil.

The new tourism law, approved by a resolution passed by the Council of Ministers this week, will establish a new regulatory environment to “attract tourism innovators and improve ease of doing business” in the kingdom, the Saudi Press Agency reported on Wednesday.

It will also streamline the licensing processes and procedures by creating a one-stop-shop platform for all tourism stakeholders as well as allow “new or experimental tourism businesses to receive special licences” to operate in the country.

The new tourism law will “drive business and investment, support innovation and attract tourists, in line with international best practices”, Saudi Arabia’s Tourism Minister Ahmed Al Khateeb, said.

“This law follows the kingdom’s recent announcement of the Regional Tourism Development Councils Regulation, a major milestone in advancing Saudi Arabia’s National Tourism Strategy,” Mr Al Khateeb said.

“The regulation will accelerate the development of tourist destinations in the various regions, including Neom, Al Soudah, the Red Sea and Diriyah Gate.”

Saudi Arabia is developing a number of tourism projects as it seeks to raise the economic contribution of the tourism sector from 3 per cent of gross domestic product to 10 per cent by 2030.

These include Neom, a $500 billion futuristic city comprising a nature reserve, coral reefs and heritage sites on a number of islands along the Red Sea, and Diriyah Gate, a seven-square-kilometre site with the At-Turaif Unesco World Heritage Site at its core.

The Red Sea Development Company — which is owned by the kingdom’s Public Investment Fund — is also building a mega-tourism project along the Red Sea coast, with 16 hotels across five islands and two inland sites as part of the first phase.

The Council of Ministers also approved a resolution that “empowers the ministry of tourism to enable sector growth”, SPA reported.

It allows the ministry to give tax and custom exceptions or reductions with related government entities, creating incentives for businesses to invest in the tourism sector.

“This new framework for collaboration with the private sector and relevant government entities will improve the quality of services in the tourism sector and promote Saudi Arabia as a top five global destination,” the report said.

“It will accelerate achieving the goals set by the kingdom’s National Tourism Strategy and Vision 2030, including 100 million new visits, tourism’s 10 per cent GDP contribution and 1 million new tourism jobs.”

Saudi Arabia's economy recovered in 2021 from the coronavirus-induced slowdown, with economic activity picking up momentum this year as oil prices rose.

Output grew 11.8 per cent in the second quarter of this year, on the back of higher oil prices and rising oil-related activities, according to flash estimates released by the General Authority for Statistics.

Saudi Arabia's travel and tourism sector will grow an average of 11 per cent annually over the next decade, making it the Middle East's fastest-growing market, the World Travel and Tourism Council said in a recent report.

By 2032, the sector’s contribution to Saudi Arabia's GDP could reach nearly 635bn Saudi riyals ($169bn), representing 17.1 per cent of the kingdom's total economy, it said.

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Saudi megaprojects 2022

The site of the $500bn Neom project in the Tabuk Province of northwestern Saudi Arabia. Photo: SCTH

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Minister Al-Khateeb: Saudi Arabia set to change global tourism map with highest investments worth $800 billion

Saudi Gazette Report

MUSCAT — Saudi Minister of Tourism and Chairman of the Executive Council of the UN Tourism Ahmed Al-Khateeb said that Saudi Arabia is investing $800 billion to establish tourism projects and destinations.

“This will be the highest number of tourism investments in the world,” he said while emphasizing that Saudi Arabia will change the global tourism map. “The opportunities and facilities that we provide to investors will make the tourism sector more attractive, and we are proceeding in a distinctive way in building the sector,” he said.

The minister made the remarks while addressing the conference under the theme “Investing in tourism : opportunities and challenges in sustainable financing,” which is being held on the sidelines of the 50th UN Tourism Regional Commission for the Middle East in the Oman capital Muscat.

He said that Saudi Arabia aims to add more than 250,000 rooms in the tourism hospitality sector over the coming years, and this represents an addition to tourism in the region. He stressed that Saudi Arabia has begun to develop the tourism sector as part of the Saudi Vision 2030. “The development efforts have succeeded in raising the sector’s contribution from three percent of the Saudi economy to 4.5 percent by the end of last year, and this aims to reach the sector’s contribution to 10 percent by the year 2030.”

Attracting and qualifying the national human resources are two important factors for developing the tourism sector in the region, Al-Khateeb said while stressing that the Saudi Ministry of Tourism pays great attention to the issue of qualifying national cadres working in the sector, and is working to attract young Saudi men and women to this vital sector.

Al-Khateeb said that Saudi Arabia is working, in cooperation with the member states of the UN Tourism in the Middle East region, to develop the tourism sector in the region because of its global importance. “The countries of the region have all the requirements for successful investment in the tourism sector,” he drew attention to the fact that the Middle East region has great potential and natural resources that enable it to be one of the most important tourist destinations in the world, and it provides everything that the global tourist is looking for.

The minister said that the countries of the region are moving as a single bloc in the right direction with regard to developing the tourism sector, as they have begun developing plans and strategies to benefit from the promising sector

Saudi Arabia's New Tourism Development Fund

The Situation : On June 21, 2020, the Saudi Minister of Tourism, Ahmed Al-Khateeb, announced the creation of a Tourism Development Fund ("Fund") with an initial capital of SAR 15 billion (approximately US$4 billion).

The Goal : The National Transformation Program ("NTP") aims at, among other things, marketing Saudi Arabia as a tourist destination regionally and globally.

Looking Ahead : The Fund is likely to play an important role in attracting and supporting investments, encouraging the development of the Saudi tourism sector, and overcoming some of the challenges it faces.

Saudi Arabia's Vision2030 is a strategic framework to reduce Saudi Arabia's dependence on oil, diversify its economy, and develop public service sectors, including tourism. Under Vision2030, the NTP, a coordinating unit involving 24 Saudi government entities, aims to develop the government capacity and capabilities required to establish the necessary legal and physical infrastructure to achieve Vision2030's goals.

In the context of the Saudi tourism sector, the NTP aims at marketing Saudi Arabia as a tourist destination regionally and globally through the development of advanced infrastructure, the preparation of the necessary regulations and legislation, and the building of institutional capacities, all of which should contribute to creating jobs and increasing the contribution of the tourism sector to the Kingdom's economy. But the NTP recognizes that the development of the Saudi tourism sector faces a number of challenges, including:

• The lack of diverse tourist destinations and services in the Kingdom and the disparity in their qualities;
• The need to increase tourist infrastructure readiness, such as transportation and hotels, to meet the needs of different segments;
• The tourism sector's inability to meet the increasing demand for tourism services; and
• Inadequate infrastructure of a number of national heritage sites to accommodate tourists.

The Tourism Development Fund

Preliminary Comments . The Tourism Development Fund Law ("Law") provides in part that the Law will not come into force until 90 days after the Law's publication in the Saudi Arabian Official Gazette. The Law was published on June 26, 2020, and therefore came into force on September 23, 2020.

Investment, Financing, and Advice . The authority of the Fund includes (but is not limited to) the authority to invest its funds in assets, to provide financing to businesses operating in the tourism sector or related sectors, and to provide advice to businesses operating in the tourism sector or related sectors.

• Investment . The Law gives the Fund the authority invest in, own, and dispose of assets; to invest in securities; and to contribute to the development of tourist areas, either on its own or in partnership with the public or the private sector. The Fund therefore has the authority and the means to act by itself or in cooperation with others to invest in projects to address any of the challenges facing the Saudi tourism sector as identified by the NTP.
• Financing . The Law gives the Fund the authority to provide financing to businesses operating in the tourism sector, operating in fields supporting the tourism sector, or developing technology and infrastructure that serves different tourist activities, in each case subject to controls set by the Fund's Board of Directors as headed by the Minister of Tourism ("Board").

The Board is the authority responsible for establishing the Fund's policies. Until such policies are established, the terms upon which the Fund may provide financing will remain unknown. However, we would speculate (and this is only speculation) that the Fund will be to the Saudi tourism industry what the Saudi Industrial Development Fund is to Saudi industry: a source of medium- and long-term soft loans whose terms will vary with the location and the size of the project being financed.

• Advice . The Law gives the Fund the authority to provide consulting services to businesses operating in the tourism sector, operating in fields supporting the tourism sector, or developing technology and infrastructure that serves different tourist activities. While the terms upon which such consulting services will be provided are currently unknown, it seems likely that such consulting services will be provided on a commercial basis, given that the Law provides that funding for the Fund will come from (among other sources) the financial consideration received for the services and works it provides.

Tourism is a key driver of Vision2030, and the Fund can reasonably be expected to play an important role in attracting and supporting investments, incentivizing the development of, and overcoming some of the challenges facing the Saudi tourism sector. Businesses (whether domestic or international) involved in the tourism sector or related sectors should closely follow the development of the Fund.

Two Key Takeaways

• Saudi Arabia's National Transformation Program seeks (among other things) to market Saudi Arabia as a regional and global tourist destination but recognizes that the development of the Saudi tourism sector faces a number of challenges.
• The newly established Saudi Tourism Development Fund has been created and endowed with approximately US$4 billion to invest in the Saudi tourism sector and to provide financing and advice for businesses operating in or related to the Saudi tourism sector, all with the goal of developing the Saudi tourism sector.

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Introducing the New Season of Skift Travel Spotlight Podcast

Saudi Tourism Authority + Skift

June 3rd, 2024 at 11:45 AM EDT

Saudi Arabia’s tourism plans are nothing if not bold. In the latest season of this limited-series podcast, Skift explores how innovative ideas in design, experience, and sustainability are shaping the Kingdom’s development.

Saudi Tourism Authority

This sponsored content was created in collaboration with a Skift partner.

Saudi Arabia is working towards an ambitious tourism goal of welcoming 150 million visitors by 2030. Having already crossed the significant milestone of 100 million international and domestic tourists in 2023, the Kingdom is continuing its strategic focus on creating a destination that is intentional, sustainable, and innovative across the entire travel ecosystem.

This focus is reflected in its giga-projects – from NEOM’s futuristic vision, to Red Sea Global’s sustainable development, to Al-Ula’s blending of culture, history, and luxury.

In the latest installment of the limited mini-series podcast, Skift Travel Spotlight: The Future of Tourism in Saudi Arabia, Skift explores how Saudi Arabia’s approach reflects a broader industry shift towards innovation – one in which constant evolution, daring to try new things, and co-creating experiences with partners and travelers are paramount.

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In this Podcast:

• An insider view on the unique design ethos shaping luxury in the Kingdom
• Innovative partnerships shaping distribution in Saudi Arabia
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• How technology is impacting the traveler experience

This content was created collaboratively by Saudi Tourism Authority and Skift’s branded content studio, SkiftX .

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Tags: innovation , podcast , saudi arabia

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28 September ‎ 2021 | TDF in the News

Saudi tourism development fund signs financing agreements to develop jeddah projects.

Saudi Arabia's Tourism Development Fund (TDF) signed two financing agreements with Dallah Al-Baraka Group and Dallah Real Estate Company, to develop a tourism project at the Durrat Al-Arous resort in Jeddah, accordign to an emailed statement.

Saudi Arabia’s Tourism Development Fund signed two financing agreements with Dallah Al-Baraka Group and Dallah Real Estate Company, to develop a tourism project at the Durrat Al-Arous resort in Jeddah, accordign to an emailed statement.

Under the deal, the tourism fund provide funds for the development of “Durrat Lagoon,” which will be operated by Hotel Indigo.

“The financing and support services provided by the Tourism Development Fund contribute significantly to enhancing the experiences of investors and the value of their projects, as well as boosting the Kingdom’s ability to attract tourists from around the world,” Mohiuddin Saleh Kamel, vice chairman of Dallah Al-Baraka Group, said.

The second agreement was signed with 17Sixty to provide a variety of recreational activities enabling visitors of Durrat Al-Arous resort to safely explore the depths of the Red Sea.

“TDF is focused on providing innovative solutions that link investors to the abundant opportunities in the Saudi tourism sector, contributing to achieving the objectives of the National Tourism Strategy and consolidating the Kingdom’s position as a tourist destination that attracts visitors from all over the world,” the fund’s CEO, Qusai Al-Fakhri, said.

18 May ‎ 2023 | TDF in the News

Saudi tourism development fund collaborates with hyatt to develop hospitality focused destinations in saudi arabia.

Expanding its roster of collaborators, the Tourism Development Fund (TDF) has announced the signing of a Memorandum of Understanding with an affiliate of Hyatt Hotels Corporation to establish luxury hotels across the Kingdom of Saudi Arabia.

17 May ‎ 2023 | TDF in the News

Tdf announces partnership with radisson hotel group to develop several hotels and resorts across saudi arabia.

The Tourism Development Fund (TDF) has announced the signing of a Memorandum of Understanding (MoU) with the Radisson Hotel Group to develop hospitality and tourism projects across the Kingdom of Saudi Arabia. The first project under this memorandum is expected to be announced in H2 of 2023.

16 May ‎ 2023 | TDF in the News

Saudi tourism development fund announces future partnership with minor hotels to develop multiple hospitality projects across ksa.

Saudi Arabia’s Tourism Development Fund (TDF) announces the signing of a memorandum of understanding (MoU) with MINOR Hotels, a hotel owner, operator, and investor. The MoU aims to jointly develop and operate high-quality hospitality and lifestyle projects focused on mountain resorts, wellness resorts, and urban hotels within the Kingdom. The first project under this partnership is expected to be announced in the second half of 2023.

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Saudi Arabia, or how to tap into huge project opportunities in the infrastructure space

The Kingdom of Saudi Arabia has always been known as one of the world's top oil producers. Since 2016 and the launch of its Vision 2030, the country has focused on diversifying its economic base. The development of sectors such as renewable energy, technology, infrastructure, entertainment, tourism and hospitality is a priority. Find out how Swiss companies can participate in these large projects in our report below.

Major infrastructure projects play an important role in the implementation of Vision 2030. Saudi Arabia is currently the largest project market in the MENA region, with approximately USD 1.81 trillion worth of projects planned or underway, of which USD 1.5 trillion are yet to be awarded.

Our report provides an overview of the Saudi infrastructure sector in general and informs about specific opportunities in three selected sectors, namely transport, clean energy and (waste) water. These are the sectors in which Swiss expertise is well established, but not yet very present in this part of the world.

• Transportation: Whether for existing cities (Riyadh, Jeddah, Medina) or new ones under construction (such as Neom or Oxagon), the communication channels between them, such as roads, tunnels, bridges, together with the railway network (urban or intercity), are crucial for their development. The total value of planned projects not yet awarded in the railways, airports, bridges/causeways and railways subsectors is USD 97 billion, with 35.5% still in the design and study phase.
• Clean energy: With a commitment to generate 50% of its energy consumption from renewable sources by 2030, Saudi Arabia has already launched major clean power projects, mainly solar and wind farms. The total value of planned but not yet awarded projects in the solar, substation & control center, and cabling sub-sectors amounts to USD 40 billion, with 63% still in the design & study phase.
• (Waste) water:  Trying to balance a 7% annual growth in water consumption with general water scarcity, Saudi Arabia has increased investment in innovative desalination methods and wastewater treatment plants. At the same time, demand for supply networks and cooling is growing. The total value of planned and unawarded projects in the desalination, supply, treatment and cooling sub-sectors is USD 37.5 billion, with 24.7% still in the design & study phase.

 The large infrastructure projects in Saudi Arabia offer numerous opportunities for Swiss companies to sell their technologically advanced and environmentally friendly products, which are well known for their innovative approach and high quality. Already today, Switzerland ranks among the top ten export partners of the Kingdom.

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• Release: April 2024
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• Author: Riad Bestani, Angelica Schempp

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