The Saudi Red Sea Authority (SRSA) recently announced that it granted the first six licenses for tourist yacht agents in Saudi Arabia as part of the authority’s efforts to develop a thriving coastal tourism sector. The initiative underscores the authority’s commitment to regulating maritime and tourist activities and creating an inviting environment for tourists, investors, and industry professionals in the Red Sea as a leading global destination, in line with Saudi Vision 2030.
The list of licensed tourist agents includes both national and international companies: Faisal M. Higgi & Associates Co. Ltd., Yusuf bin Ahmed Kanoo, HASCO Group, Hill Robinson, JLS Yachts LLC, and GAC.
Facilitating coastal tourism growth
The issuance of these licenses for coastal and maritime tourism activities in Saudi Arabia is a key part of the authority’s mandate. Hence, it aims to promote investments, identify infrastructure needs, and safeguard the marine environment within the Kingdom’s borders. By pursuing these objectives, the authority aims to cultivate a dynamic coastal tourism sector that contributes to realizing the goals of Vision 2030.
Through this recent development, Saudi Arabia also seeks to streamline access and departure procedures at tourist marinas and ports, oversee tourist logistics, and facilitate customs processes. The licenses signify a major leap in the advancement of coastal tourism in Saudi Arabia.
According to the World Economic Forum, coastal and marine tourism represented at least 50 percent of total global tourism in 2023. It is a $9.5 trillion revenue industry that generates every 1 in 11 jobs. Indeed, for many small island developing states, it is their largest economic sector. Therefore, Saudi Arabia’s efforts in bolstering its coastal tourism, which is part of its larger surging tourism sector, will play a key role in its economic advancement and diversification efforts.
Read: Saudi Arabia launches new destinations, bold innovations at World Travel Market 2024
Saudi Arabia’s tourism growth
Saudi Arabia’s Ministry of Tourism recently announced that the number of licensed tourism hospitality establishments across the Kingdom has surpassed 3,950 by the end of the third quarter of 2024, achieving a remarkable growth rate of 99 percent compared to the same timeframe in 2023.
According to the ministry, the total number of licensed rooms has exceeded 443,000 by the end of Q3 2024, marking a significant increase of 107 percent from the previous year, when there were over 214,000 rooms. In Q3 2023, the count of licensed hospitality facilities stood at approximately 2,000.
In 2023, Saudi Arabia welcomed a record 27.4 million inbound tourists, reflecting a 65 percent increase over the previous year, with total spending rising by 44 percent. This growth trend continued this year. During the first half of 2024, tourism spending in Saudi Arabia reached around SAR150 billion ($40 billion), indicating a 10 percent annual increase in both the number of travelers and their expenditures, as revealed by minister Ahmed Al-Khateeb in July 2024.
Saudi Arabia has set an ambitious goal of welcoming 150 million tourists annually by 2030, emphasizing its commitment to establishing itself as a premier global tourism destination. Therefore, its efforts in growing its coastal tourism sector align with its ambitious target.
The expansion of the tourism sector has also been bolstered by a 17 percent increase in passenger air traffic, reaching 62 million in the first half of 2024, compared to 53 million during the same period the previous year. This growth was further supported by a 12 percent rise in the number of flights, totaling 446,000 as opposed to 399,000 in the first half of 2023.
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