Saudi Arabia is launching a significant new initiative to boost its hospitality sector, aiming to create 120,000 jobs in tourism and attract roughly $11.2 billion in investment. The Kingdom’s Minister of Tourism Ahmed bin Aqeel Al Khateeb has introduced the Tourism Investment Enablers Program, which is designed to facilitate business practices and make the country more attractive to both local and international investors. Working in collaboration with the Ministry of Investment, the Ministry of Tourism has also announced the Hospitality Sector Investment Enablers Initiative as part of this ambitious program.
Introducing the Tourism Investment Enablers Program (TIEP) designed to support local and international investors in the tourism sector, attract investment and make doing business more seamless#AmbitionandProsperity pic.twitter.com/XPVkWArEmi
— وزارة السياØØ© (@Saudi_MT) March 4, 2024
Projected revenues and contribution to GDP by 2030
The initiative‘s main goal is to expand and diversify tourism offerings, increasing the capacity of hospitality facilities in specific tourist destinations throughout Saudi Arabia. It aims to attract investments worth approximately SAR42 billion (approximately $11.2 billion) in the hospitality sector, with projected revenues of about SAR16 billion ($4.26 billion) contributing to the country’s GDP by 2030.
Al Khateeb also expressed that Saudi Arabia possesses rich and diverse tourism resources, making its tourism industry appealing on a global scale. He emphasized that the country’s Vision 2030 outlines the roadmap for becoming a sought-after global destination, recognizing the tourism sector as a key driver of the national economy. Al Khateeb also highlighted the significant increase in demand for tourism activity licenses in the past year, indicating the Kingdom’s substantial investment in the tourism sector over the next decade. This investment will provide opportunities and a favorable investment environment for both local and international investors.
Enablers for cost and ease of doing business
The initiative further encompasses various enablers strategically designed to improve the cost and ease of doing business. These measures include facilitating access to government lands under favorable conditions, streamlining project development processes, addressing investor challenges, and developing laws to reduce operational costs, all aimed at fostering growth in the tourism industry. The initiative is expected to have numerous social and economic benefits, including the creation of approximately 42,000 new hotel rooms and around 120,000 job opportunities in targeted destinations by 2030. This will have a positive impact on talent development and support efforts to increase local employment.
For more news on hospitality & tourism, click here.
