Visa’s Regional General Manager for Saudi Arabia, Bahrain, and Oman, Ali Bailoun speaks to Economy Middle East on how the global digital payments company is supporting Saudi Arabia’s ambitious tourism plans and enabling consumers to make the most of their travel experience.
Could you explain the Tourism Data Lab and how it aligns with Visa’s strategy in Saudi Arabia, especially when it comes to supporting Saudi Vision 2030 and its tourism goals?
The Tourism Data Lab is a pioneering initiative launched by Visa and the Saudi Tourism Authority (STA) to support Saudi Arabia’s tourism sector. This first-of-its-kind platform in the region offers data-driven insights that are essential for optimizing tourism strategies and enhancing the visitor experience.
Leveraging VisaNet, the world’s largest payments database, the Lab provides detailed analytics on visitor journeys, spending behaviors, and digital adoption. This comprehensive data enables STA to make informed decisions on promotional campaigns and strategic initiatives. VisaNet also offers extensive insights into incoming tourism, helping optimize cashless strategies by detailing visitor journeys, spending patterns, seasonality, digital adoption, and customer types. This holistic view supports the creation of customer-centric payment experiences.
What challenges and opportunities do you foresee given that this is the first platform of its kind in the region?
As with any new endeavor, the main challenge is having limited previous experience. However, we are confident in our capabilities, the support from our partners, and the potential of the market. We believe this initiative will not only succeed but also serve as a model for future implementations in other markets. In fact, we are already receiving interest from tourism partners in other regions eager to develop similar data-driven solutions.
One of the key opportunities presented by the Lab is its potential to further refine and personalize even more promotional campaigns and strategic cashless initiatives aimed at driving inbound tourism. For instance, Visa’s 2023 Global Travel Intentions study reveals that more consumers globally view digital payments as integral to a secure and rewarding travel experience. By leveraging insights like this, the Lab can help develop targeted offers and programs that will enrich the experience of visitors to the Kingdom.
How do you envision the partnership with the Saudi Tourism Authority in the long run, and what future initiatives might Visa pursue to further boost tourism in Saudi Arabia?
At Visa, we recognize the integral role of tourism in supporting Saudi Arabia’s economic diversification agenda. Traditionally recognized for religious tourism, Saudi Arabia is leveraging its wealth of natural, historical, religious, and cultural attractions to become a major global business and leisure destination under its ambitious Vision 2030 economic diversification plan. Travel and tourism contributed about 6.5 percent of the local GDP in 2022 and are forecast to reach about SAR635 billion by 2032. The sector has seen a significant surge, with international visitor spending increasing by nearly 57 percent to SAR227.4 billion, surpassing the previous record by SAR93.6 billion. Additionally, the growth in domestic visitor spending has grown by 21.5 percent highlighting the sector’s importance to the nation’s economy.
Visa’s partnership with the STA exemplifies our broader vision to support tourism in Saudi Arabia. By leveraging Visa’s pioneering digital capabilities and forming strategic partnerships, we aim to help consumers get the most out of their travel experience and support local governments in boosting inbound travel.
Digital capabilities and secure travel solutions are significant factors behind this impressive growth. According to Visa’s 2023 Global Travel Intentions study, digital payments are central to tourists’ travel expectations and preferences. To build on this momentum and address the increasing demand for seamless, secure, and rewarding travel experiences, Visa will continue to offer innovative and reliable payment solutions. These priorities will be integral to Visa’s partnerships in the future, ensuring that we remain at the forefront of enhancing travel experiences and supporting economic progress in the region.
How is digital transformation influencing Visa’s efforts to enhance Saudi Arabia’s tourism sector?
As travel continues to grow, digital innovations are significantly altering consumer payment behaviors. Saudi Arabia’s tech-savvy population has heightened the demand for digital payments, as reflected in Visa’s 2023 Global Travel Intentions study, which shows that 71 percent of KSA outbound travelers view digital payments as essential for a secure and rewarding travel experience. The widespread use of credit, debit, and prepaid cards, along with contactless transactions and digital wallets, underscores this trend.
Contactless payments now account for 98 percent of face-to-face digital transactions, highlighting the shift towards more convenient and secure payment methods. Visa, a network dedicated to serving everyone, everywhere, is at the forefront of this digital transformation. The company’s advanced digital capabilities and targeted offers allow it to gather valuable data on consumer behavior and tourism trends. This data-driven approach helps Visa identify and capitalize on emerging trends, enabling it to support the STA in optimizing promotional campaigns and strategic initiatives to enhance Saudi Arabia’s tourism sector.
However, the rise in digital payments also brings heightened cybersecurity challenges. Visa is committed to addressing these concerns with robust security measures. The company’s advanced fraud detection systems and technology are designed to prevent, detect, and respond to security threats, ensuring every transaction is monitored and protected around the clock. Visa maintains high security standards to support the growth of digital payments, safeguard consumer trust, and enhance the overall travel experience.
Read: Visa’s CEMEA President Andrew Torre on getting ready for the next wave of digital disruption
Beyond digital, how does Visa cater to the needs of different groups, like solo travelers, families, or adventure seekers as the country welcomes more tourists?
Visa’s travel offers are designed to enhance every part of a traveler’s journey, be it solo tourists or families traveling together. Before the trip, Visa provides attractive deals for hotel bookings and car rentals, along with a premium concierge service to help plan memorable vacations. On travel day, Visa supports convenience with home check-in, airport transfers, dining options, and lounge access. At the destination, Visa cardholders enjoy exclusive offers at major attractions.
Additionally, Visa ensures peace of mind with comprehensive travel insurance, emergency medical assistance, emergency card replacement, and coverage for rented cars, delivering a seamless and secure travel experience from start to finish. Visa’s commitment to security and bolstering trust in digital payments is unwavering. As a leader in cross-border payments, Visa employs advanced technology and state-of-the-art fraud detection systems to monitor and protect every transaction globally, ensuring consumer safety 24/7, 365 days a year.
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