*The following opinions do not reflect those of the Institutions or Organizations mentioned nor GatewayKSA or its Stakeholders.
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Assessment of the tourism and hospitality sector in Saudi Arabia
by Maarten Lels
The Kingdom of Saudi Arabia (KSA) started issuing e-visas for tourists in September 2019. This was a monumental reform because before it used to be one of the most complicated countries to get into as a tourist. So why did the Kingdom change its course?
I personally experienced the tremendous change of the country since the implementation of Vision 2030, officially announced in 2016 by Crown Prince Mohammad Bin Salman. This program is all about the diversification of KSA’s economy, focusing on the non-oil sectors, with the further development of the tourism sector being a big part of it.
Of course KSA has been an important travel destination for Muslims worldwide because of the presence of the Two Holy Mosques in the cities of Mecca and Medina. One of the foci of Vision 2030 is serving Umrah [the minor pilgrimage of Muslims to Mecca] visitors, 30 million.[1]The objective is to improve the quality of services to Hajji [the annual pilgrimage to Mecca, done by 2-3 million people] and Umrah visitors. However, it would also be a good sign of religious tolerance and openness to provide access to the holy cities of Mecca and Medina to non-Muslims in order to showcase the significance of both places for the Muslim part of the world population. In these challenging times the great religion of Islam urgently needs better public relations. Showing small groups of non-Muslims around would not undermine the sanctity of Mecca and Medina and will be a great way of educating and building bridges with other civilizations.
Associated to this is the drive to conserve and promote Islamic, Arab and National Heritage of Saudi Arabia.[2]Although Islam is such an important characteristic of KSA it is very interesting to observe that the five cultural sites on the UNESCO World Heritage List are not Islamic at all.[3]Anyhow, the historic pilgrim road from Kufa to Mecca is on the tentative list since 2015.
When it comes to ensuring environmental sustainability the official objective is to protect and rehabilitate natural landscapes. Based on experience traveling in the country it might also be a good idea to launch a media campaign to educate the Saudi population to not litter in the nature. In the end even when garbage is disposed in the desert it will eventually end up in sea. The further development of the Saudi tourism industry could also increase the participation of women and people with disabilities in the labor market. Training locals for this economic sector will be a great remedy for dealing with the historical high rates of youth unemployment in the country.
Another objective of Vision 2030 is the further integration of the Saudi economy, both regionally and globally. This ought to be done by pushing forward the integration of the Gulf Cooperation Council [the GCC, the main political and economic alliance in the Gulf region] and beyond.[4]I would advise KSA to align its new tourism development with its direct neighbors, mostly the United Arab Emirates, Egypt and Jordan, the most popular countries in the region for tourists according to the World Bank.[5]Especially with the GCC it would be highly beneficial for all parties to find a common strategy in attracting more tourists from further afield. For instance, international visitors to Bahrain could perfectly combine their visit with cities in the Kingdom’s East, like Damman. Literally, it should not be a bridge too far. Regional coordination would also work perfectly for international visitors arriving to the country’s northwest. The finalization of the Neom giga-project will be a magnet for international tourism whereby regional cooperation with adjacent states in the Red Sea region is crucial. More concretely, with the booming tourism sector in Egypt (with more than 15 million tourists expected to visit the country in 2020) it will be crucial to restore high-speed ferries between that country and the Kingdom. [6]Or to be bolder: why not go ahead with a bridge spanning the Red Sea?[7]In short, regional synergies could only work out for the better.
Another industry to tap into could be cruise tourism, a very lucrative industry with a yearly revenue of almost $40 billion[8]. Further opening KSA’s ports on the Red Sea and Gulf coasts to cruise ships will be a logical next step in order to attract high-income international visitors getting to know KSA. More specifically, Saudi ports like Jeddah or Damman could become the next stop in respectively the Suez Canal-Aqaba and the Dubai-Abu Dhabi cruise route.[9]
In order to attract more visitors from a wider spectrum than high-end tourists it will be important to attract low-cost airlines to Saudi airports. Flynas, founded in the Kingdom in 2007, is a good example of this strategy. Expanding the presence of others, like Air Arabia, flyDubai and Jazeera Airways, could be a great contribution to the expanding Saudi tourism industry.[10] And why not bring European visitors via low-cost carriers like Ryanair, Easyjet and Wizz Air to KSA?
Based on my own experience travelling the country in February 2020 I would also recommend constructing more midscale hotels in the Kingdom. There is an abundance of high-end hotels, mostly of international hotel chains, due to previous focus on business travel. Locally-owned three-star hotels will have a more direct positive impact on Saudi society by creating local revenue. This category of hotels currently accounts for only about 20 percent of the total hotel market in Riyadh.[11]The relaxation of closing of shops during prayer time (five times a day) will also be necessary in order not to lose in a very competitive international trade market. At least the debate on this topic is ongoing.[12]
Altogether, the tourism and hospitality sector has huge potential in the Kingdom. The key to success is totally in the hand of the current generation. And for those travelers who still have doubts, definitely visit now that it is possible!
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Maarten Lels is a graduate in European Affairs (College of Europe) and International Relations (University of Antwerp), currently working in European public affairs in Brussels. Having gained significant practical work experience in the tourism sector in the Middle East (Egypt, Turkey and Cyprus) he is a seasoned traveler in the region. Ongoing passionate about current affairs in the Middle East and North Africa he is currently studying evening courses in Middle East affairs in Brussels.
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