Saudi Arabia has surpassed its Vision 2030 tourism goal of attracting 100 million visitors annually by 2023, seven years ahead of schedule, the International Monetary Fund said in its 2024 Article IV Consultation report.
The Kingdom’s tourism revenues reached $36 billion in 2023, with net tourism income increasing by 38 percent. The sector’s direct and indirect contribution to GDP reached 11.5 percent in 2023, with expectations to grow to 16 percent by 2034, according to the report published on Wednesday.
According to the IMF, central to this growth has been a combination of strong domestic demand and rising international arrivals. Non-religious tourism has surged, with increased leisure travel and visits to friends and relatives to be driven further by major international events such as Formula One, the 2027 Asian Cup, and the 2030 World Expo.
The report also highlights the role of tourism in shifting Sadi Arabia’s service balance to a surplus, meaning that the country is now earning more from international visitors than it is spending on outbound tourism. While outbound tourism declines, the report stated that expatriates in the Kingdom significantly increased their leisure spending post COVID-19.
A rise in various industries such as food, beverage, travel and culture have contributed to the country’s boost in tourism along with projects such as the Red Sea Global and Diriyah Gate.
Key government initiatives and robust international marketing campaigns and partnerships with global platforms have also played an instrumental role in facilitating this growth. The introduction of e-visa programs, now available in 66 countries, has enhanced accessibility for international visitors, while significant investments in infrastructure, such as new international airports and expanded road and rail networks, have supported the sector’s expansion.
As part of its Vision 2030 strategy, Saudi Arabia initially aimed to attract 100 million visitors annually by 2030. Achieving this target seven years ahead of schedule, the Kingdom has now revised its goal to 150 million tourists by 2030, highlighting its ambition to become a top global tourist destination.
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