Saudi Arabia’s drive to transform its formerly oil-dominated economy through tourism and services has just received a massive boost by gaining Chinese “Approved Destination Status” (ADS). Starting on 1 July 2024, the designation is a control mechanism over Chinese travel abroad, which claims to “guarantee safe and reliable tourism services for the Chinese customers” and which monitors their movement while visiting overseas in organized groups, preventing migration attempts. It is a pre-requisite for any country looking to bring in Chinese tourists en masse.
The ADS approval follows behind the scenes work between the two nations to reduce red tape around visa processes, bring down costs and increase the number of seats on flights between the destinations, with flight capacity up by 130% and double the weekly flight frequency compared to a year ago.
Achieved “by strengthening bilateral ties with China, the ADS agreement opens doors for economic development across sectors, benefiting both nations,” said Saudi Arabia’s Ambassador to China, Abdulrahman bin Ahmed Al-Harbi, marking the occasion.
The Arabian Peninsula Kingdom has also undertaken to provide Chinese language assistance at various locations and on websites, as well as implement pay systems that Chinese visitors can access, such as UnionPay. With visa-on-arrival now possible and marketing campaigns targeting the Chinese, it’s all part of a Saudi ambition to attract up to 5 million Chinese tourists by 2030, meaning they would take their place as the Kingdom’s third largest source market.
There is every reason to expect success. Since launching its so-called Vision 2030 diversification programme, the Kingdom has gone on to attract millions of tourists – a record 100 million in fact in 2023, according to a World Travel & Tourism Council’s (WTTC) Economic Impact Research (EIR). That represents a 56% increase on benchmark pre-Covid year 2019, “a pivotal moment in its journey towards becoming a global tourism leader” in the words of WTTC President and CEO, Julia Simpson.
Of those 100 million, 27 million were international tourists. The Kingdom has revised up its targets to 150 million by 2030 as a result and the Chinese marketplace is seen as a key to unlocking those figures. They might stay in places such as one of the 50 new resorts being developed as part of the Red Sea Project, which promise up to 8,000 new hotel rooms offered by well-known hospitality brands, such as The Four Seasons, Rosewood, and St Regis.
If the plan comes off, Saudi Arabia would be following in the footsteps of Dubai, which has more than doubled its Chinese visitor numbers year-on-year through low friction policies such as visa-free entry, direct flights from 14 Chinese cities, and the adoption of China-friendly online payment methods.
