Saudi Arabia has reached a tourism first, welcoming more tourist arrivals than ever before in 2023, according to the World Travel & Tourism Council’s (WTTC).
The latest Economic Impact Research (EIR) from the global tourism forum confirms that 100 million visitors went to Saudi Arabia over the course of the year – a figure the Kingdom had set itself for 2030. Reaching the target seven years early is being interpreted as a vindication of a growth strategy based on tourism and services rather than fossil fuels. The Kingdom has already adjusted its ambition and will now aim for 150 million visitors by 2030.
11.5% of GDP now comes from tourism
Amid a Middle East sector that saw 25% growth in 2023, Saudi Arabian travel and tourism grew by 32%, up 30% on previous records, with the sector pouring a ground-breaking SAR 444.3BN (US $118.4 BN) into its economy. That’s 11.5% of the Kingdom’s GDP.
International visitor spending shot up by almost 57% to reach SAR 227.4BN, smashing the previous record by SAR 93.6BN, while the outlay by domestic visitors grew by 21.5% to reach SAR 142.5BN.
The success translates to 436,000 more jobs created in travel and tourism during 2023, swelling the already-recovered sector by 24% to 2.5 million jobs across the country (20% of the job market).
Fusion of cultural heritage and innovation
Julia Simpson, WTTC President & CEO hailed the Saudi’s “extraordinary achievements last year” which she said “mark a pivotal moment in its journey towards becoming a global tourism leader.” She attributed the results to “the Kingdom’s visionary commitment to the sector, showcasing an impressive fusion of cultural heritage and innovative tourism initiatives.”
Describing tourism as a “key pillar” of the Kingdom’s “economic diversification” the Saudi Minister of Tourism and Chair of the Executive Council of UN Tourism, His Excellency Ahmed Al-Khateeb recognised the “rapid success we have achieved in transforming Saudi Arabia’s tourism industry”, which he emphasised came from investment, “with more than $80 billion earmarked by 2030.”
Growth set to continue in 2024
That investment is set to pay off again in 2024, if WTTC forecasts are accurate. GDP contribution by the sector is anticipated to reach SAR 498BN over the year, creating another 158,000 jobs. International visitor spending is projected to increase to SAR 256BN, and domestic visitor spending is expected to rise to SAR 155.2BN.
And the 10 year forecasts predict GDP contribution growing to SAR 836.1BN by 2034, representing almost 16% of the Saudi Arabian economy, with 20% of the working population employed in the sector.
