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The Future of Saudi Tourism Investments: Pioneering Change | Skift Global Forum 2023

Skift · 1,138 words · 6 min read

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0:00for a session presented by the ministry

0:01of Tourism of Saudi Arabia please

0:03welcome the deputy minister of

0:05destination enablement Mahmoud abdihari

0:09[Music]

0:24good morning

0:27Saudi Arabia has a track record on

0:31delivering on large ambitions

0:34in the 1970s

0:36we decided that we were going to

0:39diversify our sources of income in

0:42hydrocarbons from just pure extraction

0:44to the downstream value-add

0:47and we wanted to become a global player

0:49a serious Global player within 15 years

0:53we had the two largest petrochemical

0:55complexes the world had ever seen today

0:58we are an Undisputed leader in that

1:00space globally

1:03in 2015

1:04the Kingdom embarked on a change program

1:08like no other

1:10it's called vision 2030.

1:13some of you may have seen the interview

1:15with our Crown Prince his Royal Highness

1:17Prince Mohamed bin Salman last week

1:19where he outlined the three key pillars

1:22to that vision

1:25is to create a vibrant Society

1:27a thriving and diversified economy

1:31and that ambitious Nation

1:34in that interview he mentioned tourism

1:36as a key pillar of vision 2030.

1:40why tourism because tourism delivers on

1:44all three pillars

1:47so we asked ourselves a question

1:50why do people travel

1:52people travel to discover

1:55geography to discover culture

1:58food they travel to do business they

2:01travel for religious purposes

2:04we looked at why people historically

2:06travel to the kingdom

2:07and we saw that people primarily

2:09traveled for business and religious

2:11purposes

2:12we then looked at the assets that we had

2:15in our kingdom we have the stunning

2:18deserts the Lush mountains in the south

2:22the pristine coral reefs on the Red Sea

2:25snow in the north incidentally we're

2:27hosting the 2029 Asian Games

2:33in addition to that we have a culture

2:35and Heritage that extends thousands of

2:38years

2:39and probably the most important asset we

2:41have

2:42our people

2:43we have a generous

2:46people of hospitable people who are

2:49always welcoming

2:52all the building blocks to build a

2:54tourism industry are there

2:57so let me show you some of what we have

3:00to offer in this short video

3:02[Music]

3:15[Music]

3:21foreign

3:23[Music]

3:29[Music]

3:48[Music]

3:56[Music]

4:09[Music]

4:55[Music]

5:03thank you

5:04foreign

5:09diversity opportunity authenticity

5:14these are the three building blocks for

5:16the Saudi tourism space

5:19Vision 2030 set us three main goals

5:22the first is to become a top destination

5:25globally by attracting 100 million

5:26visits by 2030

5:29the second is for tourism to become the

5:31second largest contributor to our

5:34national GDP by 2030

5:37and third and probably most importantly

5:39is to create one million additional jobs

5:41in the Kingdom to bring our total to 1.6

5:44million jobs in the sector

5:47our mission is to create a visitable

5:50sustainable investable tourism sector in

5:54the Kingdom

5:56and on the eve of world tourism day

6:00which is being hosted in our Capital

6:02Riyadh where all the Globes policy

6:06makers in the sector have gathered I'm

6:08going to tell you how we plan to achieve

6:11our goals

6:14the first thing we did was we created a

6:16new ecosystem

6:18centered around the ministry we created

6:21the Saudi tourism Authority who acts as

6:23our tourism board they are responsible

6:25for the visitor experience the marketing

6:28and promotion of our destinations

6:30domestically and globally we created the

6:34Saudi tourism Development Fund with the

6:36aim of funding and finding Funding

6:40Solutions for the private sector to

6:42invest in what is a new economic sector

6:44in the Kingdom

6:46focusing a little bit on our ministry

6:48we act as the main orchestrator and

6:51promoter for the sector

6:53we create the right regulation

6:57for visitors and investors alike in

7:00order to promote healthy business

7:02practices sustainable business practices

7:05and the sustainable environmental impact

7:11we commit to training 100

7:14000 Saudis a year in order to make sure

7:16that these Investments have the right

7:19people in order to meet our ambition in

7:22terms of the service and the quality of

7:24hospitality that we want to offer our

7:26visitors

7:28we enable our destinations through two

7:31main things the first is building the

7:33right framework to ensure that the right

7:36product is delivered in the targeted

7:38destinations through the right

7:41investment

7:43second we take lessons learned from

7:45everything that we've been working on

7:47identify the things that we need to fix

7:51and fix it

7:54so how are we doing versus our

7:57targets

7:59so in 2022 we saw 16 and a half million

8:03inbound visitors

8:05those visitors contributed a direct

8:07spend into the economy of 26.2 billion

8:11dollars

8:12domestically we saw 77.8 million

8:15visitors and they spent

8:1828.6 billion dollars

8:22that's 94.4 billion million visitors in

8:262022.

8:28that is a 45 increase on 2019.

8:33spend has gone up 25 versus 2019.

8:38this is all bearing in mind that we are

8:41at 95 percent of our inbound visitors

8:44versus 2019.

8:47comparing that to a global average of

8:49down 34 versus 2019 I think a minus five

8:54percent is okay

8:57so our solid performance and being who

9:01we are and as ambitious as we are 100

9:04million visits is no longer sufficient

9:06as a Target

9:08we are now aiming for 150 million

9:10Visitors by 2030.

9:14if we drill down into those numbers a

9:16little bit

9:16as a purpose of travel leisure is our

9:20strongest growth area

9:22we have grown 119 percent since 2019.

9:28today Leisure accounts for 38 of all

9:30visits as a purpose of travel

9:33and 41 percent have spent

9:36on the jobs front we now have eight

9:39hundred and eighty thousand people

9:41employed in the sector

9:43that is a growth of 15 percent versus

9:452019. incidentally 44 of that Workforce

9:50is female

9:53while I cannot share on stage our

9:56year-to-date performance please come and

9:58see me afterwards if you want some

9:59insight

10:02um

10:03what I can say is that we are we are

10:05well above our targets and we are well

10:07above our 2022 performance

10:10so we must be doing something right

10:14and before I allow you to enjoy your

10:18coffee break

10:19I want to leave you with one thought

10:22I conclude by inviting you to Saudi

10:24Arabia

10:26I heard some people talking earlier this

10:28morning about whether they should come

10:31to Saudi they shouldn't come to Saudi

10:33and it was an interesting little piece

10:35of

10:37info that I was listening to but I urge

10:40you to come and visit come and see it

10:41for yourself

10:43as a visitor you will be welcomed with

10:45open arms and I promise you an

10:47experience like no other

10:49as a business or an investor you will

10:52find that we are open for business

10:55and that we mean business

10:58my team and I are around for the next

11:01couple days please catch us we'll be

11:04more than happy to speak to you

11:06I believe that is our contact details if

11:09you want to Ping us an email and learn

11:10more

11:11feel free to do so

11:13thank you for your time thank you for

11:15listening

11:15[Applause]

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