Unlock Opportunities with Saudi Arabia’s Tourism Boom: Licensing Your Tourism Business

Overview of Saudi Arabia’s Tourism Landscape

Saudi Arabia’s tourism sector is undergoing a remarkable transformation, positioning the Kingdom as a premier global travel and leisure destination. A significant milestone in this journey is the recent partnership between Red Sea Global and the World Travel and Tourism Council (WTTC), which strengthens the country’s unwavering commitment to achieving its Vision 2030 goals. With an ambitious target to attract 1.5 million tourists annually, this collaboration highlights Saudi Arabia’s determination to diversify its economy and reduce its dependency on oil.

The Kingdom’s success story in tourism is built on a foundation of strategic initiatives and reforms that have propelled its tourism sector to new heights. In 2023, there was a staggering 390% increase in demand for tourism activity licenses, and the contribution of tourism to the non-oil Gross Value Added (GVA) is estimated to exceed 7%. The tourism sector’s impact on the economy projected to reach approximately 635 billion Saudi Riyals by 2032. With the tourism sector’s direct contribution to GDP expected to surpass 4%, Saudi Arabia continues to showcase its resilience, innovation, and commitment to excellence.

Several factors drive tourism in Saudi Arabia, making it an increasingly popular travel destination. Streamlined travel visa procedures and expansive global promotional campaigns have been instrumental in showcasing the Kingdom’s diverse offerings. From the rich cultural heritage embedded in historic sites to the futuristic urban developments, Saudi Arabia presents a captivating blend of tradition and modernity.

Saudi Arabia as a Global Tourism Destination

The Saudi Arabian government recognizes tourism as a pivotal element in its Vision 2030 economic diversification initiative. The tourism, travel, and entertainment sectors are receiving strategic attention as priority areas to elevate domestic household spending on leisure activities. By transforming the nation into a global travel hub, Saudi Arabia aims to stimulate economic growth, create job opportunities, and enhance its international standing.

To realize these ambitions, Saudi Arabia has committed a staggering $550 billion to reshape its tourism landscape by 2030. This monumental investment, the largest of its kind globally, underscores the Kingdom’s resolve to carve out a unique identity in the tourism sector. The impact of these efforts is already visible, with Saudi Arabia climbing 12 places on the WTO Index to secure the 13th spot among the most visited countries by international tourists in 2022.

These developments open up significant opportunities for tourism businesses to grow, with the proper license for tourism business ensuring success in Saudi Arabia’s thriving market.

Saudi Arabia’s Tourism Strategy

A Thriving Pipeline of Saudi Tourism Projects

Saudi Arabia’s landscape is being redefined by a slew of ambitious tourism projects. Luxury tourism initiatives, a new airport, and a chain of hotels are poised to launch along the Red Sea coast. The futuristic city of Neom is set to introduce Sindalah Island, which will host three Marriott properties, including the Kingdom’s first Autograph Collection Hotels property. Additionally, Trojena at Neom, slated to open in 2026, will offer skiing opportunities and glamping experiences against the backdrop of the GCC’s highest mountain range.

Saudi Arabia is investing heavily in diverse projects, from the visionary Neom City to the entertainment-focused Qiddiyah Project. The Red Sea Project, boasting 90 islands, and Amaala, dubbed the “Middle East Riviera,” exemplify the nation’s commitment to creating a distinct leisure landscape. These initiatives not only promote tourism but also celebrate Saudi heritage and culture.

Tourist Visa in Saudi Arabia

As part of its Vision 2030 commitment, Saudi Arabia is redefining its economic landscape and establishing itself as a must-visit global destination. To facilitate tourism, the Kingdom introduced an Instant E-Visa system for citizens of 49 countries, allowing visitors to stay for up to 90 continuous days. This initiative aims to foster cultural exchange and promote Saudi Arabia’s rich heritage on a global scale. Eligible countries span Europe, Asia, the Americas, and Oceania, opening doors to a diverse range of tourists.

Moreover, Saudi Arabia is surging ahead in the travel industry by offering visa-free entry to 88 countries, including the UK, South Africa, Dominica, and GCC countries. This strategic move is part of the Kingdom’s efforts to attract a broader spectrum of international visitors, reinforcing its position as a global tourism hub.Apply for your visa with Al Taasis.

Saudi Arabia Airports and Top Airlines

Saudi Arabia’s strategic location and booming tourism industry have led to the development of several world-class airports, which serve as crucial gateways for international and domestic travel, supporting the country’s vision of becoming a global travel hub.

Major Airports in Saudi Arabia:

• King Abdulaziz International Airport (JED), Jeddah: A major hub for international and domestic flights, featuring state-of-the-art facilities, including a new terminal designed to handle increased passenger traffic. The airport is renowned for its Hajj Terminal, specifically designed for pilgrims during the Hajj season.
• King Khalid International Airport (RUH), Riyadh: Serving the capital city, this airport is a key player in Saudi Arabia’s air travel network. It offers extensive international and domestic flight options and has undergone significant upgrades to enhance the passenger experience.
• King Fahd International Airport (DMM), Dammam: The largest airport in the world by land area, located in the Eastern Province. It serves as a vital connection point for travelers in the region and boasts luxurious facilities and extensive parking areas.

Top Airlines in Saudi Arabia:

• Saudia: The flag carrier of Saudi Arabia, one of the largest airlines in the Middle East, offering an extensive range of domestic and international flights. Known for its modern fleet and exceptional in-flight entertainment and dining options, Saudia connects the Kingdom to numerous destinations across the Middle East, Asia, Europe, Africa, and North America.
• Flynas: A leading low-cost airline in Saudi Arabia, Flynas is known for its affordable fares and extensive route network. Operating a young fleet of Airbus A320s, it offers budget-conscious travelers high-quality service across domestic and international destinations.
• Flyadeal: A subsidiary of Saudia, Flyadeal is another prominent low-cost carrier, focusing primarily on domestic routes while gradually expanding its international network. It operates a fleet of Airbus A320 aircraft, catering to budget travelers with a no-frills service model.

Recent Developments in Saudi Arabia’s Tourism Industry

Saudi Arabia has recently ascended nine positions to rank 41st on the global tourism index, marking the Gulf region’s most significant improvement. This achievement is attributed to enhanced infrastructure, a growing corporate presence, and major business hubs.

According to the World Economic Forum’s (WEF) Travel & Tourism Development Index (TTDI) report, the Kingdom has demonstrated the most considerable progress in the Middle East and North Africa region since 2019. In 2023, Saudi Arabia’s travel sector exceeded expectations, leading to an upward revision of its Vision 2030 targets from 100 million to 150 million visits by 2030.

The Kingdom has introduced several regulatory changes, such as the “Visiting Investor” visa and the expansion of the GCC unified visa service, to attract more international visitors and investors. In the first half of 2024, the number of tourists reached 60 million, spending a total of SR150 billion. The tourism sector currently contributes about 5% to the local economy, with plans to increase this to 10%, equivalent to SR600-700 billion.

Saudi Arabia is on a determined path to becoming a travel hotspot, with $800 billion earmarked for tourism investments by 2030. The Kingdom is developing giga-projects with cultural and natural attractions, establishing a new airline in Riyadh, building a massive new airport in the capital, and planning to add up to 250,000 hotel rooms by 2030. The unified GCC tourist visa, expected to come into effect by the end of 2024, is anticipated to boost regional tourism to 128.7 million by 2030, up from 39.8 million in 2022.

Obtain Your Tourism License in Saudi Arabia with Al Taasis

Saudi Arabia offers numerous opportunities in the tourism sector, presenting travelers with a diverse range of experiences. Seven specific tourist activities require practitioners to obtain a tourism license and adhere to their respective requirements. These activities include travel and tourism services, tourism accommodation facilities, management of such facilities, private tourism accommodation facilities, tourism guidance, tourism consultancy, and experimental activities.

Getting a license for your tourism business in Saudi Arabia is now easier than ever. Our expert team at Al Taasis is dedicated to assisting you in acquiring the necessary tourism licenses, ensuring you can make well-informed decisions and benefit from the vibrant Saudi tourism sector.

Start your tourism business in Saudi Arabia with the right license today!