Promoting Tourism in Saudi Arabia-Government Initiatives
With its enormous potential to create jobs, tourism has grown to be a significant engine of the Saudi economy. As a result, Saudi Arabia has launched six significant projects to boost the travel and tourism sector. The National Transformation Program (NTP) 2020's objectives were greatly helped by the Saudi Commission for Tourism and National Heritage (SCTH), which reviewed its strategy to be in line with Vision 2030. More than 10.5 million Saudis visited cultural sites within the kingdom in the first ten months of 2021, a 30% increase from the previous year, making the timing of this impending transition even more critical.
Domestic cultural tourism increased from 2017 to 2021 by 4.5 percent annually, according to the State of Culture in the Kingdom of Saudi Arabia 2021: Culture in Public Spaces.
The new tourist law would create new regulatory settings in the kingdom to entice tourism innovators and enhance the ease of doing business, according to the Saudi Ministry of Tourism. It will make it possible for brand-new or unproven tourism enterprises to get specialized permits and support from the Ministry, enabling them to succeed. Establishing a one-stop platform for all tourist stakeholders, it will also streamline licensing processes and procedures. Following the recent release of the Regional Tourism Development Councils Regulation by the kingdom, a significant step forward in the implementation of Saudi Arabia's National Tourism Strategy, the law was passed. NEOM, Al-Soudah, the Red Sea, and Diriyah Gate are a few of the tourist spots that will develop more quickly as a result of the regulation. (Saudi Arabia’s tourism sector aims to bring 100 million visitors annually, 2021)
The Basics behind the Initiative
The top twenty nations in the World Economic Forum's Travel and Tourism Competitiveness Index served as the foundation for the development of the new tourism law, which was based on these best global practices. It includes important data concerns and calls for the creation of an information database with statistics and data on all facets of the Saudi tourism industry in accordance with global best practices for investors, service providers, travellers, and other interested parties.
In addition, the Council of Ministers approved a resolution giving the Ministry of Tourism Authority to promote sector growth. The decision authorizes the ministry to enable tax and customs exemptions or reductions with relevant governmental bodies, providing strong inducements for enterprises to participate in the expanding tourism industry in the country. It made it possible for the ministry to design work plans and training programmes in collaboration with other private sector organizations, facilitating the training and employment of Saudis and advancing the nation's human capital. (Nihal, 2022)
This new framework for cooperation is thought to be advantageous for the private sector and pertinent government agencies that will raise the standard of services in the travel and tourism industry and advertise Saudi Arabia as one of the top five travel destinations worldwide. It will hasten the accomplishment of the objectives outlined in the kingdom's National Tourism Strategy and Vision 2030, including 100 million additional visitors, tourism's 10% GDP contribution, and one million additional jobs in the industry. (Nihal, 2022)
Economics and the Red Sea Project: Harnessing Tourism for Diversification
As a part of the diversification plan announced under Vision 2030, the red sea project was unveiled as a ‘mega tourism project based on the Red Sea coast of the Kingdom. The Project aims to transform 50 uninhabited islands of white sand beaches into an ‘exquisite luxury tourism destination’. Boosting economic development through diversification has been a vital component of Saudi Vision 2030. Saudi Vision 2030 places a strong emphasis on accelerating economic diversification. A mid-term economic reform plan called Vision 2030 seeks to lessen the influence of oil on Saudi Arabia's economy and society, encourage privatization, reduce both male and female unemployment, and enhance local content in imported goods like defence and renewable energy equipment. It is startling to realize that Saudi Arabia's economy has relied heavily on oil for the past 80 years. Around 80% of export earnings, approximately the same amount of government revenue, and 30% to 40% of GDP are contributed by it. The Vision's goals are to lessen the influence of oil on the Saudi economy, boost non-oil exports' contribution to non-oil GDP from the current 16% to 50%, boost the private sector's share of GDP from the current 40% to 65%, boost non-oil revenue from the current SAR 163 billion to SAR 1 trillion, and lower the unemployment rate from the current 11.6% to 7%. (Nihal, 2022)
Natural resources, archaeological treasures, and historical locations are highlighted in Saudi tourism, which offers geographical and historical diversity. The Kingdom's Tourism Authority launched the tourist visa programme in 2019, initially focusing on 49 countries, and facilitated access to tourist visas electronically or through entry points to the Kingdom within specific regulatory controls. As a result, 450,000 tourist visas were issued prior to the COVID-19 pandemic. (Said Ladki, August 2020)This is in fact evidence of the achievements of the plan for Saudi Arabia's tourism industry reform, in contrast to the recent increase in that sector.
The reforms are being brought about by serious economic concerns, but Saudi Arabia's wealth in terms of what it offers and what it experiences is a double-edged sword. combining the two Balancing the two must be ensured if the potential behind the initiative is to be maximized. Thus, while Saudi Arabia has a striking opportunity to capitalize on, it must explore critical partnerships in its neighbourhood and realm of an alliance, if it wishes to sustain for long. The nation needs to realize that while bringing about tourism reforms is not so much of global concern as such, they also do not exist in international limbo. Every domestic concern has an international bearing and vice-versa. Therefore, for the reforms to be successful, Saudi must calibrate some sort of standing in the global tourist circuit, reshaping its safety and geographical vicinities as easily accessible and welcoming to the global community.
References
· Hussain, D. Z. (2017, august 29). Saudi Arabia’s Red Sea Project: Harnessing Tourism for Diversification. Retrieved from icwa.in: https://icwa.in/show_content.php’lang=1&level=3&ls_id=1563&lid=1509
· KHAN, G. A. (2017, july 17). Saudi Arabia launches new tourism initiatives within Vision 2030. Retrieved from https://www.arabnews.com/node/1130646/saudi-arabia: https://www.arabnews.com/node/1130646/saudi-arabia
· Nihal, M. (2022, august 25). Domestic travel in Saudi Arabia up 30% as government's cultural vision boosts tourism. Retrieved from www.thenationalnews.com: https://www.thenationalnews.com/travel/news/2022/08/25/domestic-travel-in-saudi-arabia-up-30-as-governments-cultural-vision-boosts-tourism/
· Sadi, M. (2005). Tourism In Saudi Arabia And Its Future Development. Studies in Business and Economics.
· Said Ladki, A. A. (August 2020). The Rise of a New Tourism Dawn in the Middle East. Journal of Service Science and Management , Vol.13 No.4, .
· Saudi Arabia’s tourism sector aims to bring 100 million visitors annually. (2021, july 26). Retrieved from https://www.arabnews.com/node/1900641/saudi-arabia: https://www.arabnews.com/node/1900641/saudi-arabia
Pic Courtsey-Akil Imran at unsplash.com
(The views expressed are those of the author and do not represent views of CESCUBE.)
Aastha Saluja is a graduate from lady Shri Ram college, Delhi University and is currently pursuing her masters in politics with specialization in international relations at Jawaharlal Nehru University. Her area of interest includes emerging trends of the Indo -pacific region and challenges of democratization and economic development post Cold War.
