Saudi Arabia’s Tourism Surplus Reaches All-Time High $13.3bn

Saudi Arabia’s tourism sector hit a major milestone in 2024. The travel account surplus reached SAR49.8 billion ($13.3 billion), showing the most important 7.8% increase from 2023. Visitor spending from abroad soared to SAR153.6 billion ($40.9 billion), which represents a 13.8% growth over the previous year.

The Kingdom led other G20 countries in international tourist arrivals through the first seven months of 2024. The tourism surge drove domestic travel bookings up by 44%. Family and group bookings experienced exceptional growth at 70%. These impressive results showcase Saudi Arabia’s emergence as a prime tourist destination that perfectly arranges with the country’s ambitious Vision 2030 goals to diversify the economy.

Saudi Arabia Achieves Record Tourism Surplus Through Strategic Vision 2030 Initiatives

_{Image Source: Entrepreneur}

Vision 2030, Saudi Arabia’s blueprint for economic diversification, has taken the Kingdom’s tourism sector to new heights. This national transformation plan, launched in 2016, made tourism the life-blood of Saudi Arabia’s economic future and moved beyond traditional oil revenues.

The Kingdom created a strong support system that led to the current surplus. Three vital entities emerged: the Ministry of Tourism sets regulations and policies, the Saudi Tourism Authority promotes the destination, and the Tourism Development Fund finances projects. This well-laid-out system has substantially sped up tourism growth in every part of the Kingdom.

Crown Prince Mohammed bin Salman set bold tourism targets to boost the sector’s GDP contribution from 3% to over 10% by 2030. The sector already contributes 12.45% to GDP in 2024, up from 11.5% last year, beating this target years ahead of schedule.

Saudi Arabia welcomed over 100 million visitors in 2023. Their combined spending reached SAR 246.02 billion ($65.6 billion), achieving its visitor target seven years early. So, the Kingdom raised its goals to attract 150 million visitors yearly by 2030.

Strategic initiatives under Vision 2030 include:

• The Tourism Investment Enablers Program streamlines processes for tourism investors worldwide
• The Quality of Life Program, 6 years old, develops culture, entertainment, sports and tourism infrastructure
• “Giga-projects” like Neom, a $490 billion futuristic city with the Gulf’s first outdoor ski destination

Strategic collaborations have become vital to this growth. The National Center for Privatization & PPP oversees 200 projects in 17 sectors. These partnerships bring capital and expertise to tourism development, especially when you have infrastructure, accommodations, and attractions.

Tourist visa introduction in 2019 changed everything, bringing more than 94 million visits from global travelers. The government also waived fees for commercial activity licenses for hotels and resorts to speed up investment.

International Visitors Boost Saudi Economy with $41bn Spending

_{Image Source: Entrepreneur}

Saudi Arabia’s tourism landscape has shifted dramatically. Religious pilgrimages no longer dominate international visits like they used to. The Kingdom welcomed 30 million international travelers in 2024. Religious visits made up 41% of these arrivals, while leisure tourism reached 24% and visits to friends and relatives hit 22%.

The private sector’s faith in Saudi tourism keeps growing stronger. Investment climbed to SR14.2 billion in 2024 from SR12 billion a year earlier. Foreign investors brought in 40% of this capital, which shows rising global confidence in Saudi Arabia’s tourism market.

Sports tourism has turned into a goldmine for the Kingdom. The Tourism Ministry reports that sporting events pulled in 14 million visitors who spent nearly SR22 billion. The country’s selection to host the 2034 FIFA World Cup sparked a 390% jump in tourism license applications.

Visitor diversity has exploded across nationalities:

• Saudi Arabia attracted tourists from 70 countries for sporting events in 2018
• This number has grown to more than 160 countries today

Saudi Arabia’s strategic eVisa platform has helped fuel this growth. Travelers from 66 countries can now get one-year, multiple-entry permits. These visitors can stay up to 90 days per entry for leisure, Umrah, business events, or family visits.

The Kingdom hasn’t stopped there. Major tourism projects like the Red Sea Project, Amaala, and the ambitious Neom project are taking shape. The government has made investing more attractive by cutting taxes and reducing customs duties for tourism businesses. These changes aim to speed up private sector involvement in the fast-growing tourism economy.

Tourism Sector Creates Economic Ripple Effects Across Kingdom

_{Image Source: Economy Saudi Arabia}

Saudi Arabia’s tourism boom has changed the Kingdom’s economy in remarkable ways. The effects are visible across multiple sectors, not just in visitor numbers. The travel and tourism sector has emerged as a major source of employment. It has added 436,000 new positions and now employs over 2.5 million people. This represents about one in five jobs nationwide. Employment numbers have grown by 24% compared to pre-pandemic levels. Saudi women’s participation in the sector has seen a dramatic rise from less than 1% in 2018 to 7% in 2022.

The real estate market has thrived because of this tourism expansion. Residential property deals jumped by 38% in the first half of 2024, with transactions worth SAR 127.3 billion. Property prices in major cities have risen significantly. Riyadh saw a 10% increase while Jeddah recorded a 5% rise. The commercial property sector is booming too. Riyadh’s office rental rates increased by 18% as more tourism-related businesses set up shop.

Tourism’s economic contribution tells an impressive story. The sector grew by 32% in 2023 and added SR444.3 billion to the nation’s GDP. This accounts for 11.5% of the total economy. “Retail, wholesale, restaurant, and hotels” has become the second-fastest growing sector since 2018, with a 28% real growth.

The future looks even more promising. The Hospitality Investment Enablers initiative wants to attract SR42 billion in private investments and create 120,000 new jobs by 2030. The government plans to invest AED 2937.55 billion through 2034. This will help reach the ambitious goal of building more than 500,000 hotel rooms to welcome 150 million yearly tourists by 2030.

Tourism now stands as a cornerstone of Saudi Arabia’s economic diversification plan. It creates jobs, boosts real estate markets, and generates significant revenue streams that reduce the country’s reliance on oil exports.

Saudi Arabia has transformed into a global tourism powerhouse, which proves its successful economic diversification. The Kingdom’s impressive numbers tell the story – a record $13.3 billion surplus and international visitors spending $41 billion. These figures show how well Saudi Arabia knows how to attract and benefit from tourism opportunities.

Vision 2030’s initiatives have delivered results way ahead of schedule. Tourism now makes up 12.45% of GDP, exceeding initial targets. Saudi Arabia has raised its visitor targets to 150 million yearly by 2030. Strong infrastructure investments and efficient visa processes support these ambitious goals.

The economic advantages reach beyond direct tourism income. This sector has generated 2.5 million jobs, which represents one-fifth of national employment. Real estate markets have thrived – residential transactions are up 38% and commercial rental rates have increased substantially. These results show Saudi Arabia’s successful change from oil dependency to a diverse economic future.

Saudi Arabia’s tourism success shows what clear vision, careful planning and focused execution can achieve. The Kingdom is ready to welcome millions more visitors as it continues its remarkable path to becoming a premier global destination.