A Vision for Tourism Investment in Saudi Arabia Saudi Summit 2 nd May 2009 1

A Vision for Tourism Investment in Saudi Arabia

Saudi Summit 2nd May 20091

HRH Prince Sultan Bin Salman Bin Abdulaziz Al-Saud

President & Chairman of the Board,

Saudi Commission for Tourism & Antiquities

(SCTA)

Encouraging Factors

• By 2020, the Saudi economy will be a diversified, prosperous, private-sector driven economy.

• Extensive Area and Diverse Geographic Regions

• Strong and Stable Economy

• Coastal Regions – Red Sea and Arabian Gulf

• Purchasing Power

• Size and Diversity of Population

•Encouraging Factors

•Saudi Tourism Indicators

•Saudi Tourism Landscape

• 2020 Tourism Investment Vision

• Airlines expansion

• Airports expansion

•SCTA Facilitation Role

•Major Tourism investment Projects

•Conclusions

1

2008 Saudi Tourism Indicators

• Total No. of visitors 47Mn

• Tourism Revenue (receipts) SR 40 Billion

• Tourism Share / GDP- Excluding Oil (%6.9)

• Tourism capital investment SR 16Bn

• Total Tourism employment 1,114,070 Direct 445,628 Indirect (1.5) 668,442

Source: MAS, SAMA, WTTC









•Conclusions

2

2008 Saudi Tourism Landscape

• 24 Domestic and 4 International Airports

• 1503 Travel Agents 60 Tour Operators

• 1148 Hotels (117,096 Hotels Rooms)• 4231 Furnished Apartments • 7902 Cultural Heritage Sites• 445 MICE Venues 92,500 Events• 477 Shopping Malls• 5 Seaports, 1.5M Passengers• 65 MuseumsSource: MAS









•Conclusions

3

2020 Tourism Investment Vision

To facilitate an effective flow of investment to opportunities across Saudi Arabia that enables tourism to develop in an economically, socio-culturally and environmentally sustainable manner, and ensures the long-term viability of the industry.

To facilitate an effective flow of investment to opportunities across Saudi Arabia that enables tourism to develop in an economically, socio-culturally and environmentally sustainable manner, and ensures the long-term viability of the industry.









•Conclusions

4

Saudi Tourism Investment Vision – Specific Goals• Increase the scale of private and foreign

direct investment

• Economic diversification

• Job creation

• SMEs development

• Preserve cultural & heritage resources.









•Conclusions

5

SCTA 2020 visitors Targets

Visitors Target by 2020 : 88 Million

Source:MAS









•Conclusions

6

Present and future Hotels Rooms

117097

197137

254310

Source: MAS









•Conclusions

7

Tourism Capital Investment 2007 – 2020 (SR Bn)SR Bn

Source: SAMA, WTTC









•Conclusions

8

Airline Expansion

SAUDIA Expanding fleet from 117 to 245

NAS Expanding fleet from 9 to 129

SAMA increasing fleet From 7-9









•Conclusions

9

Airport Expansion• At least SR47.6 billion being invested

across KSA airports.

• 5 major airports under construction

• 3 Airport cities :Jeddah ,Riyadh & Damam.









•Conclusions

10

SCTA Facilitation Role









•Conclusions

11

Investor Support• 10 Provincial Tourism Investment Services

Centres

• Tourism Information & Research Centre (MAS)

• Financing Projects: Financing SMEs set up tourism fund (planned)

• Facilitating and supporting the establishing of tourism corporations by private sector, e.g. ( Al Ola company)









•Conclusions

12

Major Tourism Investments Projects

Promising Tourism destinations

Al Gemh Park

Thahban Wa Al Berek

Hart RahatFursan Island Al Thumamah Wadi Lajab









•Conclusions

13

Al-Uqair Tourism DestinationEastern Province

• Mixed use development. • Top quality beaches,

historical structures, and abundant wildlife.

• Land area :100 million m²• Estimated development

Cost: SR40Bn• Public- Private Partnership.









•Conclusions

14

• Mixed use development: rock garden, archaeological area, farms, museum…

• Land area: 10 Sq Km

• Estimated development Cost: SR10Bn

Souk Okaz Cultural DestinationAl Taif•Encouraging Factors








•Conclusions

15

Heritage Hotels• Develop a high quality, commercially

viable and internationally recognized heritage hospitality brand for the KSA, utilizing its unique heritage assets.

• Convert more than 12 historical building owned by the government into heritage hotels.

• Already received numbers of Expression of Interests from investors.

• Forming a PPP heritage hotels Corporation









•Conclusions

16

Conclusions• Strong economic, political and

social foundations for growth of tourism.

• Established and growing tourism facilities.

• Increasing industry professionalism, standards and capability.

• Wide range of investor support mechanisms.









•Conclusions

17

Thank You

Documents

A Vision for Tourism Investment in Saudi Arabia Saudi Summit 2 nd May 2009 1