‘Saudi hospitality sector to generate SR42 billion investments and 120,000 jobs by 2030’

Saudi Gazette Report

BERLIN — Eng. Mahmoud Abdulhadi, deputy minister of tourism for destination enablement, emphasized that Saudi Arabia is providing promising opportunities for both Saudi and international investors to draw investments into the Kingdom’s vital tourism sector. “The recently launched Hospitality Investment Enablers (HIE) initiative seeks to attract private investments in the hospitality sector, amounting to about SR42 billion ($11 billion) with creation of 120,000 new jobs by 2030,” he said while attending a dialogue session within the Saudi Ministry of Tourism’s participation at the International Hospitality Investment Forum (IHIF) in Berlin.

He said that the flagship HIE, one of the initiatives of the Tourism Investment Enablers Program (TIEP), is expected to contribute about SR16 billion ($4 billion) to Saudi Arabia’s gross domestic product by 2030 in addition to enhancing tourism infrastructure and hospitality facilities in the Kingdom.

Abdulhadi said that the HIE, launched by the ministry within its TIEP, is part of the strategic objectives of Vision 2030, and was designed specifically to enhance Saudi Arabia’s position as a global tourist destination as well as to create great investment opportunities for local investors. “The initiative aims to increase and diversify tourism offers, and raise the capacity of tourist hospitality facilities in tourist destinations,” he said.

The deputy minister also held multiple meetings with a number of international investors at the ministry’s pavilion at the forum, during which he reviewed the wide range of facilities provided by the Kingdom within the TIEP.

He stated that the HIE is supported by a suite of strategic enablers, including access to government-owned land under favorable terms, streamlined project development processes, and regulatory adjustments aimed at reducing barriers to market entry and operational costs. The initiative will produce many benefits on the social and economic levels, by increasing the number of hotel rooms by approximately 42,000 rooms, and providing approximately 120,000 job opportunities in the targeted destinations by 2030.

Saudi Arabia’s active participation in IHIF aims to showcase the Kingdom as an enticing investment frontier for international investors, emphasizing the lucrative opportunities within the tourism and hospitality sectors. This global stage provides the perfect platform for the Ministry of Tourism to forge lasting partnerships and highlight the Kingdom’s commitment to elevating its tourism industry standards, fostering sustainable growth, and offering robust support to investors.

Through this engagement, the ministry is not just showcasing investment opportunities; rather it is inviting the world to be a part of Saudi Arabia’s ambitious journey towards redefining global tourism norms. Investors are encouraged to seize this unparalleled chance to collaborate with the Kingdom, as it paves the way for a new era of tourism excellence aligned with Vision 2030’s transformative objectives.

The Ministry of Tourism’s participation coincides with the major achievements made by the tourism sector in the Kingdom during the year 2023, as the number of tourists exceeded more than 106 million tourists and spending by foreign tourists exceeded more than SR135 billion, thereby achieving one of the goals of the Kingdom’s vision seven years early.

The initiative aims to achieve an ambitious increase in the number of hotel rooms to more than 500,000 rooms, which will contribute to hosting 150 million tourists annually by 2030. This strategy was designed to revitalize the hospitality sector, provide a qualitative set of supplies in major tourist destinations, and enhance the attractiveness of diverse tourism in the region. The Kingdom provides unique opportunities for local investors to participate in the growth of the sector and reap the benefits of the tourism boom in the Kingdom