Saudi Arabia has announced investment of USD 11 billion in the tourism hospitality sector, expected to create 42,000 new room keys and approximately 120,000 job opportunities.

Saudi Arabian Minister of Tourism Ahmed Al-Khateeb has launched the Tourism Investment Enabler Programme (TIEP) to boost the country’s fast-growing tourism sector. 

According to a press statement by the Ministry, TIEP will aim to catalyse private investments in key tourism sites across the kingdom by up to SAR 42 billion (USD 11 billion) and drive projected annual GDP increase of SAR 16 billion (about USD 4 billion) by 2030.

In a press statement, the Ministry of Tourism Saudi Arabia says that it has collaborated with the Ministry of Investment to design this flagship Hospitality Investment Enablers, part of the wider TIEP. 

In a press statement, the ministry says that its new campaign aims to make it easier and more cost-effective to do business in Saudi tourism for international and local investors. “This initiative will facilitate and increase the supply of accommodation capacity in targeted tourism destinations, enhancing the diversity of the kingdom’s offerings and marking a pivotal move to position Saudi Arabia as a leading global tourism destination,” it says.

A notable aspect of the initiative is its focus on benefiting local communities across tourism destinations. By localising services such as contracting, design, and consulting, the programme aims to create a direct positive impact on various sectors, coupled with over USD 800 billion invested to transform the tourism landscape.

The wider TIEP includes regulatory reforms across tourism licensing for multiple types and scales of operations now available to better fit the specific needs of investors, the statement says.

It adds that the initiative includes a range of strategic enablers designed to improve business operations and project viability. Key enablers include facilitating access to government-owned land under favorable terms, streamlining project development processes, and reducing barriers to market entry. 

The statement adds that Saudi Arabia expects the initiative to significantly impact the socio-economic landscape, creating 42,000 new room keys and approximately 120,000 job opportunities, furthering talent development.

It says that another key initiative of TIEP is the Tourism Investment One Stop Shop, which will be launched later this year in collaboration with the Saudi Business Centre. It will offer all tourism ecosystem services under one roof to support investors through their full investment journey in addition to online integration and digital experiences.

“Saudi Arabia offers the world a rich diversity of culture and experiences. Vision 2030 has put Saudi Arabia on the pathway to become a global tourism powerhouse with the tourism sector in Saudi being a key driver of economic diversification. In 2023, we saw a 390 pc increase in demand for tourism activity licenses and this is just the beginning. Over the next 10 years, Saudi Arabia will be the world’s top investor in this sector as we continue to unlock our country’s potential,’’ says Al-Khateeb.