TDF powers Saudi Arabia’s Vision for a global tourism hub

Sunday, October 27, 2024

Saudi Arabia, with its rich history and diverse culture, is rapidly positioning itself as a premier global tourist destination.

In line with Saudi Vision 2030, the government has placed significant emphasis on boosting the tourism sector, leading to the establishment of the Tourism Development Fund (TDF) in 2020 by royal decree.

The TDF is designed to act as a strategic partner in the sector’s growth, supporting Saudi Arabia’s ambitions of becoming a global tourism powerhouse.

Operating under the National Development Fund, the TDF aims to attract foreign investors to key destinations in the Kingdom while providing support for large-scale projects.

By collaborating with both public and private sector financiers, the Fund strengthens the national tourism ecosystem and facilitates sustainable development.

One of the Kingdom’s main tourism goals is to ensure that the sector contributes 10% of the national Gross Domestic Product (GDP) by 2030, while also creating around one million new jobs in various tourism-related industries.

With a focus on Saudi Vision 2030’s broader objectives, the Kingdom seeks to harness its rich heritage, stunning landscapes, and mega projects to offer captivating experiences.

By 2030, Saudi Arabia aims to welcome 30 million pilgrims annually, positioning itself as the leading destination for Muslim religious tourism worldwide.

SAR 40 Billion in Projects Facilitated by the Tourism Development Fund

Qusai Al-Fakhri, CEO of the Tourism Development Fund, highlighted the Fund’s role in supporting the sector’s development by providing business solutions and financing for large, medium, and small tourism projects.

Since its inception, the TDF has facilitated 137 tourism projects, valued at approximately SAR 40 billion, enhancing tourism infrastructure across multiple regions in the Kingdom.

The Fund aims to boost competitiveness, encourage domestic investment, and attract international capital to diversify the economy beyond oil.

Al-Fakhri also announced a Memorandum of Understanding with Ennismore to establish a SAR 1.5 billion investment fund.

This partnership will bring 12 Ennismore lifestyle hotels to Saudi Arabia, adding around 2,000 hotel rooms and further improving the tourism infrastructure.

Divehood: A Digital Platform Revolutionizing Underwater Tourism

A key example of innovation supported by the Tourism Development Fund is Divehood, a digital platform that connects divers with local and international diving service providers.

Created to foster underwater exploration experiences, the platform is a testament to Saudi Arabia’s commitment to diversifying its tourism offerings.

Divehood’s founder, Haitham Khayat, credited the TDF for its role in bringing the platform to life.

“The Tourism Development Fund provided the funding and support that made it possible to realize our vision for Divehood in an unprecedented timeframe,” he said.

Saudi Tourism Growth Surges in 2024

The tourism sector in Saudi Arabia has shown remarkable growth, with the Kingdom leading G20 nations in international tourist arrivals and tourism revenue growth during the first seven months of 2024.

According to the UN World Tourism Barometer, Saudi Arabia saw a 73% increase in tourist arrivals and a 207% surge in international tourism revenue compared to 2019.

The International Monetary Fund’s September 2024 report following its “2024 Article 4 Consultations” praised Saudi Arabia’s tourism sector for contributing 11.5% to the GDP in 2023.

The report projects that this contribution will rise to 16% by 2034, reflecting the success of the Kingdom’s tourism strategy.

Government Committed to Sustainable Development

In a recent preliminary statement for the 2025 fiscal year, the Ministry of Finance announced projected total expenditures of SAR 1,285 billion, with revenues of SAR 1,184 billion.

Finance Minister Mohammed Aljadaan emphasized the government’s focus on executing strategic projects to achieve sustainable development, particularly in the tourism sector, which is seen as a key driver of Saudi Arabia’s economic diversification efforts under Vision 2030.

• India’s Ministry of Tourism to Showcase Diverse Offerings at World Travel Market (WTM) in London from November 5-7, Focusing on Wedding Tourism, MICE, Cultural Heritage, and the ‘Chalo India’ Initiative

• Spain’s tourism industry rebounds with 42.5 million tourists, largest source markets include the UK, Germany: What you need to know?

• Marina Bay Sands’ US$750M investment transforms hotel luxury

• Bahrain Elevates Status: Manama Named 2024 GCC Tourism Capital

• As global tourism hub, Dubai reinforces its position