Saudia Arabia: What triggers boom in tourism industry?
New policy targets aim to position the Kingdom as a leading global travel destination within the GCC
Riyadh: Saudi Arabia has redefined its tourism landscape with the removal of commercial activity license fees for the hospitality sector, effective September 4. The reform targets hotels, hotel apartments, and residential resorts, marking a major step in the Kingdom’s quest to become a premier global tourist destination.
The elimination of license fees is set to dramatically lower the entry barriers for hospitality ventures, making it easier for both new entrants and established businesses to thrive. Lower operational costs will drive increased investment, speed up project launches, and strengthen the sector's contribution to the national GDP.
Under Vision 2030 Saudi Arabia is to become a leading international tourist hotspot, supported by major investments in infrastructure, cultural initiatives, and a revamped tourism sector.
Image credits: EyeOfRiyadh
Explosive growth on the horizon
Alpen Capital's latest report projects a steady 7.5% annual growth for Saudi Arabia's hospitality sector from 2023 to 2028, driven by government reforms and a growing number of high-profile events like sports and conferences. With revenues expected to reach $48.1 billion by 2028, the sector is set to play a pivotal role in the country’s economic growth.
Initiatives such as the removal of license fees create a more vibrant business environment, attracting increased private-sector participation.