Riyadh: In 2023, Saudi Arabia's travel and tourism sector witnessed a remarkable 32% expansion, contributing a record-breaking SAR 444.3 billion to the Kingdom's GDP. This surge not only surpassed the previous record by nearly 30% but also elevated tourism's share of the national economy to a significant 11.5%. These figures highlight the increasingly vital role tourism plays in Saudi Arabia's economic landscape.
The data was released by the World Travel and Tourism Council’s (WTTC) 2024 Economic Impact Research (EIR).
Job creation soars
Employment within the sector also witnessed a significant increase, with 436,000 new jobs created, bringing the total to over 2.5 million. This accounts for almost one in five jobs in Saudi Arabia. The sector not only recovered jobs lost during the pandemic but also saw employment rise by nearly 24% from its previous peak.
Visitor spending hits new heights
Visitor spending reached new heights, with international spending skyrocketing by almost 57% to SAR 227.4 billion, breaking the previous record of SAR 93.6 billion. Domestic visitor spending also rose by 21.5%, totaling SAR 142.5 billion. Saudi Arabia welcomed 100 million tourists in 2023, seven years ahead of its target, and aims to attract 150 million tourists by 2030.
Global recognition and visionary leadership
Julia Simpson, WTTC President & CEO, commented on the sector's achievements, stating, "Saudi Arabia’s extraordinary tourism growth marks a pivotal moment in its journey to becoming a global leader. This success is a testament to the Kingdom's visionary commitment to blending cultural heritage with innovative tourism initiatives."
His Excellency Ahmed Al-Khateeb, Minister of Tourism of Saudi Arabia, emphasized the rapid success, noting, "Tourism is a key pillar of Vision 2030. We've made significant strides, with over $800 billion earmarked for investment by 2030, creating new jobs and boosting GDP."
Future projections
Looking ahead, Travel & Tourism in Saudi Arabia is expected to continue its rapid growth in 2024, with GDP contributions projected to reach SAR 498 billion and jobs increasing by 158,000 to nearly 2.7 million. International visitor spending is forecast to reach SAR 256 billion and domestic spending to SAR 155.2 billion.
Long-term outlook
By 2034, the sector is anticipated to contribute SAR 836.1 billion to the GDP, nearly 16% of the economy, and employ over 3.6 million people. In the broader Middle Eastern region, Travel & Tourism grew by more than 25% in 2023, with significant increases in jobs and spending, and is expected to continue this trajectory in 2024.