Travel sector growth to climb to $ 11.4 billion

Saudi Arabia’s travel market is expected to grow to $11.4 billion in 2014 compared to $10.2 billion 2012, an increase of 4 percent, according to a study by Global Market Research Company PhoCusWright.
The organization also described Saudi aviation market as mature and stable. It is growing by 2.6 percent every year with low-cost airlines expected to grow by 7.6 percent annually from 2012 to 2014.
Figures for 2013 are pending.
The study also showed that 26 percent of the users of smart phones in Saudi Arabia use them to obtain travel information and book and purchase flight tickets. About 25 percent of all 2012 travel reservations in the Kingdom were done online. Smart phones constitute 60 percent of used mobile phones in Saudi Arabia according to the study.
However, some officials from the travel industry think the numbers are exaggerated and based on inaccurate information. Chairman of Al-Tayyar Travel Group, Nasser Al-Tayyar, said he cannot confirm the projected numbers in the report, adding that $11.4 billion is too high a volume for the sector in the Kingdom to reach in 2014.
He thought the numbers are theoretic and not based on the Saudi market and system. However, he thought if Saudi Arabia implements the e-commerce system, these projections could be correct.
“E-commerce would represent a powerful purchase tool,” he said.
Al-Tayyar called on the authorities to give more attention to domestic tourism, saying that the lack of a tourism industry the main factor for the increase in the number of travelers taking off to spend their vacations abroad every year. “It is a human nature to change the place.”
Muheeb, marketing director at Elaf Travel, thought the projected numbers are reasonable and “they might be higher.” He said Saudis traveling abroad are increasing. “Saudis pay a lot to travel and visit countries abroad,” he said.
Khaled Ba Fadl of Fursan Travel says most people book and purchase tickets online, adding that one airlines had a revenue of almost one billion riyal. He estimated that domestic and abroad tourism in Saudi Arabia increased by about 25 percent, adding that demand for traveling to Saudi Arabia is increasing in China and Europe.