RIYADH, 11 August — Saudi Arabia’s fast expanding tourism sector, estimated to be worth more than SR30 billion, is likely to attract billions of riyals of foreign and domestic investments in the coming years.
A recent economic report issued by Saudi British Bank said that the Kingdom’s tourism sector is one of the best areas to promote foreign investment.
The bank expects that lucrative investment prospects in the sector will accelerate the repatriation of billions of dollars invested by Saudis abroad.
International tourism made remarkable progress during the second half of the 20th century. It is expected to become the world’s largest industry in the near future, overtaking cars, iron and steel and electronics.
In 1998, the report said, about 635 million Saudis traveled to foreign countries and spent some $439 billion. The sector contributes 11.7 percent of the global domestic product.
The International Tourism Organization expects that 5.5 million new jobs will be created every year throughout the world until 2010 due to growth in tourism.
The bank underscored the Saudi government’s efforts to promote domestic tourism and said boosting tourism is an important means of diversifying the economy.
Saudi Arabia has established a tourism commission under the chairmanship of Prince Sultan, second deputy premier and minister of defense and aviation, in its bid to strengthen domestic tourism.
The government is encouraging businessmen to invest in tourism projects and has spent more than SR110 billion to prepare the infrastructure required for tourism.
There are three million Saudis and a large number of expatriate workers who spend their holidays abroad.
The Kingdom has already launched a major drive to expand tourism by allowing tourist visas, extending the period of Umrah visas and allowing pilgrims to visit other parts of the Kingdom.
“If the Haj pilgrims, estimated at more than one million, were allowed to stay one week longer in the Kingdom, they would increase their spending by SR5 billion and this would create more jobs for Saudis,” the bank report said.
Spelling out the features that are likely to bring more tourists to the country, the bank said they included the hospitality of Saudi people and the country’s stunning natural environment.
