Saudi Arabia is urging global travel trade professionals to capitalise on its booming tourism industry even as new airlines, airports and projects continue to begin operations.
“I can tell you we haven’t even started,” Fahd Hamidaddin, Saudi Tourism Authority CEO told
TTN at ITB Berlin this year, discussing visitor numbers to the Kingdom.
Saudi Arabia topped 100 million tourist visits last year, with nearly 30 million international arrivals, the Kingdom’s Tourism Minister Ahmed Al Khateeb said at the annual World Economic Forum meeting in January. As the country diversifies its economy away from a reliance on hydrocarbons, it wants international tourists to cross 70 million by 2030. The figure would put it among the world’s top seven tourist destinations.
“We’ve been witnessing double-digit growth,” Hamidaddin said. Growing at the same scale will be a challenge, he acknowledged, but expressed confidence that new tourism offerings would sustain the momentum. “Usually destinations grow with airlines, they grow with airports…and none of our new airlines have started, nor have existing airlines gotten their new fleets. So, we have the highest pipeline of [flight connections] and our airlines are eager to grow exponentially as they as we start receiving those aircrafts.”
If you think you know Saudi, think again. Because Saudi Arabia today is not what it was yesterday, with the pace of growth… if you're waiting to see what happens, then the train is passing you
– Fahd Hamidaddin
Riyadh Air, a new full-service international carrier based in the Saudi capital, is set to commence operations in the third quarter of this year. It has 60 Airbus planes on order. And last year, flag carrier Saudia, meanwhile, announced 105 Airbus A320neo-Family planes and 49 Boeing 787 Dreamliners to support its expansion.
Saudi Arabia had one of the largest stands at ITB Berlin, reflecting that Europe is a priority inbound market. European and American visitor arrivals to the Kingdom grew 24 per cent last year, Hamidaddin said. Spending from these markets jumped by 40 per cent, reaching SAR30 billion ($8 billion).
“This first tells you that the demand to the destination is on the rise and secondly, so is the spend. It's indicative that the type of travellers we're getting are the right ones,” he said, adding that positive experiences help drive repeat visits.
30 NEW PARTNER AGREEMENTS
The STA’s tourism strategy relies on expanding ties with the trade.
“We're signing, I think, 30 new agreements this year with European trade partners,” Hamidaddin said.
Issuing a strong message to the travel trade, he said agents should act now to create new products and design itineraries around the Middle Eastern country–or they would miss out on one of the fastest-growing tourism markets in the world.
“If you think you know Saudi, think again,” he said. “Because Saudi Arabia today is not what it was yesterday with the pace of growth… if you're waiting to see what happens, then the train is passing you.”
DIVERSE PRODUCTS FOR DIFFERENT MARKETS
The country has created a differentiated tourist offering, including heritage, luxury, events and demographic-specific travel. “About 40 per cent of our international visitors were women last year. This is the highest ever. We’re seeing hyper-growth there.”
Women now make up the majority of solo travellers at 71 per cent, global luxury travel network Virtuoso reported last year.
In November, Melbourne-based Intrepid Travel launched its 12-day Women’s Expedition to Saudi Arabia for international travellers. Besides Riyadh and Jeddah, the tour also takes in heritage sites in Madinah and Hegra (Mada’in Saleh). The itinerary supports businesses run by women and offers travellers a way to connect with Saudi women in a way that isn’t possible in mixed groups.
Family travel will also get a boost this year when the Six Flags and Aquarabia theme parks open in Riyadh’s Qiddiya City in late 2025. Six Flags promises five record-breaking rides, including Sirocco Tower, the world's tallest free-standing shot tower ride, Gyrospin, the tallest pendulum ride, and Iron Rattler, the tallest tilted coaster.
Hamidaddin believes events will continue to be a major draw for travellers. “Riyadh hosted more events per week than Las Vegas did last year,” he said, referencing the city’s expanding global events calendar.
An estimated 450,000 people attended Soundstorm over three nights last December, making the electronic dance music festival one of the world’s largest events in its category. Likewise, the country’s two art biennales in Jeddah and Diriyah rank just behind the Venice Biennale in terms of visitor numbers. Some 150,000 people attend the annual Formula One Saudi Arabian Grand Prix, although official numbers for 2024 haven’t been published.
“You see a lot of repeat travellers are just coming in and out for those events. They stay a night,” he added. “And so, for us, it is very important to reach and generate repeat domestic, regional and international travel.”
AI-DRIVEN TOURISM GROWTH
Digital innovation is essential to attracting tourists, he said. One example is the ‘Saudi Partner’ platform on the Visit Saudi website. Visitors at ITB were able to see how agencies and tour operators can use the matchmaking tool to connect with local suppliers.
Similarly, the STA is using customer data and artificial intelligence to create personalised marketing campaigns to reach individual travellers.
In August, the STA launched a tourism data lab in partnership with payments company Visa to make data-driven forecasts on travel trends. It has similar agreements with local digital solutions provider TAM Development and Sabre Corporation.
Hamidaddin described the collaborations as part of an active engagement to build the tourism business of the future. “With our investment and our greenfield approach, we can be that lab environment for many of our trade and technology partners.”
The term ‘greenfield’ indicates how the Kingdom must create most of its travel and tourism products from scratch unlike markets with legacy offerings. Saudi Arabia only began issuing tourist visas in 2019.
The Saudi tourism sector has much to offer the trade, he said, particularly for early movers. “The opportunities are there to grab. Dig deep, invest more time in Saudi with the right people, and STA will always be your best partner,” he said.
