RIYADH, 21 September 2003 — Though tourism contributes only 8.8 percent to the Kingdom’s gross domestic product, a study by the Supreme Commission for Tourism (SCT) anticipates a higher contribution once tourism-related projects are functioning.
SCT now plans to launch a tourism fund that would require investments of SR200 billion. The details will be made public by Prince Sultan ibn Salman, secretary-general of SCT, who is now in Dubai for an investment seminar.
According to the study, Saudis constitute only 7 percent of the 12,516-strong work force in the tourism industry. The study stresses the need for education and training at secondary, university and postgraduate levels to attract Saudis.
An SCT spokesman said that the decision had been taken to establish the fund for tourism-related projects linked to hotel accommodation and infrastructural development.
The Kingdom currently receives three million pilgrims annually for Haj and Umrah.
The government has adopted a new strategy, targeting foreign tourists and encouraging Saudis who vacation abroad to spend their holidays in the Kingdom. Before Sept. 11, 2001, Saudis spent some SR40 billion on their annual holidays with the US as a major destination.
Another SCT study showed that 77 percent of Saudis take trips inside the Kingdom every year. The study included 1,500 Saudis. It indicated that Saudis travel within the Kingdom for vacations, performing Haj and Umrah and for visiting friends and relatives.
The study also showed that a large percentage of Saudis had gone on both international and domestic trips during the last 12 months. The percentage for domestic tourism was 77 percent, which shows that it is a good opportunity for investment and development.
According to the study, a Saudi citizen spends on an average about SR217 per day. Shopping accounted for 31 percent, followed by accommodation 21 percent, food and beverages 18 percent each, transportation 15 percent and recreation 9 percent.
