JEDDAH, 2 May 2007 — Saudi Arabia will license 15 tour operators next month as part of its efforts to woo foreign tourists to the country, according to Prince Sultan ibn Salman, secretary-general of the Supreme Commission for Tourism (SCT).
He also spoke about a government strategy to increase the tourism industry’s share in the country’s gross domestic product from six to 16 percent by 2020.
According to statistics provided by government sources, the Kingdom’s tourism sector, including Haj & Umrah services, currently contributes six percent to the GDP or SR55 billion ($14.6 billion).
“We’ll license 10 to 15 companies next month to operate tourist programs,” Prince Sultan was quoted as saying by Al-Watan Arabic daily, while addressing the third Arabian Hotel Investment Conference in Dubai on Monday.
He explained the measures taken by SCT to promote domestic tourism including efforts to establish tourist facilities on the Red Sea coasts and implementation of new laws to improve hotel services.
Sultan said the total capacity of hotels in the Kingdom increased to 104,000 rooms in 2005, adding that Saudi hotels and furnished apartments generate SR11.2 billion annual revenues.
“We expect the revenue of the hospitality sector to reach SR14.29 billion by 2010 and SR21.78 billion by 2020. We also expect the sector to make an annual growth of four percent, in terms of increasing hotel rooms,” he said.
By the year 2010, the number of hotel rooms in the Kingdom will reach 127,000 and 194,000 by 2020, Sultan said, and urged businessmen to make use of the Kingdom’s promising hospitality market.
The SCT chief stated that Saudi Arabia was not planning to become a popular tourist destination like Dubai or Lebanon or Malaysia. “We have a lot of distinguished products to present,” he said.
Sheikh Ahmed ibn Saeed Al-Maktoum, president of Dubai Civil Aviation and chairman of Emirates Airline, in the presence of Sultan, yesterday opened the Kingdom’s pavilion at Arabian Travel Market 2007 in Dubai International Convention & Exhibition Center.
“I am proud of Saudi Arabia’s participation in the Arabian Travel Market exhibition,” Sheikh Ahmed said, adding that it would contribute to encouraging tourist traffic between GCC countries.
Speaking to reporters on the occasion, Prince Sultan highlighted Saudi Arabia’s investment-friendly climate, supported by its sound economy and political stability.
He also explained the efforts made by the SCT over the past years to develop the Kingdom’s tourism industry, in terms of promoting a culture of tourism among Saudis and carrying out a large number of tourism projects.
He disclosed plans to decentralize tourist activities by transferring more powers to regional authorities. “We hope that this decentralization process will be completed within two years,” the Saudi Press Agency quoted the prince as saying.
Sultan emphasized the importance of Saudi Arabia’s participation in the Arabian Travel Market, saying it would help promote the Kingdom as a major tourist destination in the region. “A large number of GCC tourists consider Saudi Arabia as a suitable place to spend their holidays,” he said.
Sultan said the SCT would hold a major travel and tourism exhibition by the middle of next year. “We have already received approval from higher authorities to hold the show, which will be equivalent to the size of Arabian Travel Market,” he said.