Inbound tourism is a major contributor to Saudi Arabia’s commercial and economic dynamism. Industry observers project investments in Saudi travel and tourism to stand at SR150 billion in 2014 wherein SR50 billion would come from domestic tourism and SR100 billion from inbound tourism.

Saudi domestic tourism has grown significantly of late, whereby spending soared from SR59 billion in 2010 to SR103 billion in 2014 thereby becoming an economic generator that can be included in the list of sustainable investment opportunities.

Investments in the hotel and hotel apartment sectors are also projected to reach more than SR95 billion over the next ten years.

Tourism, especially in connection with Haj and Umrah, is a major source of revenue in Saudi Arabia and an economy mainstay because of the distinctive religious features that makes the Kingdom stand out among all countries worldwide; the two holy mosques and other holy sites to which millions of Muslims flock from different parts of the world to perform Haj and Umrah throughout the year. Since the Umrah season started this year, the number of Umrah pilgrims stood at over 7 million by the month of Ramadan 1435H. The availability of the required infrastructure has boosted growth opportunities in Haj and Umrah services coupled with other amenities that help develop the industry.

The number of pilgrims, which stood at 2 million in 2013, is expected to increase to 5.2 million by 2025. The increase in the number of pilgrims partly depends on an increase in facilities such as the expansion of the airport in Jeddah, which is expected to accommodate 80 million people by 2035.

The current plans to extend the northwestern and northeastern parts of the holy mosque will help to accommodate over 2.5 million people. The Prophet’s Mosque will also be expanded to accommodate between 600,000 and 1.6 million people once completed by 2040.

Anees Moumina, CEO, SEDCO Holding Group, said: “Investments are undoubtedly projected to increase in the coming period, including the construction of 100 hotel towers worth SR18 billion close to the holy mosque in Makkah, which will add 24,480 hotel rooms in Makkah alone. This approach to development confirms that the Kingdom’s tourism industry has become a major source of revenue — in line with Custodian of the Two Holy Mosques King Abdullah’s vision of enabling around the year Umrah.”

Hotels largely dominate the hospitality industry in Makkah, accounting for 96 percent of all accommodation.

Elaf, a major company in the travel, tourism and hospitality industries, especially in Makkah, Madinah and Jeddah, intends to implement expansion plans in the travel, tourism and hospitality industries by 2015.