Domestic tourism is in need of more investments from the private sector especially with several Saudi cities having succeeded in attracting local tourists, Abdullah Salem, the tourism sector manager at Al-Rowabee Center for Economic studies told Arab News.

“Jeddah and Dammam are the most popular tourist destinations for local visitors. However, these cities need huge investments from the private sector to create more entertainment venues,” he said.

He pointed out that the demand on the domestic tourism sector had increased by 25 percent in the last two years leading to a hike in the prices of resorts and entertainment venues in Jeddah and Dammam.

“Fewer than 25 percent of Saudi businessmen have made investments in the local tourism sector,” Salem said, adding that the ongoing developments in the local infrastructure in the major Saudi cities had played a big role in attracting local tourists.

According to a report by the Tourism Information and Research Center (MAS), there will be a 10 percent increase this year in incoming tourist flights compared to last summer. It added that about 4.8 million visitors were expected to visit the different cities for tourism. It is estimated that domestic tourism spending this year will reach SR10.5 billion, 18 percent more than last year’s SR8.9 billion.

However, the local tourism sector contributes to only 2.6 percent of the Saudi economy. A recent report released by the Saudi Commission on Tourism and Antiquities (SCTA) indicates that Saudi Arabia’s tourism sector is set to create 1.7 million jobs over the next six years.

“The Saudi hospitality sector is earmarked to attract the most investments from the private sector. Seventy percent of the hospitality investments in the Kingdom are centered in the two holy cities of Makkah and Madinah. This is expected to grow in addition to increased investments in hotels, particularly the three-star category, resorts and upscale furnished apartments in other major cities of the Kingdom in the future,” Youssef Adnan, deputy chief of a real estate company told Arab News.