Tourist spending in Saudi Arabia has witnessed a significant surge in the first quarter of 2024, marking a positive trend for the kingdom's tourism industry. According to data released by the Saudi Central Bank, inbound visitor expenditure reached a staggering $12 billion (SAR 45 billion), reflecting a year-on-year increase of 23%. This growth aligns with Saudi Arabia's ambitious Vision 2030 strategy, which prioritizes economic diversification and positions tourism as a key driver of growth.
The positive trend extends beyond visitor spending. The travel account balance of payments, which encompasses both expenditures by foreign tourists visiting Saudi Arabia and spending by Saudi residents traveling abroad, recorded a surplus of $24 billion. This figure represents a significant 46% increase compared to the first quarter of 2023, highlighting a potential shift in travel patterns and a growing appeal of Saudi Arabia as a tourist destination.
This upsurge in tourism spending is attributed to several factors. The kingdom has implemented various initiatives to enhance its tourism offerings, including the development of mega-projects like NEOM, a futuristic city envisioned as a global hub for innovation. Additionally, Saudi Arabia boasts a rich cultural heritage and historical sites, attracting visitors interested in exploring the country's unique past. The focus on promoting these cultural and historical treasures has broadened the tourism sector's appeal beyond religious pilgrimage trips.
Furthermore, Saudi Arabia has undertaken significant efforts to improve its tourism infrastructure. The development of modern transportation networks, including new airports and high-speed rail lines, facilitates easier access to various tourist destinations within the kingdom. Additionally, the country has witnessed a rise in luxury hotels and resorts, catering to the growing segment of high-spending tourists.
The positive outlook for Saudi Arabia's tourism industry is bolstered by a recent World Economic Forum study. The study predicts a global rebound in international tourist arrivals and the travel sector's contribution to global GDP, reaching pre-pandemic levels in 2024. This aligns with Saudi Arabia's goal of becoming one of the top 10 global tourist destinations by the end of the year, further solidifying its position as a key player in the global tourism landscape.