Recently, the member states of the Gulf Cooperation Council (GCC) announced plans to launch a regional tourism visa program called "GCC Grand Tours" by the end of 2024. This initiative will allow tourists to enter all six member countries multiple times with each stay lasting up to 30 days.
The program, unanimously approved in October 2023, is expected to be fully operational by the end of the year. Saudi Arabia, as the largest economy in the Middle East, has not only propelled this plan but also inspired other Middle Eastern countries in the development of their tourism sectors.
In its national development strategy "Vision 2030," Saudi Arabia aims to transform itself into a major global tourist destination, planning to host 100 million visitors by 2030. Ahmed Al Khateeb, the Saudi Minister of Tourism, announced at the 10th China-Arab States Cooperation Forum in 2023 that Saudi Arabia will invest over $800 billion in the next decade to develop its tourism sector, aiming to increase tourism's contribution to the GDP from the current 4.45% to 10%. According to data released in March 2024, Saudi Arabia hosted 106 million visitors in 2023, a 56% increase from 2019. Moreover, the latest data from the United Nations World Tourism Organization shows that Saudi Arabia is the fastest-growing tourist destination among the G20 nations, with a growth rate of 121%.
With strengthening economic and political ties between China and Saudi Arabia, Chinese tourists have become a key focus for Saudi Arabia's tourism industry. China was among the first batch of countries eligible for Saudi tourist visas in 2019; by 2023, Saudi Arabia had welcomed 100,000 Chinese visitors and plans to increase this number to 5 million by 2030. Additionally, Saudi Arabia is introducing more facilitative measures to attract Chinese tourists, including considering visa exemptions, partnerships with Alipay and Ctrip, the initiation of the "Beijing Daxing-Riyadh" airline route, and the availability of UnionPay in over 60% of Saudi merchants. Clearly, the Saudi tourism industry is eager to welcome Chinese tourists and capture this significant market opportunity.
Saudi Arabia boasts a rich variety of tourism resources, including historical heritage, natural landscapes, and modern entertainment and environmental projects, attracting diverse tourists. The country is home to seven UNESCO World Heritage Sites and is actively developing major tourism projects like NEOM and the Red Sea Project to draw a broad spectrum of travelers.
Despite the positive outlook, the Saudi and broader Middle Eastern tourism industry face challenges that necessitate an evaluation of the risks associated with these destinations. Saudi Arabia's tourism sector, still in its developmental stages since opening up to international leisure tourism in 2019, urgently needs improvements in resource development, transportation, amenities, and international promotion. Its tourism projects and infrastructure are still under construction, with significant projects underway, but the overall national infrastructure is lacking, without a unique urban texture, leading to a disjointed tone between attractions and national character.
Beyond infrastructure deficiencies, Saudi Arabia's longstanding international image, shaped by its adherence to Wahhabi doctrine—a conservative form of Islam—presents a significant barrier to attracting international tourists. In Riyadh, most local women continue to wear long black robes reaching their ankles, reflecting a conservative social atmosphere. Additionally, the recent conflict between Palestine and Israel has raised concerns about safety in the broader Middle Eastern region.
In the face of Saudi Arabia's tourism resources and developmental challenges, the market currently offers two potential opportunities: business inspection tours and theme-customized tours. Business inspection tours have been driven by Saudi Arabia's economic reforms, attracting entrepreneurs seeking business opportunities. Theme-customized tours offer solutions to the sparse inter-city transportation catering to tourists. Furthermore, the development of Saudi Arabia's tourism industry also provides opportunities for Chinese businesses, such as investing in hotels and resorts, developing digital solutions for tourism, and participating in large government-promoted tourism projects. As Saudi Arabia gradually opens its tourism sector, the demand for related services and products continues to grow.