Whitepaper DESTINATION SAUDI The Impact of Vision 2030 Kingdom of Saudi Arabia Destination Saudi — Leisure, Culture and Tourism Potential Accelerating success. “We will support promising sectors and foster their success so that they become new pillars of our economy… Seán Young Head of Destination Consulting | London In the tourism and leisure
[email protected] sectors, we will create attractions that are of the highest international standards, improve visa issuance procedures for visitors, and prepare and develop our historical and Imad Damrah heritage sites.” Managing Director | Saudi Arabia
[email protected] Vision 2030 With Vision 2030 identifying the potential for entertainment and cultural development, and with significant growth forecast in domestic tourism, is Saudi Arabia set to see an unprecedented growth in its leisure and cultural offer? 2 Destination Saudi – Leisure, Culture and Tourism Potential | 2017 | Kingdom of Saudi Arabia Despite slightly lower projected growth rates than historical levels, the annual rate of population growth in KSA should stay above 2% for the foreseeable future. This is expected to be a boom for the retail sector as population has a direct effect Tourism in KSA on potential market size. 9.2% Domestic Tourism – Purpose of Visit 2013 8% Total contribution of 8% 15% 13% of total GDP in 2015 and forecast to rise 7% Leisure to 9.2% in 2026 VFR 35% Religious Business 30% Other Source: MAS, 2014 2015 2026 Domestic tourism forecasts Domestic Tourism – Purpose of Visit 2020 2015 2020 CAGR 10% Tourists 46.5m 66.2m 7.4% 5% Spend (SAR) 47.9bn 82.6bn 11.5% 30% Source: MAS, 2016 Leisure VFR 30% Religious Inbound tourism forecasts Business 25% 2016 2026 CAGR Other Tourists 20.2m 32.3m 4.8% Spend (SAR) 32.8bn 55.9bn 5.2% (Source: WTTC, 2016) Source: Colliers International Estimate, 2016 Destination Saudi – Leisure, Culture and Tourism Potential | 2017 | Kingdom of Saudi Arabia 3 There is a positive outlook for tourism in Saudi Arabia, with strong growth forecast and a wave of investment underway.