29/08/2015
The tourism sector in Saudi comes second in saudization rate
All the efforts that the kingdom of Saudi Arabia has been putting to improve the tourism in the country has been paying off. The improvement of the sector was evident through the evaluation of world tourism organization. Aliktisad – a magazine issued by Asharqia chamber- has listed in its August 2015 issue a number of investment opportunities in the Saudi tourism sector. The sector is flourishing because the tourism infrastructure strongly supported by the government, which has helped in the growth and rise of the sector as well as its contribution to the local revenue.
The issue was titled “Saudi tourism, new investment opportunities and multiple income streams”. According to the report, the tourism sector contributes to the total local revenue of Saudi with 2.7%, and 5.2% of the total revenue of the non-petroleum sector. It was noted that Saudi has taken up 15.3 of the tourism revenue in the Middle East, which received 5% of the total of tourists during 2014, estimated at 1.13 billion, with a 4.3 growth rate.
According to Master Card index of the global destination cities, Riyadh has become third in the most visited cities in the Middle East and Africa, with 4.3 visitor. The yearly growth rate was 18%, and Riyadh was amongst the top five cities that attract many visitors. The report added that the tourism sector in Saudi has witnessed a huge growth in 2015. Saudi has become 64 globally according to the Travel and Tourism Competitiveness Index of 2015, surpassing other tourist destinations of the Middle East like Tunisia, Egypt, Lebanon, Kuwait, Algeria and Yemen. This progress can be attributed to the strong business environment, strong infrastructure and the high safety standards. Saudi aims to progress to the top 50 within the next years. Given the current local and overseas data, such progress is attainable. Saudi is slowly attaining a place in the touristic map, which is the result of the efforts that are being invested in training human resources in the local tourism sector according to the global standards. As well as signing deals, to develop all the policies and systems that are connected to the sector, and participating in many regional and international events.
The magazine has pointed out the government is focusing on the tourism sector, and considers it an essential to the future of tourism in Saudi. The interest in tourism is evident as of the latest decision of changing the name of the Saudi commission for tourism and antiquities to the Saudi commission for tourism natural heritage, to assert on the importance of the Saudi heritage. This interest from the government in tourism stems from its significance to the economy, especially when it comes to creating job opportunity to Saudis. Job opportunities in the tourism sector has reached 751 thousand job until last year; Saudis represent 27% of the workers in that sector. Moreover, it is considered as the second sector with the highest rate of Saudis. The Saudi commission for tourism natural heritage has mentioned that the job opportunities rate is expected to grow between 2010/2020 by 10% yearly compared to the yearly growth rate of the same period, which is estimated by 2.5%, it is expected that by 2020, the job opportunities in the tourism sector will reach 1.7 million job. That number includes direct and indirect jobs, as in jobs in other sectors and fields that are related to tourism, like restaurants, transportation, and building any tourist facilities, gifts shops and all the tourism service providers. Job opportunities are assumed to reach this number in the tourism sector and the related sectors in case there was a lack of support for more growth and expansion in tourist investments, according to studies conducted by the Saudi commission for tourism natural heritage. Thus, those jobs will be just the result of the expansion that is expected to the sector and it will not be by creating new jobs.
The magazine has reported that one of the signs that tourism in Saudi is growing is the global recognition that it is getting. The United Nations Educational, Scientific and Cultural Organization (UNESCO) has enlisted the cave paintings that were found in Hail, Saudi to the list of world heritage during their 39th meeting in Bonn, Germany. This is considered as the fourth location in Saudi to be added to the list, which includes Mada'in Saleh, Diriyah, and Old Jeddah. Medina is also expecting a number of projects that are related to the historic sights. Amongst which is the project of a museum about the grand battles in the Islamic era, which is a joint effort between the ministry of defense and the Saudi commission for tourism natural heritage, according to orders from his royal highness, custodian of the two holy mosques, King Salman ibn Abdul-Aziz. Moreover, some work is being done to improve the locations of the significant battles of Badr, Uhud and Battle of the Trench, as well as all the historic mosques that are related to the prophet peace be upon him, and his caliphates. The expansion includes other projects such us expanding the Medina museum in the train station and the Noble Quran Oasis.
The report has also mentioned that tourism is considered now the largest service sector globally. It takes up to 40% of the global service industry, and 11% of the international exports revenue of commodities and services. It is also considered as the first source of foreign currency for about 38% of the countries around the world, which places the sector in the leading position over other economic sectors since it makes it one of the main income sources. Tourism attracts investments as well, and create more jobs in the market, which leading to rise the income level and create a thousand of job opportunities, especially in countries where tourism is given enough attention and priority when it comes to development. Tourism is expected to contribute to the job market by creating more than 337 million job opportunity globally by 2020. The new strategic plan of the Saudi commission for tourism natural heritage relies on improving the human resources in the sector and provide more job opportunities for Saudi nationals.
The magazine had a report on the oil market. It mentioned that despite Saudi being the biggest exporter of oil globally, the country did not suffer any dire consequences of the oil price drop, quite the contrary; Saudi handled that in a distinguished way. Reports from esteemed economic firms prove that Saudi was an example of facing such ordeals. The Saudi economy did not suffer, but with the guidance of his highness, King Salman ibn Abdulaziz it continued to thrive, and thousands of job opportunities were created. According to the aforementioned reports, the Saudi market is considered a destination for any global investor who wants direct exposure to the market. Along with the country’s large size, it has many factors that makes it attractive to foreign investors. There is a high cash flow compared to the other markets whether regional or developing.
The magazine has discussed cybercrime. The report asserted that cybercrime is the next threat because it is fast growing. Experts mentioned that cybercrimes are a threat to the global economy in general and to the future of e-commerce in the Arab world and Saudi in particular. Since the number of internet users that shop online and make money transactions and well as save their personal details is vastly growing. It mentioned that hackers often find their victims through emails, malwares, as well as phone calls and stealing information from the credit cards, and debit cards.
In the “man and era” report, the magazine talked about salman ibn muhammad balghonaim, and described him as the pioneer of "Bisht” industry – man cloak- in Saudi Arabia.
