Tourism and Saudi Arabia (page 1 of 3)

Most people don't think of vacationing in Saudi Arabia. Why?

Given the strength of the Saudi economy, by default a tourism sector emerged. Regarding tourism within the country, we did a lot of surveys concerning your statement that people don't tend to think of Saudi Arabia for tourism. We found out that about 60 percent of Saudi tourist expenditure is being spent in Saudi Arabia rather than outside the kingdom.

How will you get the remaining 40 percent?

I think the objective is not to get 100 percent, the objective is to develop a quality product to cater to Saudis, to cater to Arab visitors, to cater to Muslim visitors and to cater to special niche markets that are looking at the cultural heritage aspect of Saudi Arabia. The market is growing, so we're trying to capture a bigger percent of a growing market rather than trying to capture the whole market. The portfolio will not allow us to cater to every whim or need. We know exactly the market that we're going after. But it will take time to start developing the products and to try to market these products in a manner that will be beneficial to the Saudi economy and the social objectives behind the creation of the Supreme Commission.

Did September 11th have an impact on local tourism?

September 11th definitely had an effect throughout the world. We see a lot of people traveling regionally and not going on long-haul flights. They're consciously or subconsciously trying to stay in an environment they'd be more comfortable in. The Arab world in general benefited from Saudi tourists going to Lebanon, Egypt, Syria, less so to Jordan and even Saudi Arabia. The tourism sector benefited from that, but it's too early to really tell.

What is being done specifically to encourage tourism?

The commission's role is to facilitate the growth of the sector, which means that we are working with the sector and the various regions to determine the supply and demand gaps, and identify the impediments that they are facing. If, for example, it's a land tenure issue, we deal with that. If it's a regulatory issue, we deal with that. But we try to deal with it on a national level rather than on a case by case basis.

What are the main problems that you have had to deal with?

The board gave us two years to study, to analyze, to develop a plan of action for the sector. Phase one has been finished, and the master plan was presented by the board, approved by the board and now it's with the Supreme Council. Phase one basically looks at where we are, where we want to go and what are the issues that need to be dealt with in the long term. It's a 20-year plan rather than a short-term plan.

What are your target markets - for both nationals and expatriates?

Our primary target market is Saudis and expatriates living in Saudi Arabia. The second target market is Muslim communities everywhere. The third target market is specialized niche markets, that is looking at the sociocultural, ecotourism, diving, that type of niche product.

We will focus on the regulatory framework and the institutional framework. The tourism sector is a micro-decision, the tourists decide to go to this place or that place, and the investor will decide to invest in this location or that location. We have to provide an institutional framework that will allow the sector to grow in the regions, in the cities, across the country. Our role is that of a coordinator because we have to look at partnership between the public sector with itself, we have to look at the partnership with the private sector and linking the private sector with the public sector.

What's the size of the tourist market in Saudi Arabia and how do you see it evolving?

The data shows that in 2000 there were 16 million tourist nights inside the country.