Saudi Arabia's Tourism Revenue Soars 27.3% In Third Quarter

Riyadh: In a striking demonstration of Saudi Arabia's growing prowess in the tourism sector, spending by visitors surged to around 25 billion riyals ($6.67 billion) during the third quarter of this year, marking a robust increase of 27.3% compared to the same period last year. This significant rise represents the largest quarterly growth seen in over a year, surpassing figures from the previous five quarters, as per the latest data released by the Central Bank.

This booming growth in tourist spending aligns well with ongoing efforts to diversify the kingdom's revenue streams, moving away from traditional oil-dependent sources. Saudi Arabia's strategic push under its National Transformation Program has notably pivoted towards energizing the tourism sector, already observing a palpable impact on both local and foreign expenditure within the country.

Despite the impressive inflow, the Financial Analysis Unit of Al-Eqtisadiah newspaper highlighted a deficit of about 1.3 billion riyals ($346 million) in the travel item of the Saudi balance of payments for the third quarter. This gap attributes to a dramatic increase in outbound tourism expenditures, which hit roughly 26.3 billion riyals ($7 billion), signaling a vibrant participation of Saudis in international travel.

For the first nine months of 2024, inbound tourism spending reached an impressive 117.6 billion riyals ($31.36 billion). The sector achieved a near 12% growth rate on an annual basis, underscoring a resilient recovery and expansion phase post-pandemic.

Looking forward, the economic impact of tourism is set to create profound ripple effects across the Saudi economy. The World Travel and Tourism Council (WTTC) forecasts the sector's contribution to the kingdom's GDP to escalate to 498 billion riyals ($132.8 billion) by the end of 2024. Moreover, escalating employment opportunities within the sector are expected, with over 158,000 new jobs anticipated, increasing the total to 2.7 million positions.

Saudi Arabia's dynamic shift towards boosting its tourism sector is thus not just reshaping its economic landscape but also positioning the kingdom as a formidable player in the global tourism industry. As the country continues to host a range of cultural, entertainment, and business events attracting visitors worldwide, the future looks promising for this desert nation turning into a tourism hotspot on the global map.