Saudi Arabia plans to start a tourism development fund with an initial $4 billion investment, according to reports citing an announcement from the Ministry of Tourism.
The new “Tourism Development Fund” will launch “equity and debt investment vehicles to develop the tourism sector in collaboration with private and investment banks,” according to a ministry statement. The Tourism Development Fund also has $45 billion in memorandum of understandings signed with private banks, Bloomberg reports.
“Funding will be deployed to support mixed-use destinations, to address gaps in the tourism value chain, and to enable technologically-enhanced tourism,” according to the Ministry.
Saudi Arabia’s pristine Red Sea coast is set to become an attractive destination for Saudis and international visitors alike.
Like others around the world, the Kingdom’s tourism industry has been devastated by the Coronavirus pandemic. Although the Kingdom recently re-opened fully, with authorities allowing all economic and commercial activities to resume, bans on international travel and religious pilgrimages will not change.
The stall in tourism is a setback for Saudi Arabia, which is aiming for tourism and travel to contribute up to 10% of its annual GDP and create more than 1 million jobs by 2030.
Saudi Arabia is not only investing heavily in the sector, it is completely revamping its major cities, restoring historic and culture sites, and building entirely new destinations for future visitors.
According to Bloomberg, the Ministry of Tourism also said the launch of the Tourism Development Fund is part of the first phase of the National Tourism Strategy, which focuses on developing and enhancing 38 sites across seven destinations by 2022. Tourism Development Fund board members are: Princess Haifa Mohammed Al Saud, vice minister of strategy and investment at the Saudi Ministry of Tourism; Ihsan Bafakih, governor of the Real Estate General Authority; Stephen Groff, governor of the National Development Fund; Mohammed Omran Al Omran, member of Saudi British Bank board; and Mohammed Al-Hokal, member National Commercial Bank board.
