A Vision for Tourism Investment in Saudi Arabia

A Vision for Tourism Investment in Saudi Arabia Saudi Summit 2 nd May 2009 1

HRH Prince Sultan Bin Salman Bin Abdulaziz Al-Saud President & Chairman of the Board, Saudi Commission for Tourism & Antiquities (SCTA)

Encouraging Factors • Saudi Tourism Indicators • Saudi Tourism Landscape • 2020 Tourism Investment Vision • Airlines expansion • Airports expansion • SCTA Facilitation Role • Major Tourism investment Projects • Conclusions 1 • By 2020, the Saudi economy will be a diversified, prosperous, private-sector driven economy. • Extensive Area and Diverse Geographic Regions • Strong and Stable Economy • Coastal Regions – Red Sea and Arabian Gulf • Purchasing Power • Size and Diversity of Population

2008 Saudi Tourism Indicators • Encouraging Factors • Saudi Tourism Indicators • Saudi Tourism Landscape • 2020 Tourism Investment Vision • Airlines expansion • Airports expansion • SCTA Facilitation Role • Major Tourism investment Projects • Conclusions 2 • • • Total No. of visitors 47 Mn Tourism Revenue (receipts) SR 40 Billion Tourism Share / GDP- Excluding Oil (%6. 9) Tourism capital investment SR 16 Bn Total Tourism employment 1, 114, 070 Ø Direct 445, 628 Ø Indirect (1. 5) 668, 442 Source: MAS, SAMA, WTTC

2008 Saudi Tourism Landscape • Encouraging Factors • Saudi Tourism Indicators • Saudi Tourism Landscape • 2020 Tourism Investment Vision • Airlines expansion • Airports expansion • SCTA Facilitation Role • Major Tourism investment Projects • Conclusions • 24 Domestic and 4 International Airports • 1503 Travel Agents 60 Tour Operators • 1148 Hotels (117, 096 Hotels Rooms) • 4231 Furnished Apartments • 7902 Cultural Heritage Sites • 445 MICE Venues 92, 500 Events • 477 Shopping Malls • 5 Seaports, 1. 5 M Passengers • 65 Museums Source: MAS 3

2020 Tourism Investment Vision • Encouraging Factors • Saudi Tourism Indicators • Saudi Tourism Landscape • 2020 Tourism Investment Vision • Airlines expansion • Airports expansion • SCTA Facilitation Role • Major Tourism investment Projects • Conclusions 4 To facilitate an effective flow of investment to opportunities across Saudi Arabia that enables tourism to develop in an economically, socioculturally and environmentally sustainable manner, and ensures the long-term viability of the industry.

Saudi Tourism Investment Vision – Specific Goals • Encouraging Factors • Saudi Tourism Indicators • Saudi Tourism Landscape • 2020 Tourism Investment Vision • Airlines expansion • Airports expansion • SCTA Facilitation Role • Major Tourism investment Projects • Conclusions 5 • Increase the scale of private and foreign direct investment • Economic diversification • Job creation • SMEs development • Preserve cultural & heritage resources.

SCTA 2020 visitors Targets • Encouraging Factors • Saudi Tourism Indicators • Saudi Tourism Landscape • 2020 Tourism Investment Vision • Airlines expansion • Airports expansion • SCTA Facilitation Role • Major Tourism investment Projects • Conclusions Visitors Target by 2020 : 88 Million 6 Source: MAS

Present and future Hotels Rooms • Encouraging Factors • Saudi Tourism Indicators 254310 • Saudi Tourism Landscape • 2020 Tourism Investment Vision 197137 • Airlines expansion 117097 • Airports expansion • SCTA Facilitation Role • Major Tourism investment Projects • Conclusions Source: MAS 7

Tourism Capital Investment 2007 – 2020 (SR Bn) • Encouraging Factors SR Bn • Saudi Tourism Indicators • Saudi Tourism Landscape • 2020 Tourism Investment Vision • Airlines expansion • Airports expansion • SCTA Facilitation Role • Major Tourism investment Projects • Conclusions 8 Source: SAMA, WTTC

Airline Expansion • Encouraging Factors • Saudi Tourism Indicators • Saudi Tourism Landscape SAUDIA Expanding fleet from 117 to 245 • 2020 Tourism Investment Vision • Airlines expansion • Airports expansion • SCTA Facilitation Role NAS Expanding fleet from 9 to 129 • Major Tourism investment Projects • Conclusions SAMA increasing fleet From 7 -9 9

Airport Expansion • Encouraging Factors • Saudi Tourism Indicators • Saudi Tourism Landscape • 2020 Tourism Investment Vision • Airlines expansion • Airports expansion • SCTA Facilitation Role • Major Tourism investment Projects • Conclusions 10 • At least SR 47. 6 billion being invested across KSA airports. • 5 major airports under construction • 3 Airport cities : Jeddah , Riyadh & Damam.

• Encouraging Factors • Saudi Tourism Indicators • Saudi Tourism Landscape • 2020 Tourism Investment Vision • Airlines expansion • Airports expansion • SCTA Facilitation Role • Major Tourism investment Projects • Conclusions 11 SCTA Facilitation Role

Investor Support • 10 Provincial Tourism Investment Services • Saudi Tourism Indicators Centres • Saudi Tourism Landscape • Tourism Information & Research Centre (MAS) • 2020 Tourism Investment Vision • Financing Projects: • Airlines expansion Ø Financing SMEs • Airports expansion • SCTA Facilitation Role Ø set up tourism fund (planned) • Major Tourism investment • Facilitating and supporting the establishing of Projects tourism corporations by private sector, e. g. ( Al • Conclusions Ola company) • Encouraging Factors 12

Major Tourism Investments Projects Al Gemh Park • Encouraging Factors • Saudi Tourism Indicators • Saudi Tourism Landscape • 2020 Tourism Investment Vision • Airlines expansion • Airports expansion Promising Tourism destinations Thahban Wa Al Berek • SCTA Facilitation Role • Major Tourism investment Projects • Conclusions Fursan Island 13 Al Thumamah Wadi Lajab Hart Rahat

Al-Uqair Tourism Destination Eastern Province • Encouraging Factors • Saudi Tourism Indicators • Saudi Tourism Landscape • 2020 Tourism Investment Vision • Airlines expansion • Airports expansion • SCTA Facilitation Role • Major Tourism investment Projects • Conclusions 14 • Mixed use development. • Top quality beaches, historical structures, and abundant wildlife. • Land area : 100 million m² • Estimated development Cost: SR 40 Bn • Public- Private Partnership.

Souk Okaz Cultural Destination Al Taif • Encouraging Factors • Saudi Tourism Indicators • Saudi Tourism Landscape • 2020 Tourism Investment Vision • Airlines expansion • Airports expansion • SCTA Facilitation Role • Major Tourism investment Projects • Conclusions 15 • Mixed use development: rock garden, archaeological area, farms, museum… • Land area: 10 Sq Km • Estimated development Cost: SR 10 Bn

Heritage Hotels • Encouraging Factors • Saudi Tourism Indicators • Saudi Tourism Landscape • 2020 Tourism Investment Vision • Airlines expansion • Airports expansion • SCTA Facilitation Role • Major Tourism investment Projects • Conclusions 16 • Develop a high quality, commercially viable and internationally recognized heritage hospitality brand for the KSA, utilizing its unique heritage assets. • Convert more than 12 historical building owned by the government into heritage hotels. • Already received numbers of Expression of Interests from investors. • Forming a PPP heritage hotels Corporation

Conclusions • Encouraging Factors • Saudi Tourism Indicators • Saudi Tourism Landscape • 2020 Tourism Investment Vision • Airlines expansion • Airports expansion • SCTA Facilitation Role • Major Tourism investment Projects • Conclusions 17 • Strong economic, political and social foundations for growth of tourism. • Established and growing tourism facilities. • Increasing industry professionalism, standards and capability. • Wide range of investor support mechanisms.

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