How Saudi, After Beating UAE, Has Become Tourism Icon Of The Year With Seventy-Three Percent Growth In The Travel Sector

Saudi Arabia has mainly emerged as a front-runner to become the Middle East's top tourist destination.

Under the ambitious Vision 2030 initiative, the Kingdom has experienced a prominent 73% growth in tourism as per the latest UN Tourism, catching global attention and surpassing its local neighbour, the UAE, which has long dominated the international tourism industry. The United Arab Emirates and mainly Dubai continue to attract millions of travellers with its luxury shopping, world-class infrastructure, and mega-events. Saudi Arabia's strategic focus on cultural, religious tourism and luxury developments reshapes the tourism landscape. By promoting its rich cultural heritage, futuristic mega projects and religious prominence. Saudi Arabia is drawing a border and a more varied audience that appeals to high-spending international tourists. The analysis explores the key factors driving Saudi Arabia's rapid increase and compares them with the UAE's steady and established approach to tourism growth. With both countries majorly investing in their tourism sectors, seeing closely reveals why Saudi Arabia is outpacing the UAE in attracting international visitors and becoming a global tourism powerhouse.

 Critical Components of Vision 2030 in Travel and Tourism Investment and Infrastructure Development

The Saudi government has set aside nearly $1 trillion to build its tourism infrastructure. This involves constructing 500,000 hotel rooms and significant projects like NEOM and the Red Sea Project. The project aims to attract tourists and keep Saudi Arabia a luxury destination competing with the UAE's premium offerings. The Red Sea Project features over 45 hotels and more than 8,000 rooms, thus creating a world-class destination with beautiful leisure facilities and natural reserves.

 Visa-free policies

Saudi Arabia allows visa-free entry for citizens of around 49 countries, making travel to the Kingdom more accessible as part of its efforts to boost tourism under Vision 2030. This includes nations such as Australia, Canada, the United States, and many European countries like Germany, France, Italy, and Spain. Visitors from China can also benefit from the visa-free policy alongside other nations such as Japan, South Korea, Russia and New Zealand. Visa-free entry extends to numerous Middle Eastern and European countries, such as Austria, Denmark, Norway, and Hungary. By providing visa-free access to these 49 nations, Saudi Arabia aims to attract a broader range of international tourists, supporting its goal to position itself as a major global tourism destination.

 Saudi Arabia's Global Travel Shift: Growth in Business, Leisure and Spiritual Travel

In Saudi Arabia, a landmark shift towards inviting people from across the globe has led to a dramatic increase in international visitor numbers, driving growth across business travel, leisure travel, and religious tourism.

Some visa restrictions and promoting the rich cultural and historical heritage alongside religious tourism. The Kingdom has opened its doors to broader customers than ever before. This transformation has created a booming tourism industry that appeals to corporate and leisure travellers, presenting prominent opportunities for global investors.

 Targeting Key Markets: Attracting High Spending Tourists.

Although the UAE often focuses on AMSS tourism, Saudi Arabia has strategically targeted high-spending travellers from key markets such as China, India and Europe. The emphasis here is on quality over quantity, allowing the Kingdom to avoid the over-tourism issues that more mature destinations face.

 Infrastructure Development: Luxury Accommodations Lead the Way

Out of the nearly $1 trillion investment, a substantial portion is allotted towards building 500,000 hotel rooms with projections suggesting portion is allocated towards building 500,000 hotel rooms, with forecasts suggesting that 150,000 to 200,000 new rooms could be added in just the next two years. This puts the UAE on notice as Saudi Arabia's emphasis on luxury accommodations quickly makes it a competitive force in the region's upscale tourism market. 82% of the new hotel developments are expected to be in the luxury segment.

 King Salman International Airport: A Game Cager for Saudi Arabia's Tourism Growth

Saudi Arabia is making gradual strides in expanding its aviation infrastructure. The development of King Salman International Airport in Riyadh is believed to have made it one of the biggest airports in the World. Once completed, the airport is expected to handle 120 million passengers annually, with plans to increase its capacity to 185 million by 2050.

 Giga Projects and Attractions: Cultural Heritage Meets Modern Tourism

Besides this infrastructure, Saudi Arabia invests in giga projects, highlighting its distinctive cultural heritage while providing tourists with memorable experiences. Some iconic projects, like Diriyah Qiddiya and the UNESCO World Heritage site of ALUla, are developed to provide authentic and indulgent cultural expertise that sets the Kingdom apart from the UAE's modern luxury-focused appeal.

 AlUla: Saudi Arabia's Cultural Crown Jewel

A tourism success in a region that perfectly mixes ancient history with modern luxury to attract domestic and international tourists. The Kingdom is actively promoting ALULa as a premier destination through numerous key strategies curated to compete with the UAE's established tourist appeal.

 Strategic Marketing Campaigns: Taking AlUla To The World

In February 2024, the Royal Commission for AlULa launched the global marketing campaign Forever RevitalizingRevitalizing. This campaign targeted high-potential markets like the UK, France, Germany, Italy, the US, China, India and the GCC to increase international visitor numbers from 35% to 45% by 2024.

The initiative outlines Saudi Arabia's strategy for attracting high-value travellers who seek cultural and natural experiences, distinguishing AlULa from the more modern attractions of the UAE.

The Royal Commission for AlULa aims to attract 291,000 visitors in 2024 and 380,000 by 2025, building on the 263,000 visitors recorded in 2023.

 Infrastructure Development: Expanding for the Future

The infrastructure plan aids in ALULa's growth as by the end of 2024, the region aims to increase hotel capacity from 824 rooms to 1300, further expanding to 5,500 rooms by 2030 and 8,500 by 2035. This includes new openings like Dar Tantora The House Hotel and The Chedu Hegra, both aimed at attracting luxury tourists.

ALULa's cultural significance differentiates It from other destinations, including the UAE. It is home to Saudi Arabia's first-ever UNESCO World Heritage Site. ALULa gives visitors a glimpse into ancient civilizations, with archaeological sites like Hegra spanning over 200,000 years.

Economic Impact: AlULa as a Key Contributor

The development of AlULa is expected to contribute around 120 billion Saudi riyals to Saudi Arabia's GDP by 2030, creating 38,000 jobs in the process.

 Partnerships and Collaborations: Enhancing Connectivity

To enhance accessibility, the RCU has an alliance with many Airlines to improve connectivity with AlULa, mainly from Europe and the US.

Flights account for 65% of arrivals, undermining the Kingdom's aim of attracting high-end tourists who value cultural and heritage experiences.

Dubai's Tourism Growth in 2024:UAE's Staedy Expansion

While Saudi Arabia is experiencing a rapid 73% growth in tourism, Dubai continues to perform strongly in the global tourism market. In the first half of 2024, Dubai invited 9.31 million international overnight visitors, an 8.9% increase from the previous year.

Comparing Tourism Strategies: UAE vs Saudi Arabia

Saudi Arabia and the UAE continuously invest heavily in their tourism sectors, but their approaches and focus areas show vital differences.

Tourism Infrastructure development: UAE's established Base vs Saudi Arabia's New Giga Projects

The UAE has long been known for its world-renowned infrastructure, with Dubai leading the way through iconic hotels, resorts, and airports catering to leisure and business travellers.

On the other hand, Saudi Arabia is catching up quickly with its large-scale giga projects like NEOm and the Red Sea project, which are curated to position the Kingdom as a global leader in luxury tourism.

 Diversification of Tourism Offerings: UAE's Broad Appeal Vs Saudi Arabia's Cultural and Religious Focus

The United Arab Emirates has long focused on luxury shopping, beach resorts, and religious tourism. The Hajj and Umrah pilgrimages are central to its tourism strategy, with plans to significantly increase religious visitors. Although the UAE provides more modern attractions, Saudi Arabia leverages its heritage sites like ALULa, appealing to tourists seeking historical and spiritual experiences.

 Government Initiatives: UAE's Well-Established Policies vs Saudi Arabia's Aggressive Promotion

The UAE government has promoted tourism through visa reforms and marketing campaigns,

ensuring the country remains an accessible and attractive destination. Events like Expo 2020 Dubai and year-round cultural initiatives have been instrumental in maintaining the UAE's high visitor numbers.

Compared with Saudi Arabia, it has taken a more aggressive approach, rolling out Vision 2030 with substantial investments and promotions to boost its global tourism appeal. Saudi Arabia's rapid push into the tourism market contrasts with the UAE's more gradual promotion of its tourism sector.

 Visa Free Policy

The UAE has made travel more accessible for tourists by providing visa-free entry to citizens of 55 countries, including Argentina, Austria, Belgium, Brazil, China, and many European Union member states, such as Germany, France, Italy, and Spain. Travellers from Japan, Israel, and Mexico can also enjoy visa-free access to many Middle Eastern countries, such as Bahrain, Kuwait, and Saudi Arabia.

They include that the citizens of Switzerland, Norway, and Iceland benefit from the UAE's open visa policy. This initiative is part of the UAE's strategy for boosting tourism by making the country more accessible to a broader international audience, enhancing its appeal as a global spot.

 CustomizedCustomized Travel Experience: UAE Tailored Luxury vis Saudi Arabia's Emerging Luxury Market

Saudi Arabia is just beginning to develop its luxury market, with projects like Amaala and Sindalah targeting wealthy international tourists. While the UAE has an established reputation for luxury, Saudi Arabia's emerging luxury sector provides new, distinctive experiences that appeal to diverse tourists.

 UAE Tourism Infrastructure Investments: A Steady Path to World-Class Experiences

With Saudi Arabia's Vision 2030's rapid growth, the United Arab Emirates follows a more established yet ambitious path for boosting its tourism industry. The UAE focuses on expanding its already world-class infrastructure, ensuring it continues to be a global tourism hotspot, while Saudi Arabia rapidly builds its futuristic attractions.

 Big Investment Plans: UAE's Strategic Commitment to Infrastructure

The UAE is all set to invest over $10 billion in tourism infrastructure as part of its new long-term tourism strategies. These investments will fund the development of attractions, hotels, and other tourism facilities to continue positioning the UAE as a premier travel destination. Unlined Saudi Arabia is building much of its tourism industry from the ground up in the UAE and is expanding its already well-established foundation. Tourism investment in the UAE grew by 15.1 % in 2023, and it's expected to rise by nearly 12.5% in 2024. By 2034, total assets are projected to reach around AED 50.9 billion. While Saudi Arabia is experiencing rapid growth, the UAE's established reputation as a global transit hub is something Saudi Arabia is still building towards with new projects like Riyadh's new airport.

 Hotel Construction: Enhancing Capacity for Meeting Future Demand

As part of its long-term vision, the UAE is focused on enhancing the number of hotels and resorts to meet the ever-growing demand for accommodations. In Abu Dhabi alone, hotel rooms are set to increase from 34,000 to 52,000 by 2030. New hotel chains like Nammos and Mondrian continue attracting luxury and mid-range tourists. Saudi Arabia's hotel development focuses majorly on luxury accommodations.

 Attractions and Entertainment: A Mix of Culture and Adventure

The UAE's diverse range of attractions continues to drive its tourism success. Significant developments include:

• The construction of the Guggenheim Museum.
• The expansion of Warner Bros World.
• The introduction of Harry Potter World.
• The enhancement of Yas Waterworld in Abu Dhabi.

By contrast, Saudi Arabia focuses more on cultural projects such as ALULa and the Diriyah Gate. Still, it is also making strides in entertainment with projects like Qiddiya.

The UAE Tourism Strategy 2031: A Vision for the Future

All these developments are perfect for the UAE Tourism Strategy 2031, which aims to attract AED 100 billion in investments and boost the sector's GDP contribution to AED 450 billion by 2031. The objective is to make the UAE a top spot in the region and a world-renowned tourism hub.

Economic Collision of Tourism in the UAE: Slow Growth Path as Compared to Saudi Arabia's Rapid Surge

The United Arab Emirates is known for its prominent contribution to the tourism industry. In 2023, the sector contributed 11.7% of the UAE's GDP, amounting to AED 220 billion, and this is expected to rise to 12% by 2024. While these figures mirror the UAE's steady growth, Saudi Arabia's rapid 73% tourism growth under Vision 2030 pushes the Kingdom toward a transformative development period, allowing it to quickly catch up with the UAE's established sector.

UAE's Long-term Investment in Tourism

The World Travel and Tourism Council projects that the UAE's tourism industry will contribute around AED 275.2 billion to GDP by 2034, a testament to the country's ongoing commitment to fostering tourism as a significant economic driver. In comparison,

Saudi Arabia's Vision 2030 projections are objective for similar long-term impacts with a focus on building the Kingdom's economy through tourism investments that rival the UAE's.

Tourism investment in the UAE is expected to grow by 12.5% in 2024, following a 15.1% increase in 2023; by 2034, total investments will reach AED 50.9 billion. The UAE recently led the Gulf Cooperation Council in tourism investment as a percentage of GDP, with around 9% of its GDP going into the tourism sector, and this is expected to rise to 12% by 2030. This sustained investment ensures that the UAE remains a key player in regional tourism even as Saudi Arabia's never projects rapidly gain traction.  

Creation of Job and economic Diversification

Tourism in the UAE moves beyond its GDP contributions; therefore, it plays a vital role in creating jobs and diversifying the economy. Also, in 2023, the sector generated approximately 809,000 jobs, projected to increase to 833,000 by 2024; employment across numerous activities and fields has fostered economic stability and diversified revenue streams for the UAE.

The 2030 Vision of Saudi Arabia also prominently emphasizes job creation via its tourism initiatives, with projections showcasing that the tourism sector could employ over 3.6 million people by 2034. While the UAE has been a leader in this space, Saudi Arabia's aggressive investments in tourism infrastructure are expected to close the gap in employment growth over the next decade

 Why Is Saudi Arabia Beating the UAE in Tourism Growth?

Saudi Arabia and the UAE have made impressive strides in developing their tourism sectors. Saudi Arabia's rapid 73% growth shows a transformative shift outpacing the UAE's more established but slower growth trajectory. The main reason behind Saudi Arabia's growth is its strategic promotion. Conversely, when continuing to invest prominently, the UAE builds upon a more mature foundation, thus resulting in steadier growth.

Yet another main factor is Saudi Arabia's focus on cultural tourism. The Kingdom's emphasis on expanding the Hajj and Umrah pilgrimages and promoting historical and cultural sites like ALULa and Diriyah has made a testament to an abroad audience seeking distinctive, spiritual, and authentic experiences in areas where the USE has less emphasis.

Moreover, Saudi Arabia's rapid infrastructure expansion has allowed it to open up newer destinations at an accelerated pace compared to the UAE's more gradual development. While the UAE continues to lead in established luxury markets, Saudi Arabia is tapping into high-speed travellers through newly developed luxury resorts, cultural projects, and personalized travel experiences, giving it a competitive edge in attracting international visitors.

• Saudi Arabia

 Riyadh- A City of Culture and Progress

Being the capital of Saudi Arabia, Riyadh represents the Kingdom's heart. It is where modern skyscrapers are built with historical landmarks. Start your journey at the National Museum, which offers a deep dive into Saudi Arabia's culture, history and evolution. You can explore the King Abdulaziz Historical Center, which highlights the country's founder and his legacy.

For the latest and modern experiences, Kingdom CCentre offers an extraordinary view of the enthralling cityscape from its sky bridge. Shoppers and food lovers would find the mall a great spot to explore luxury brands and dine at high-end restaurants. Visit Al Diriyah, a UNESCO World Heritage site, for a quarter of a cultural indulgence. The restored mudbrick infrastructures of Diriyah take you back to the roots of Saudi Arabia's royal family, providing a glimpse into the history of the Arabian Peninsula.

Riyadh also hosts exciting annual events like the Riyadh Season, a festival that brings art, culture, and entertainment to the city. You will get from international concerts to traditional Saudi performances. For a more local vibe, indulge in the food markets or a traditional Arabic coffee at any of the city's charming cafes.

• Jeddah

Jeddah is the door to Mecca, a city known for its cultural diversity. Credit goes to its Red Sea coastline and history as a port city. The Corniche is one of Jeddah's most picture-friendly attractions, providing miles of waterfront walks, art installations, and parks.

• AlULa

ALULa is Saudi Arabia's most exciting historical landmark, situated northwest of the Kingdom. It is famous for its remarkable desert landscapes and old heritage. The city is home to Hegra, a UNESCO World Heritage site with 131 monumental tombs and beautifully carved facades dating back to the Nabataean Kingdom.

• Dammam

Dammam, the capital of Saudi Arabia's Eastern parts, sits alongside the Arabian Gulf, providing a laid-back coastal atmosphere. The Corniche of Dammam is a family-friendly space with parks, restaurants, and stunning views of the Gulf.

• UAE

Dubai—Dubai has become one of the most iconic cities globally, famed for its luxury towering skyscrapers and futuristic vision. Start your adventure at the Burj Khalifa, the World's tallest building, where you can enjoy unparalleled city views from the 148th-floor observation deck. The Dubai Mall, one of the biggest in the World, is next door, housing hundreds of retail outlets, an aquarium, an indoor ice rink, and a cinema.

• Abu Dhabi

The capital of the UAE balances cultural richness with cutting-edge development. Start your tour with the iconic Sheikh Zayed Grand Mosque, a breathtaking structure combining Islamic architecture and modern design. Marbel-clad walls adorned with intricate calligraphy and gold details are a must-see. Just as culturally enriching is the Louvre Abu Dhabi, which hosts various global artworks offering a fresh perspective on human civilizations.

• Ras Al Khaimah

RAK is situated in the northernmost region of the United Arab Emirates and offers different experiences in nature, adventure, and history. It is quite famous for the Jebel Jais, the highest peak in the UAE, where thrill seekers can enjoy the World's longest zipline and stunning mountain views.

• Sharjah

It is often the cultural capital of USE Sharjah, providing a quieter, more traditional experience than the glamorous neighbours. Begin your day at the Sharjah Museum of Islamic Civilization, home to thousands of rare artefacts, including manuscripts, ceramics, and textiles. A movement through the Heart of Sharjah brings you back in time with restored buildings that capture the essence of the emirate's history.

Art lovers should not miss the Sharjah Art Foundation, a hub for modern exhibitions and contemporary art installations by regional and international artists.

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