Gulf Construction Online - Massive $810bn tourism projects under way

Saudi Focus

Massive $810bn tourism projects under way

01 October 2020

Massive investments worth over $810 billion in mega tourism projects across Saudi Arabia are expected to transform the kingdom into one of the largest leisure tourism markets in the world between now and 2030, according to research conducted by the Middle East and North Africa Leisure Attractions Council (Menalac).

These include the $500-billion mega development Neom which leads the list of the mega projects followed by the $10-billion Qiddiyah Project, spread across 334 sq km in Riyadh. Once completed, Neom will deliver a futuristic mega sustainable city, stated the leisure and entertainment industry council representing the Middle East’s leisure attractions sector.

The third project is Amaala, or the Saudi Riviera, located in the northern region with an area of 3,800 sq km, while another mega venture involves developing islands in the Red Sea with a total area of 34,000 sq km.

According to the report, Saudi Arabia is looking to more than double its investment in recreational facilities from the current 2.9 per cent to 6 per cent by 2030.

Mishal Al Hokair, Board Member of Menalac, said: “Saudi Arabia has an array of dynamic plans and attractions planned over the next few years, each of which will add to the fast growing leisure and entertainment sector. Its Vision 2030 will change the entire economic and tourism landscape of not only Saudi Arabia, but the entire Middle East region, that will have a massive positive knock-on effect on the leisure tourism industry.”

“Once the current Covid-19 situation improves, the investment and development in Saudi Arabia’s tourism sector will bring massive opportunities for the industry. It is time for everyone to prepare for the next big growth,” he added.

Saudi Commission for Tourism and National Heritage (SCTH), the country’s tourism regulator, said the mega tourism projects being developed by Public Investment Fund will be spread over an area of more than 64,634 sq km, with a value exceeding $810 billion.

In addition, SCTH will be developing museums in various parts of Saudi Arabia, and preserving Saudi heritage with a cost of more than $1.3 billion.

Despite the current Covid-19 situation, Saudi Arabia is pushing ahead with construction of some of these massive projects. A number of construction contracts have recently been awarded following the partial re-opening of the economy after the lockdown.

Red Sea Development Company has recently awarded construction contracts worth $1 billion while Neom has awarded Bechtel and Aecom programme management contracts.

SCTH plans to facilitate investment SR171.05 billion that will boost the tourism industry capacity and the number of hotel rooms to 621,600 and the tourism sector’s contribution to the GDP by 3.1 per cent, as well as increase direct employment to 1.2 million jobs.

“In 2017, the Saudi tourism sector had attracted investment of SR172 billion ($28.6 billion), which was six times the world average in tourism capital investments,” according to a report by Sagia. “Investments are expected to rise 5.5 per cent per annum over the next 10 years to SR200 billion ($54 billion) per annum.”