Skift Take
As Saudi Arabia sets out to diversify its economy, Chinese tourists are becoming a critical part of its plan. With record-breaking numbers expected in 2025, the kingdom hopes Chinese travelers will accelerate its Vision 2030 goals.
Saudi Arabia is setting its sights on the Chinese outbound tourism market as part of its strategy to transform the kingdom into a global tourism hub. With 1.4 billion people, China offers a significant source of potential travelers, especially as the number of Chinese tourists flying internationally recovers post-pandemic.
“China is a huge market,” said Saudi Arabiaâs Tourism Minister Ahmed Al Khateeb in an interview with Skift ahead of the World Economic Forum Urban Transformation Summit in San Francisco. “Last year, about 120 million Chinese traveled, and this year that number is expected to reach 140 million. Next year, they are forecasting a record 150 million.”
Saudi Arabia has identified an opportunity to attract the 20-25% of Chinese tourists who take mid-to-long-haul flights, often to Europe and the Middle East. “We want to capture part of this big traffic,â he said.
To tap into this market, Saudi Arabia has been actively promoting itself in China. âWe hosted a Saudi festival there, and thousands of people visited to learn about our culture. We share values like family, and they travel for culture and heritage, which we have a lot to offer,” Al Khateeb added. The Saudi Travel Festival was held at Beijingâs Tiantan Park last week.
This push is part of Saudi Arabiaâs broader tourism expansion named Vision 2030 â a framework developed by Saudi Arabia with the aim of reducing its dependence on oil by diversifying into other sectors, including tourism. The plan was initially set to attract 100 million visitors annually by 2030, but the goal was later revised to 150 million when the Kingdom surpassed its 100 million goal in 2023, seven years ahead of schedule.
A Selective Technological Push
The Kingdom is also exploring how technology can enhance travelersâ experience, especially in airports. “We want to digitalize the unnecessary, like the hassle of airports, while preserving the necessary human connections that are core to tourism,” Al Khateeb said.
That includes concepts like biometric systems and unmanned transport, while still allowing tourists to take in the local culture and people.
âI don’t want to spend time in the airport. This is unnecessary,â Al Khateeb said. âPicking up my bag, it’s unnecessary. Just put in a chip and let the bag be delivered to your hotel.â
But Al Khateeb is protective of the personal, human experience intrinsic to travel. “When you go to a restaurant, you want to speak with the people, with the locals,” he says. “When you are in the lobby, you want to talk to the waiter and joke when you are driven by Uber or by taxi.”Â
Public-Private Partnerships
Saudi Arabia is increasingly turning to public-private partnerships to fuel the growth of its tourism sector. The government plays a regulatory role, while the private sector leads in operations, Al Khateeb explains. “We regulate and they operate. We can’t regulate something that they cannot operate. We have to work together.”
Al Khateeb cites the U.S. as a model for this approach, where the private sector owns and operates key tourism infrastructure like hotels, airlines, and restaurants, while the government limits its involvement to setting the rules for doing business.
âThe regulation that we put together has to be operational friendly. It has to drive connectivity. It has to be seamless, easy,â he said, adding that as markets mature, guests themselves become the most effective regulators through reviews on online platforms. “Here the business owner would really, really up their game and make sure that they provide the best products and services.”
Yet, this public-private collaboration is still developing. Al Khateeb notes the kingdom has made strides in easing the cost of doing business and rolling out new tourism laws. And despite public pressure to regulate prices, particularly during peak seasons like Ramadan, the government remains focused on ensuring quality and safety, rather than controlling pricing.
The kingdom has set ambitious targets, aiming to create 1.6 million jobs in tourism by 2030. Since 2019, 200,000 jobs have already been created in the sector, with major projects like NEOM, the Red Sea, and the Sindalah resort driving further growth.
“Weâre building more than 250,000 hotel keys in the next 10 years,” Al Khateeb said, noting the strong pipeline of public and private investments. “I’m very comfortable that we will create the jobs that we promised to create.”
