International Monetary Fund highlights Saudi Arabian tourism sector's achievements

The International Monetary Fund (IMF) in its 2024 Article IV Consultation report noted that Saudi Arabia's tourism sector is significantly contributing to the country's economic diversification. The paper emphasised that Saudi Arabia has successfully surpassed the Vision 2030 target of 100 million annual visitors, reaching this milestone as early as 2023, seven years ahead of schedule. 

In 2023, tourism revenues totalled US$36 billion and net income from tourism activities increased by 38 per cent. The sector's direct and indirect contribution to GDP reached 11.5 per cent in 2023 and is projected to grow to 16 per cent by 2034.

The IMF report also emphasises that the tourism industry is contributing to Saudi Arabia's improved service balance, as the country has started earning more from international tourists than it spends on outbound tourism. This is reported by Saudi Press Agency (SPA).

It is also noted that while outbound tourism spending by Saudis has declined, spending by foreign nationals in the country has increased significantly since the COVID pandemic. An important aspect of this transformation is the diverse linkages that Saudi Arabia's tourism industry has created with other industries such as food processing, hospitality and cultural industries. These linkages are helping to reduce the kingdom's dependence on the oil sector.

Vision 2030 remains the kingdom's main economic reform plan and tourism is central to it. The IMF's recognition of Saudi Arabia's progress reflects the enormous potential of its tourism sector and its ability to contribute to sustainable economic growth in the future.