Saudi Arabia has recently purchased a controlling stake in the country’s largest travel company, Seera Group Holdings, as part of its efforts to boost the tourism sector. The government’s Public Investment Fund (PIF) acquired a 78.25% stake in the company, formerly known as Al Tayyar Travel Group, for around $1.3 billion. The move is in line with Saudi Arabia’s Vision 2030 plan, which aims to diversify the country’s economy and reduce its dependence on oil revenues by developing new sectors such as tourism.
Seera Group is a major player in the Saudi Arabian travel market, with operations spanning 140 countries and a network of over 4,000 travel agents across the kingdom. The company offers a wide range of travel services, including flights, hotels, car rentals, and tours. By acquiring a controlling stake in Seera Group, the government aims to leverage the company’s expertise and resources to help develop the country’s tourism sector.
According to the World Tourism Organization, Saudi Arabia received around 16 million international visitors in 2019. However, the vast majority of these visitors were religious pilgrims, with only a small percentage coming for leisure or business purposes. As part of its efforts to attract more visitors, the government has announced plans to invest $64 billion in the tourism sector over the next decade. The goal is to increase the number of annual visitors to 100 million by 2030 and create millions of jobs in the process.
To achieve this ambitious goal, the government is taking a multi-pronged approach that includes developing new tourist destinations, boosting infrastructure, easing visa restrictions, and promoting the country’s cultural heritage. One of the main projects currently underway is the development of the Red Sea Project, a luxury beach resort that will span over 10,000 square miles along the coast of the Red Sea. The project is expected to attract high-end tourists and generate billions of dollars in revenues once it is completed.
In addition to the Red Sea Project, the government is also investing in a number of other tourism projects across the country, including the Qiddiya entertainment city, the Amaala luxury resort on the northwest coast, and the NEOM city, a futuristic development planned for the northwestern region of the country. These projects are expected to create numerous jobs in construction, hospitality, and other sectors.
To make it easier for visitors to the country, the government has also introduced several measures to simplify the visa application process. In September 2019, it announced the introduction of e-visas for tourists from 49 countries, including the US, UK, and China. The e-visas are issued online and allow visitors to stay in the country for up to 90 days. The government has also relaxed dress codes for foreign women and lifted restrictions on non-Muslims visiting the holy cities of Mecca and Medina.
Boosting tourism in Saudi Arabia is seen as a crucial part of the country’s economic diversification strategy. With the global demand for oil expected to decline in the coming decades, the government is keen to develop other sectors that can sustain the country’s economy in the long term. Tourism is seen as a particularly promising sector, given Saudi Arabia’s rich cultural heritage and natural attractions.
However, the government faces several challenges in achieving its tourism goals. One of the biggest is changing the perception of Saudi Arabia as an ultra-conservative and restrictive society. The country’s strict laws and social norms have deterred many visitors in the past, particularly those from Western countries. The murder of Saudi journalist Jamal Khashoggi in 2018 also damaged the country’s international reputation and raised questions about its human rights record.
To counteract these perceptions, the government has launched several initiatives aimed at promoting the country’s culture, heritage, and hospitality. These include the “Welcome to Arabia” campaign, which aims to showcase the country’s tourist attractions, and the Saudi Seasons initiative, which showcases the country’s festivals, cultural events, and sporting competitions. The government has also invested heavily in marketing and advertising campaigns to attract tourists to the country.
In conclusion, Saudi Arabia’s recent purchase of a controlling stake in Seera Group is a key step in the country’s efforts to develop its tourism sector. With billions of dollars earmarked for tourism projects over the next decade, the government is betting on the sector to provide a much-needed boost to the economy. However, it faces several challenges in changing international perceptions of the country and attracting visitors from diverse backgrounds. With the right investments and initiatives, however, Saudi Arabia has the potential to become a major player in the global tourism industry.