Ministry of Tourism Launches Investment Enablers Initiative in Hospitality Sector in Collaboration with Ministry of Investment
The Ministry of Tourism, in collaboration with the Ministry of Investment, has launched the Investment Enablers Initiative in the hospitality sector. This initiative is part of the broader Investment Enablers Program in the tourism sector, recently introduced by the Ministry of Tourism. The launch took place on the sidelines of the Future Hospitality Summit held in Riyadh under the theme “Invest in Saudi Arabia and Thrive in Tourism,” attended by numerous local and international investors.
Engineer Mahmoud Abdulhadi, Deputy Minister of Tourism for Tourism Destinations Enablement, explained that the Investment Enablers Initiative in the hospitality sector, in cooperation with the Ministry of Investment, is part of the strategic goals of the Ministry of Tourism. This initiative aims to strengthen the Kingdom’s position as a global tourist destination by providing significant investment opportunities for both local and international investors. It is specifically designed to suit the promising tourism destinations and stimulate investment in these areas. Abdulhadi highlighted that the initiative aims to increase and diversify tourism offerings and enhance the capacity of hospitality facilities in tourist destinations.
The initiative seeks to attract private investments in the hospitality sector in specific tourist destinations, targeting around *42 billion riyals* in investments, with expected returns of approximately *16 billion riyals* to the Kingdom’s GDP by 2030. The initiative is projected to create up to *120,000 additional job opportunities* in these destinations by 2030. Additionally, it will enhance the tourism infrastructure and hospitality facilities in the Kingdom. Abdulhadi noted that the collaboration between the Ministry of Tourism and various government partners to improve the investor journey has resulted in a reduction of approximately *22%* in annual government fees related to the sector. He emphasized the Ministry’s commitment to working with the Ministry of Investment and other government bodies to advance the tourism sector, aligning with Vision 2030’s objectives of diversifying the national budget sources and increasing the sector’s contribution to the GDP to *10%* by 2030.
The initiative is a key component of the Tourism Investment Enablers Program, which aims to achieve a significant increase in the number of hotel rooms to over *550,000, supporting the hosting of **150 million tourists annually* by 2030. This initiative is designed to invigorate the hospitality sector, offering a variety of supplies in key tourism destinations and enhancing the attractiveness of diverse tourism in the Kingdom. It provides exceptional opportunities for local and international investors to participate in the sector’s growth and benefit from the tourism boom in the Kingdom. The initiative includes a package of strategic enablers and incentives specifically designed to improve business costs and ease, such as facilitating access to government lands on favorable terms, simplifying project development processes, and addressing challenges investors might face, alongside developing several regulatory frameworks.
Engineer Saleh Al-Khabbati, Deputy Minister of Investment for Investment Development, affirmed the Ministry’s commitment to enhancing cooperation with the Ministry of Tourism to create an attractive investment environment and motivate local and international investors, serving the promising tourism sector. He stated that amidst the increasing investment opportunities, the Ministry aims to empower investors by providing maximum facilitation and flexibility in all related procedures, achieving a highly efficient and business-friendly investment environment.
Furthermore, the Ministry of Tourism, represented by the Agency for Tourism Destinations Enablement, held multiple meetings with local and international investors participating in the Future Hospitality Summit. During these meetings, the Ministry showcased the facilities offered under the Investment Enablers Program in the tourism sector and the Investment Enablers Initiative in the hospitality sector, which includes a series of strategic enablers to improve business costs and ease. The meetings also addressed all inquiries and questions from investors.
