For Saudi Arabia, travel is merging as an explosive driver of economic growth. By not only opening the country to tourism but also putting place policies and mechanisms to facilitate and encourage visitation, both domestic and international, Saudi is opening new pathways to growth for retailers and service providers. All these were discussed in a panel with Khaled Tash, Group Chief Marketing Officer, SAUDIA and Muzzammil Ahussain, CEO, Almosafer, moderated by Eithne Treanor, Founder & CEO, E Treanor Media.
The introduction of the tourism e-visa for Saudi Arabia in 2019 has changed the landscape for travel companies and for retailers, who are benefiting not only from the influx of new arrivals but also from the increased opportunities for Saudis to travel, and spend, within their own country.
Previously Saudis went out of the country to shop. Planes left full and came back empty. The e-visa made it easier for people to visit Saudi for leisure tourism, for religious visitation or for business. This was further facilitated by the introduction of a free transit visa, which offers travelers a four day stay in Saudi if they book through one of the national airlines.
The opportunity is not limited to international visitation. The introduction of new tourism and entertainment options is encouraging more Saudis to explore their own country, boosting demand for accommodation, retail and F&B. And the emergence of the meetings, incentives, conferences and exhibitions (MICE) sector is driving incremental business, as travelers stay to explore more of the country. In 2022, there were more 4,000 events in Saudi, an average of 30 every day.
A further opportunity was unlocked when the e-visa option was made available to religious travelers, allowing travel companies to build packages to Makkah and Medina and supplement them with trips to other destinations around the country. And the growth continues. By 2030 the nation’s flag carrier, SAUDIA, will operate routes to more than 120 destinations. In combination with other international carriers, Saudi will be connected to 250 destinations worldwide.
One area that is ripe for growth is collaborative loyalty programs. SAUDIA’s relaunched loyalty program is driving business to retailers and to financial institutions through credit card tie ups and partnerships. 25 percent of loyalty points earned on the program are coming from new sources, creating an even stronger bridge between travel and retail.
We really need to define what it is that people will enjoy the most when they come to Saudi Arabia. Is it the shopping? Is it the dining? Is it the sightseeing? We don’t want to just be another metropolitan, international kind of destination. We want authenticity. So what are the special products that retailers are offering that you can only buy in Saudi Arabia? Or that makes a difference when you say, “We bought it from Saudi Arabia”?
We really need to define what it is that people will enjoy the most when they come to Saudi Arabia. Is it the shopping? Is it the dining? Is it the sightseeing? We don’t want to just be another metropolitan, international kind of destination. We want authenticity. So what are the special products that retailers are offering that you can only buy in Saudi Arabia? Or that makes a difference when you say, “We bought it from Saudi Arabia”?
