Net tourism expenditures over GDP Saudi Arabia 2008-2021

According to the data provided by the World Tourism Organization (UNWTO), in 2021, the tourism balance in Saudi Arabia was minus one percent following the COVID-19 outbreak. This was a decrease compared to minus 0.6 percent in the previous year.

Saudi Arabia’s economic diversification

   In 2016, Saudi Arabia introduced a new initiative, Vision 2030. The main goal of Vision 2030 was to diversify Saudi Arabia's exports and revenue opportunities beyond the oil and gas industry to include segments such as transportation and entertainment. Economic diversification in Saudi Arabia has proven necessary since oil prices plunged because of the ongoing pandemic. The pandemic's impact on travel reduced Saudi Arabia's oil shipments to China, a prominent Saudi oil importer, as well as the rest of the world. The country's real GDP growth plummeted to around negative four percent in 2020, which demonstrated the dependence of Saudi Arabia's economy on oil and gas exports. 

Tourism initiatives

The purpose of reforming Saudi Arabia's economy is not just to diversify it but also to create growth prospects for Saudi citizens. For example, there were more than half a million workers in the tourism sector in 2019. Shifting economic reliance from the public to the private sector could generate employment opportunities tailored to people’s skills.
The government's plans for economic diversification include attracting foreign investment, increasing the number of small and medium-sized firms, and generating employment opportunities via mega-project development. Mega construction projects in Saudi Arabia include NEOM, with a value of approximately half a trillion U.S. dollars and an expected completion date of 2025. With smart city technology being incorporated into the city, NEOM is planned to function as a major tourist destination in Saudi Arabia.