PILGRIMS are helping drive the growth of tourism in Saudi Arabia, according to a recent report published by Timetric, an independent economic and business research firm.
Each year millions of pilgrims from all around the world visit Saudi Arabia to perform the rituals of Hajj and Umrah at the holy cities of Makkah and Madinah and last year 44 per cent of kingdom’s domestic trips were made to Makkah, making religious tourism the backbone of the travel industry in Saudi Arabia, it noted.
Reflecting on the demand for religious tourism, the government of Saudi Arabia is now investing in tourism as one of the ways to reduce the economic dependence on oil, and in recent years there have been investments in infrastructural improvements such as airports, railways and roads, the report said.
“In August 2012 the government announced its plans to improve the transport system in Makkah. The plan includes the construction of a metro system and a bus network and will comprise a total investment of SR62 billion ($16. 5 billion) over a 10 year period,” it noted.
“The government has also recognised the need to look beyond religious tourism by investing in other domestic tourism facilities. Fronted by the Saudi Commission for Tourism and Antiquitites (SCTA), the government has authorised the development of 40 private museums, new roads to heritage sites and new airports,” it said.
According to SCTA forecasts, domestic trips will grow to 128 million by 2019.
The latest figure from Timetric reveals a decline in inbound and domestic tourism, whereas total tourism expenditure increased. In 2011 the travel and tourism sector formed 2.3 per cent of the nation’s gross domestic product (GDP).
The total number of domestic trips taken by residents decreased from 28.5 million in 2007 to 23.6 million in 2011 with a compounded annual growth rate (CAGR) of -4.6 per cent. While outbound trips increased at a CAGR of 16 per cent, inbound tourism registered decline and posted a CAGR of 0.8 per cent.
The key reason for the decline in inbound tourism has been the effects of the Arab Spring, as visitors from North Africa and Middle East regions, who form a key component of the Haj pilgrims, took fewer trips, the report said.
Despite a decline in both domestic and inbound tourism in 2011, total spending by inbound tourists increased with a CAGR of 23.08 per cent due to a growing economy and higher disposable income, it said.