08 Oct 2024
RIYADH: Saudi Arabia’s Abha city has secured a new investment partnership to boost tourism by developing culturally rich dining and retail experiences.
The Public Investment Fund’s firm Aseer Investment Co. has signed the deal with Nimr Real Estate and the National Co. for Tourism, or Syahya, to propel the project, the Saudi Press Agency reported.
This aligns with the objectives of developing Abha, which will offer a range of benefits, including retail stores that reflect the cultural heritage of the Asir region.
The partnership also seeks to be a model for multiple collaborations with private sector investors and create more regional job opportunities.
Investments in the region are expected to create between 14,000 and 18,000 job prospects and contribute to up to 6 percent of the non-oil gross domestic product within 10 years, as outlined by the CEO of AIC, Osama Al-Othman, in February.
Under the National Tourism Strategy, Saudi Arabia aims to attract 150 million visitors by 2030 and increase the sector’s contribution to the nation’s GDP from 6 percent to 10 percent.
The latest agreement seeks to empower the local community and develop and diversify the regional economy in line with PIF’s strategy.
Speaking during a press conference on the Kingdom’s tourism plans that was held in July in Asir, Minister of Tourism Ahmed Al-Khateeb said the region enjoys moderate weather during the summer season and low temperatures compared to most cities in the world.
Visitors can enjoy various attractions, historic villages, local produce farms, delicious cuisine, and renowned locations set to provide rich cultural experiences, the minister said at the time.
Al-Khateeb said there is a significant demand and focus on the hospitality sector in the region and there are now 10 projects funded by the Tourism Development Fund, with an investment size of approximately SR1 billion ($266 million).
In February, during PIF’s second Private Sector Forum, Prince Turki bin Talal, chairman of AIC, unveiled the company’s ambitious plans as it embarked on its operational journey to make the area the number one tourist destination in the Kingdom.
Earlier this month, the Saudi Ministry of Tourism said the country achieved an 8.2 percent growth in spending by foreign visitors during the first half of 2024, compared to the same period in 2023.
Total expenditures amounted to about SR92.6 billion, while the Kingdom posted a travel account surplus of around SR41.6 billion, the Saudi Press Agency reported at the time.
The increase in spending by visitors to Saudi Arabia is part of significant developments in the tourism sector.
The Kingdom also topped the list of G20 countries in terms of growth in the number of international visitors and an increase in global tourism revenues during the first seven months of the year, compared to the same period in 2019, according to the UN World Tourism Organization.
This confirmed the effectiveness of the efforts made by the tourism system to achieve global leadership for the sector by applying best practices in travel and hospitality development, improving services and products, and continuous cooperation with all government entities.