Monday, September 16, 2024 During a recent four-day visit to Hong Kong, a senior official from the Aseer Region Development Authority revealed that numerous businesses have shown significant interest in investing in Saudi Arabia’s expanding tourism and hospitality sectors. The discussions come at a pivotal time as Saudi Arabia positions itself as a leading player in global tourism through its Vision 2030 initiative. Aseer, located approximately 950 kilometers from Riyadh, is well-known for its lush forests, coastal beauty, and cooler climate due to its elevated terrain.
The region is undergoing a major transformation, with plans to develop a luxury mountain destination on the kingdom’s highest peak through the ambitious Soudah Peaks project. Spanning 81,000 square kilometers, Aseer aims to attract 9.1 million tourists by 2030.
To accommodate this influx, the region is boosting its hospitality infrastructure with plans to add 10,000 new hotel rooms. This expansion is part of a larger national effort to create a year-round tourist destination, particularly appealing as European countries face growing issues of overtourism. In 2023, Aseer emerged as Saudi Arabia’s top cultural tourism destination, recording more than half a million local trips to museums and art galleries, according to the Saudi Culture Ministry.
The region’s rich cultural offerings are expected to play a significant role in attracting international visitors as well. The official’s visit to Hong Kong included participation in the annual Belt and Road Summit and a forum hosted by the Hong Kong Ambassadors Club. Discussions focused on the potential for international collaboration, with Saudi Arabia actively seeking both local and foreign investors through newly simplified regulations.
The updated legislation will eliminate the foreign investor licensing requirement, replacing it with a streamlined registration process to promote fair competition. To further incentivize investors, the Saudi government is offering a variety of financing options, particularly in key tourism growth areas such as Neom, the futuristic megacity under construction on the country’s northwestern coast. Although Neom was initially estimated to cost $1.
5 trillion, the project has been scaled back to $500 billion, supported by Saudi Arabia’s Public Investment Fund. Saudi Arabia’s efforts to diversify its economy away from oil have made the tourism sector increasingly attractive to global investors. With rising geopolitical tensions between the United States and China, Hong Kong has ramped up efforts to strengthen ties with the Middle East and ASEAN member states.
This collaboration was exemplified by a high-profile visit by Hong Kong’s leader to Saudi Arabia and the United Arab Emirates last year, which was followed by numerous business exchanges aimed at deepening economic relations. Tourism plays a key role in Saudi Arabia’s Vision 2030, and the kingdom’s push to develop Aseer and other major destinations presents lucrative opportunities for global investors eager to explore the booming tourism industry in the Middle East..
