Saudi Arabia announced on Wednesday the cancellation of fees for obtaining commercial activity licenses for hotels, hotel apartments, and residential resorts, according to the state news agency, SPA.
This change, effective September 4, is part of the Tourism Investment Enabler Program launched by Saudi Arabia in March, which aims to position the Kingdom as a global tourism leader.
SPA reported that the decision is in line with the objectives of the Kingdom’s Vision 2030, which aims to position Saudi Arabia among the leading tourist destinations globally.
The initiative is further expected to attract increased investment in the tourism sector, thereby boosting its contribution to the nation’s gross domestic product.
Saudi Arabia’s Vision 2030 aims to modernize the Gulf Arab nation and decrease its reliance on oil exports, with over $800 billion allocated for economic diversification.
Additionally, Saudi Arabia’s hospitality revenue is expected to see a compound annual growth rate of 7.5 percent from 2023 to 2028, driven by government-led initiatives, according to new data.
This growth, in line with the Gulf Cooperation Council (GCC) average, is further supported by various projects under the Kingdom’s Vision 2030 plan, as stated by a recent report from investment banking advisory firm Alpen Capital.
Moreover, Alpen Capital’s report forecasts the GCC hospitality sector’s revenue to grow at a CAGR of 7.5 percent from 2023 to 2028, reaching approximately $48.1 billion by 2028. This growth is driven by economic expansion, increased tourist arrivals, and numerous mega events, as well as incentives, conferences, and exhibitions coupled with sporting events in the region.
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