TOURISM

TOURISM

SAUDI SEEKS A SLICE OF THE LUCRATIVE TRAVEL RETAIL PIE

The launch of Al Waha Duty-Free Company (Al Waha), a travel retailer and the first Saudi-owned duty-free operator, marks the start of a new chapter in boosting the kingdom’s tourism retail sector.

Al Waha, which is wholly owned by the Public Investment Fund (PIF), aims to become a leader in travel retail and secure a greater share of passenger spending for the Saudi economy. 

The company will develop luxury retail outlets in select locations across the country and feature a variety of merchandise including distinctive, high-quality Saudi products. The company will also operate its airport outlets on a duty-free basis, and will explore additional travel retail opportunities at land border crossings and seaports, as well as channels such as inflight shopping.

"By establishing Al Waha as a national travel retail champion, PIF intends  to grow the Saudi travel retail industry and further support its ambitions for the tourism sector in Saudi Arabia,” said Majed Al-Assaf, head of Consumer Goods and Retail in MENA Investments. “Al Waha will offer a distinctive traveller experience across Saudi travel retail touch points through diverse product oerings, a duty-free operation and a superior digital customer journey." 

TRAVEL RETAIL SPENDING

There is considerable potential for Saudi Arabia to gain a larger share of travel retail spending in the future, as the continued increase in visitor arrivals and the number of global events being hosted locally oer new opportunities to generate sustainable revenues. 

Saudi Arabia welcomed nearly 30 million international tourists last year, with ocials saying the kingdom is on track to receive 70 million visitors annually by 2030. This is part of the government’s efforts to secure Saudi’s ranking among the top seven tourist destinations worldwide.

Additionally, the kingdom has launched a new airline, Riyadh Air, to further support its tourism objectives. Efforts are underway to develop new destinations and modern airports, including King Salman International Airport, which is projected to accommodate over 120 million travellers. 

The King Salman International Airport masterplan, which will boost Riyadh’s position as a global logistics hub, is expected to boost transport, trade and tourism, and act as a bridge linking the east with the west. The airport project is in line with Saudi Arabia’s vision to transform Riyadh into one of the top 10 city economies in the world, and to support the growth of Riyadh’s population to 15–20 million people by 2030. 

King Salman International Airport is expected to be one of the world’s largest airports covering an area of approximately 57 square kilometres (sq km), allowing for six parallel runways and including the existing terminals named after King Khalid. It will also include 12 sq km of airport support facilities, residential and recreational facilities, retail outlets, and other logistics real estate. The airport aims to accommodate up to 120 million travellers by 2030 and 185 million travellers, with the capacity to process 3.5 million tonnes of cargo, by 2050. 

The new airport is expected to contribute SAR 27 billion annually to non-oil GDP and create 103,000 direct and indirect jobs, in line with Vision 2030 objective.

RED SEA CRUISE

Other PIF tourism investments include the Jeddah-based company Cruise Saudi, which aims to make the Saudi coastline of Red Sea a premier global destination. 

Cruise Saudi specialises in developing the kingdom’s cruise tourism sector. The company signed a contract with PC Marine Services company late last year to develop a private island in the Red Sea as an exclusive destination for cruise-ship passengers. The project is a strategic step in enhancing the cruise sector in the country. 

The new private island will reflect authentic Saudi heritage through its design and the diversity of experiences on offer, enhancing its status as the first of its kind in the Red Sea dedicated to cruise-ship passengers.

The project aims to offer tourists a wide range of recreational activities, both coastal and aquatic, complemented by a variety of unique facilities and services designed to create unforgettable experiences for all visitors. During the initial phase, the island will have the capacity to host up to 2,000 guests. 

Other recent efforts in the tourism sector include the launch last December of Adeera, which will develop and operate new homegrown hotel brands embodying authentic Saudi culture and hospitality. Adeera aims to complement the various international brands already in Saudi Arabia and expand opportunities for Saudi talent and the private sector.