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The Travel & Tourism sector is expected to inject SAR 447.2 billion into Saudi Arabia’s economy this year, marking a new record. – Image Credit WTTC
WTTC predicts a record-breaking year for the global Travel & Tourism sector, with international visitor spending expected to reach $2.1 trillion. Despite slower growth in major economies like the US and China, Saudi Arabia is set to make significant strides, with the sector contributing over 10% of its GDP by 2025. The Middle East region is also expected to see robust growth in the industry.
Global Travel & Tourism Set to Achieve Record Heights
The World Travel & Tourism Council (WTTC) predicts that international visitor spending will surpass all previous records this year, reaching an unprecedented $2.1 trillion, $164 billion more than the peak in 2019. The sector’s global economic contribution is expected to hit $11.7 trillion, accounting for 10.3% of global GDP. The Travel & Tourism job market is projected to grow by 14 million, taking the total to 371 million worldwide, surpassing the entire population of the United States.
Uneven Growth in Major Economies
Despite the sector’s overall growth, some major economies are experiencing slower momentum. The United States, which boasts the largest Travel and tourism market globally, continues to trail behind 2019 levels in international visitor spending. Similarly, despite seeing international spending surpass pre-pandemic levels last year, China is expected to experience a sharp growth slowdown in 2025.
Saudi Arabia’s Impressive Surge
In contrast to these trends, Saudi Arabia is crafting its own success narrative. The latest data from WTTC shows that the Travel & Tourism sector is expected to inject SAR 447.2 billion into Saudi Arabia’s economy this year, marking a new record.
The sector is projected to account for more than 10% of Saudi Arabia’s GDP in 2025, with employment anticipated to reach a historic high of 2.7 million. This growth is powered by robust levels of international and domestic spending, with inbound visitor spending projected to reach nearly SAR 200 billion this year, and domestic spending expected to surge to a record SAR 162.5 billion.
Transformation of the Sector
According to Julia Simpson, WTTC President & CEO, Saudi Arabia’s Travel & Tourism, the country is redefining what’s possible in the sector. It will not only meet but surpass the ambitions of Vision 2030.
Middle East’s Growth Prospects
The broader Middle East region is also set to witness significant growth in Travel & Tourism. The sector is estimated to contribute $367.3 billion to the regional economy and support 7.7 million jobs this year. International visitor spending is projected to reach nearly $194 billion this year, 24% above 2019, while domestic traveller spending is expected to hit almost $113 billion.
