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October 13, 2024

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Exploring Aseer: Maximizing Tourism Opportunities for Regional Success

Traditionally recognized for its vast deserts, oil wealth, and religious significance, Saudi Arabia is embarking on a remarkable transformation. Guided by Vision 2030, the Kingdom is moving away from its dependence on oil towards a more diversified and sustainable economy. Central to this shift is the tourism sector, which is playing a critical role in introducing the nation to the global stage by highlighting its natural landscapes, rich cultural heritage, and historical treasures. From the cutting-edge developments in NEOM to the ancient wonders of Al-Ula, Saudi Arabia is emerging as a premier global tourism destination.

As part of its ambitious Vision 2030, Saudi Arabia aims to attract 150 million visitors annually by developing a wide range of regions and offering diverse tourism experiences. A critical component of this vision is Aseer region, renowned for its breathtaking landscapes, moderate weather, and rich cultural heritage. Aseer is uniquely poised to provide visitors with an immersive experience in nature, culture, and adventure, positioning itself as a key contributor to the Kingdom's tourism goals.

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  1. Domestic and Inbound Tourism Trends in the Kingdom

Aseer plays a pivotal role in Saudi Arabia’s domestic tourism strategy, with the Kingdom welcoming 60 million domestic tourists in the first half of 2024. Aseer’s cooler climate and
outdoor activities make it a popular destination, particularly during the summer months.
Beyond domestic tourism, inbound tourism is on the rise, with key markets including the GCC countries, Asia, and Europe. International visitors are drawn to Aseer’s offerings of cultural immersion, adventure, and wellness tourism.
Additionally, outbound tourism trends influence domestic travel, as many Saudi travelers seek more affordable and closer alternatives, further boosting Aseer’s appeal..

1.1. Domestic Tourism

1.2. Inbound Tourism

As illustrated in the graphs, inbound travel to Saudi Arabia experienced a sharp decline in 2020
and 2021, largely as a result of the global COVID-19 pandemic. However, the data reveals
a significant recovery, with a +688% surge from 2021 to 2023. Such rebound highlights the
effectiveness of strategic initiatives and the global recovery from the pandemic.

1.2.1. Top Tourism Performers in the Region

The 2023 tourism data reveals key trends and preferences in the Middle East and Africa region, with approximately 160 million tourists visiting. The United Arab Emirates, Saudi Arabia, Morocco, Jordan, and Qatar are leading destinations in the region, attracting significant numbers of visitors due to their diverse attractions, which include luxury tourism, cultural sites, and historical landmarks.

Leading Global Destination Cities Comparable to Aseer in 2023

Here are the leading global cities of 2023, recognized for their leisure, natural beauty, and
relaxation, sharing similar traits with Aseer, which attracted 8 million visitors in 2023:

Antalya, Turkey, draws an impressive 16.5 million visitors, offering a blend of nature, culture,
and relaxation, making it a highly sought-after destination.

Bangkok, Thailand, approximately 12.2 million visitors are attracted to its nature-centric experiences, vibrant markets, and tranquil nearby attractions such as floating markets and temples.

Cancún, Mexico, invites 10.8 million tourists with its turquoise waters, pristine white beaches,
and an abundance of all-inclusive resorts, making it a paradise for relaxation seekers.

Zanzibar City on Zanzibar Island, Tanzania, is celebrated for its peaceful beaches, rich culture,
and historic Stone Town, positioning it as a top choice for leisure and nature tourism.

Wadi Rum in Jordan, known as the “Valley of the Moon,” captivates visitors with its breathtaking desert landscapes, offering relaxation and adventure for explorers.

1.3. Outbound Tourism Surge: Shaping the Future of Domestic Strategy

In 2023, Saudi Arabia’s outbound tourism experienced remarkable growth, propelled by eased
travel restrictions and heightened interest in leisure travel. The number of outbound tourists
surged by 37% compared to 2022, accompanied by a 74% increase in spending, primarily
during the summer season. Many Saudi travelers favored neighboring countries, especially the
UAE, Switzerland, and Turkey, with a significant rise in leisure activities. Despite this growth, the average spending per night for Saudis dropped from SAR 599 (€144) in 2022 to SAR 332 (€80) in 2023. Looking ahead, Saudi outbound tourism is anticipated to continue its upward trajectory, with the market projected to expand at a compound annual growth rate (CAGR) of 15.28% until 2027. The significant rise in Saudi Arabia’s outbound tourism in 2023 is likely to impact domestic tourism in several ways:

  • Competition with International Destinations: Domestic tourism may face competition as
    more Saudis travel to destinations like the UAE, Switzerland, and Turkey.
  • Potential for Domestic Travel Off-Peak: Domestic tourism might increase during off-peak times as Saudis travel internationally during peak seasons.
  • Price Sensitivity: Saudi tourists are becoming more price-sensitive, leading domestic destinations to offer affordable and value-driven options.
  • Expansion Opportunities for Domestic Tourism: Despite outbound tourism growth, domestic travel remains convenient, presenting opportunities for campaigns targeting cost-effective getaways.
  • Economic Balance: To counteract reduced local spending due to outbound tourism, the domestic sector could create events and packages that appeal to the same audience.
  • Shift in Local Travel Preferences: The increase in outbound travel suggests a demand for diverse experiences, prompting domestic tourism providers to innovate with unique offerings.

In conclusion, the increase in outbound tourism will likely drive domestic tourism operators to reevaluate their products and pricing strategies. To stay competitive with international destinations, they will need to focus on off-peak times and offer unique experiences.

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