#Saudi Arabia #Economic Growth #Tourism #Davos

Tourism as Economic Infrastructure

During the World Economic Forum Annual Meeting 2026, held in Davos, Switzerland, His Excellency Ahmed Al-Khateeb, the Minister of Tourism for the Kingdom of Saudi Arabia, made a significant address underscoring the necessity of positioning tourism as a vital component of economic infrastructure. Al-Khateeb stated that for tourism to effectively drive economic growth and resilience, it must be recognized as a strategic sector rather than a mere discretionary area. This shift in perception is crucial, particularly in a world facing increasing fragmentation due to geopolitical and economic challenges.

The Minister pointed out that with global travel expected to reach approximately 2 billion international arrivals by 2030, the focus should not be on whether tourism will grow, but rather on how it can do so responsibly. "When tourism is treated as economic, cultural, and social infrastructure, it becomes a critical engine for diversification and long-term value," he explained, highlighting the need for a paradigm shift in how tourism is integrated into governmental and economic strategies.

Reflecting on Saudi Arabia's Vision 2030 initiative, Al-Khateeb illustrated how the sector has emerged as a cornerstone of the nation's economic transformation. In 2025, Saudi Arabia welcomed 30 million visitors and plans to increase that number to 150 million by 2030. The Kingdom is notably the largest single investor in tourism globally, with a diversified investment pipeline that spans destinations, aviation, digital infrastructure, and workforce development. The tourism sector now contributes nearly 5% to Saudi Arabia's GDP and employs over a million people, underscoring its significance for both economic performance and job creation.

Projects such as AlUla, Diriyah, and the Red Sea exemplify Saudi Arabia's commitment to strategic destination development. These initiatives prioritize safety, sustainability, and community welfare, establishing a model that encourages long-term investment and enhances investor confidence. This approach ensures that tourism growth also aligns with local communities' needs, preserving cultural heritage and promoting balanced development.

Additionally, Al-Khateeb announced the 'Beyond Tourism' initiative, developed in collaboration with the World Economic Forum. This transformative project is designed to elevate the discourse around tourism from industry-specific discussions to a broader leadership focus. The initiative aims to harmonize policies, financial backing, and innovative practices across various aspects of tourism, including sustainability, inclusivity, and resilience.

The Minister stressed that tourism, despite being a $10 trillion global industry, often remains undervalued in governmental economic strategies. He emphasized the need for coherent policies that recognize tourism as a driver of productivity and connectivity. Such recognition would dramatically enhance its role across various sectors like infrastructure, trade, and industrial policy.

Moreover, Saudi Arabia introduced the TOURISE platform, which facilitates collaboration among governments, investors, and industry leaders to accelerate tourism initiatives. Since its inception, TOURISE has successfully gathered nearly 10,000 leaders from over 100 countries, catalyzing over $113 billion in tourism investment. The next gathering of this global platform is scheduled for March 2027, where further discussions on tourism's future will take place.

Tourism accounts for an estimated 10% of the global GDP and supports more than 357 million jobs worldwide, making it one of the most inclusive sectors in the economy. Al-Khateeb noted that beyond its economic impact, tourism serves as a bridge between cultures, fostering understanding and dialogue, especially in challenging times of geopolitical tensions.

During his speech, he urged global leaders and institutions to recognize tourism's significance within economic policies, advocating for increased international cooperation to harness tourism in bolstering economies worldwide. He highlighted that many countries, especially in regions like Africa and Latin America, lack adequate tourist inflows. Addressing this imbalance could aid these nations in developing their tourism sectors and improving overall economic conditions for greater global benefits.

Ultimately, His Excellency Ahmed Al-Khateeb's address at the World Economic Forum serves as a clarion call for elevating tourism within economic frameworks globally, promoting growth, resilience, and cross-cultural exchange. His vision, alongside Saudi Arabia's efforts and investments, stands to redefine the sector's role in an interconnected world. The dialogue and partnerships fostered throughout the week in Davos further demonstrate Saudi Arabia's commitment to being a responsible global player and a catalyst for transformative growth in tourism.