ROME — Saudi Minister of Tourism Ahmed Al-Khateeb said the Kingdom's tourism sector remained resilient despite regional geopolitical tensions that disrupted travel across the Middle East, crediting strong domestic tourism and religious travel for helping limit the impact.Speaking at the FII Priority Summit in Rome on Thursday, Al-Khateeb said Saudi Arabia recorded a slowdown following the conflict with Iran but still managed to outperform expectations during a challenging period for the global travel industry. “We started the year with a very strong performance,” he said. “We ended Q1 with about 10% growth, not only Saudi Arabia but the whole GCC.” Conflict disrupted travel across the regionAl-Khateeb said the conflict created significant challenges for airlines and travelers throughout the region.“We were hit hard by the geopolitics and by the war with Iran,” he said. He noted that airlines suspended operations, inflation increased and access to jet fuel became a major concern.“The cost of travel increased a lot,” he said. “Many carriers have canceled thousands of flights.” Despite these disruptions, Al-Khateeb said Saudi Arabia's tourism sector proved more resilient than many had anticipated.Religious tourism provided a bufferThe minister attributed much of that resilience to the Kingdom's unique position as the home of Islam's two holiest sites.“Saudi Arabia is the host of the Two Holy Mosques where more than 2 billion Muslims want to travel and visit,” he said. He said strong Ramadan and Hajj seasons helped offset weaker travel demand in other segments.“We finished the five months with a good performance, slightly less than last year,” Al-Khateeb said. “We're down by about 5% to 6%, which is a great success.” Recovery already underwayAl-Khateeb said the tourism sector across the Gulf is recovering quickly as airlines restore operations.“The whole region is turning around,” he said. He pointed to strong activity by regional carriers, including Saudia, Emirates, Qatar Airways, and now Riyadh Air.“Recovery is fast. We're bouncing back very fast,” he said. The minister described the slowdown as manageable and temporary.“At least we experienced a controllable slowdown,” he said. Domestic tourism exceeded expectationsAl-Khateeb said domestic tourism played a key role in sustaining the sector during the disruption.The Red Sea resorts were fully booked during recent holidays as many residents opted to remain in the Kingdom after international travel plans were affected.“Domestic tourism is very strong in Saudi Arabia,” he said. “It represents about 60% to 65% of our business.” He added that demand exceeded expectations as travelers chose local destinations over potentially disrupted international trips.“I was happy to see the performance as domestic tourism is much stronger than last year,” he said. Confident of creating 1.6 million tourism jobsAl-Khateeb said he remains confident Saudi Arabia can achieve its ambitious employment targets for the tourism sector by 2030.He noted that major destinations backed by the Public Investment Fund are only beginning to enter the operational stage.“Those destinations have just started to open their doors and to hire people,” he said. The minister said the Kingdom created 250,000 tourism jobs over the past five years.“In the last five years alone we created 250,000 jobs,” he said. “I believe we can do that or close to that by 2030.” Vision 2030 entering a new phaseAl-Khateeb said Saudi Arabia is moving from the development phase of Vision 2030 into a period focused on operating and expanding newly completed projects.“We are entering the phase where we are operating a lot of new destinations and a lot of new assets,” he said. He pointed to projects in the Red Sea, Diriyah and Riyadh as examples of developments now beginning to welcome visitors.“We will see accelerated growth in the next three to five years,” he said. The minister noted that the Red Sea destination alone is scheduled to open nearly 11 resorts this year after years of planning and construction.Riyadh Air and King Salman Airport to boost tourismAl-Khateeb said improved connectivity will be essential to supporting future growth.He highlighted the launch of Riyadh Air and the development of King Salman International Airport as major enablers of the Kingdom's tourism ambitions.“Accessibility is very important,” he said. The minister said travelers increasingly seek destinations that offer convenient flight options and seamless travel experiences.“People want accessibility. They want the freedom of flying in and out,” he said. AI should empower people, not replace themTurning to artificial intelligence, Al-Khateeb argued that tourism is among the industries least likely to experience large-scale job displacement because of its reliance on human interaction.“Tourism is all about people-to-people interaction,” he said. He said memorable travel experiences are often shaped by conversations with local residents, drivers, guides and hospitality workers.“At the end of the day, you will remember the story that was told to you by the human,” he said. Al-Khateeb said the tourism industry should embrace technology while preserving human connections.“We should digitalize the unnecessary and humanize the necessary,” he said. The minister said Saudi Arabia will continue deploying AI tools to improve efficiency and services, but not at the expense of hospitality and personal engagement.“We want AI to empower the people, to support the young people and help them meet with guests,” he said. “Then share our culture and our hospitality, which is very important.”
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