How Saudi Arabia, which was before solely dependent on oil, has significantly expanded its economy through tourism.

Abstract

The economic fall of the global petroleum market hit Saudi Arabia hard because of its reliance on oil. The Saudi government unveiled Vision 2030 in 2016 with the goal of weaning the country's economy off of its reliance on oil profits. To increase the tourist industry's contribution to GDP from 3% to 10% by 2030, one goal of the Vision 2030 is to launch many tourism projects such as the Red Sea Project, NEOM, and Royal 2030. This thesis gives the evaluation that is required to comprehend the function and impact of tourism on the Saudi sector and to ascertain whether the expansion of the sector is heading in the correct direction. To further assess whether Saudi Arabia's economy can stably rely on or augment its earnings from tourism, this research compares and contrasts the two industries' growth trajectories and revenue creation. The case study and its assessment were better understood via the use of mixed methodologies, which included an analysis of time series and a rigorous qualitative literature research. The study examines five key aspects of tourism: Hajj pilgrimage, business tourism, leisure activities, food and drink, and cultural heritage sites. Data collection uses both secondary and primary strategies. Secondary data helps to understand what other researchers have studied about the topic, providing a foundation for further assessment. Primary data focuses on time series analysis, which involves studying data collected at regular intervals like monthly, yearly, or daily. Time is crucial because it shows how data changes over these intervals (like using Tableau software). Time series analysis is widely used in finance, economics, engineering, and environmental sciences to understand trends and patterns in data over time. It helps to uncover underlying causes and factors that influence economic trends, making it valuable for this study focused on the economic impact of tourism in Saudi Arabia. The most crucial takeaway is that Saudi Arabia's economy may be strengthened in the long run by including tourist spending, which can augment oil's impact. The government refocused its efforts on tourism after accomplishing many of the objectives of Vision 2030 far in advance of the 2030 deadline. The data study also showed that Saudi Arabia is becoming less reliant on oil and that its economy is becoming more diversified, with tourism making a larger contribution to GDP.