MEASURING THE IMPACT OF MEGA-EVENTS ON TOURISM AND ECONOMIC GROWTH IN SAUDI ARABIA

Abstract

The Kingdom of Saudi Arabia (KSA) recently announced its intention to expand its tourism sector as part of its economic diversification plans; a deliberate attempt to mitigate reliance on the petroleum industry. The KSA seeks to leverage the potential of the growing and expanding global tourism industry. The KSA has stated its clear intention to fully pursue this diversification, through its Vision 2030 programme, investments in developing tourism infrastructure, and deliberate efforts to host significant sporting events (mega-events). This paper evaluates whether the KSA’s aggressive approach of pouring billions of dollars into mega events and infrastructure helps the country’s bid to become one of the most favored tourist destinations in the world. It compares current efforts and previous approaches towards economic diversification used by different countries in the recent past, both those that succeeded and those that failed. This deliberate, systematic review predicts the KSA’s success if it leverages its greatest assets – the enormous wealth and investment capital provided by the sovereign wealth fund, its unique geopolitical position, a unifying branding strategy, and its budding young population. In doing so, however, the KSA needs to consider the cultural impacts of its tourist expansion efforts.