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Behind every successful destination is a story of adaptation and foresight. For Saudi Arabia, it’s about accepting substitution and rewriting the narrative. As the country reaches its tourism target of one hundred million visitors seven years early, the sector is poised for unprecedented innovation and growth. Travel agencies in the region now face the challenge of recalibrating to keep up with emerging trends and new market realities.
SkiftX spoke with Muzzammil Ahussain, CEO of Almosafer, to better understand the evolving dynamics shaping the future of Saudi Arabia’s tourism landscape, as well as the key forces and opportunities that are driving the sector forward.
SkiftX: How has the way other people plan and enjoy their trips in Saudi Arabia been replaced in recent years?
Muzzammil Ahussain: Saudis continue to explore destinations and call for exceeding pre-pandemic levels. More and more people are contemplating luxury getaways and experiential tourism across the GCC (Gulf Cooperation Council), Europe and Asia, with trending destinations including Turkey. and Thailand driven by simple visa accessibility.
Domestic tourism accounts for more than 40 percent of our consumers’ booking volume, indicating that the country’s efforts to advertise local tourism are effective. While tourism and key cities continue to play a major role in national reserves, new recreational destinations such as Abha and Taif, as well as luxury getaways such as AlUla and the Red Sea, have noticed an expansion in demand.
Saudi travelers spent more on longer flights in 2023, with average duration and spending higher than pre-pandemic levels. There has been a shift towards more sumptuous and meaningful reporting post-Covid. At the same time, cheap airline bookings have increased, with travellers apparently preferring cheap flights and spending more on destinations.
SkiftX: What key opportunities do you foresee new technologies driving expansion and innovation within the region’s tourism industry?
Ahussain: Technological inventions have revolutionized client reporting in the region, and virtual platforms have become popular gold for end-to-end planning.
B2B portals and distribution platforms are also driving industry expansion, while white-label responses allow partners to adopt heavy investments in complex-generation IT. This fosters a more inclusive tourism ecosystem and drives expansion at all levels of the industry.
The future of tourism is based on uninterrupted virtual innovation, adding artificial intelligence for personalized recommendations, virtual truth for virtual tours, and blockchain for secure transactions. Saudi Arabia is positioning itself as a major hub for virtual tourism, in line with Vision 2030. , staying at the forefront of those technological advancements. Almosafer will continue to be a key driver of the sector’s virtual development.
SkiftX: As the travel needs of businesses and governments evolve, what new answers is Almosafer introducing to redefine travel management and how are they achieving their operational efficiency?
Ahussain: Almosafer Business, our corporate and government consumer department in the Kingdom, provides custom-designed control facilities by integrating Almosafer’s technology, advice and expertise from our more than 40 years of experience in the local market. We serve more than 140 large enterprises and government entities as a one-stop-shop for end-to-end control facilities. Our digitized formula provides a seamless experience, making every step traceable, leading to greater efficiency.
We also recently partnered with American Express Saudi Arabia to enable our corporate consumers to centralize their bills through their Corporate Travel Account (CTA). This consolidates and improves visibility into corporate spend, offering consumers a tailor-made, streamlined enterprise control solution.
SkiftX: What evolution of key destinations is making Saudi Arabia’s underexplored spaces more available to foreign tourists?
Ahussain: Saudi Arabia is making big investments in infrastructure, new airports, increased flight frequency, more routes, the creation of ground transportation facilities, and a richer diversity of “things to do,” making it less difficult for global hotel brands to expand. to little-explored territories, driven by the growing interest of domestic and foreign tourists.
Entry Control Corporations (DMCs) also play a vital role in offering on-site services. They raise awareness of local offerings in collaboration with regional destination management offices (DMOs). Improved connectivity and global marketing are bringing uncharted territories to the forefront, and our DMC, Discover Saudi, is well-positioned to respond to the influx of travelers from around the world.
Almosafer’s recent partnership with the upcoming airline Riyadh Air, investments in select accommodations, and ongoing collaborations with the Saudi Arabian Tourism Authority and key players in the ecosystem contribute to foreign tourists enjoying an original immersion in the Kingdom.
SkiftX: How does Saudi Arabia plan its devoted tourism infrastructure?
Ahussain: Religious tourism is the largest economic contributor to the country’s tourism sector. The two holy cities of Mecca and Medina are popular destinations throughout the year, according to Almosafer’s customer and inbound tourism data. The Saudi government aims to increase the number of pilgrims to more than 30 million by 2030 and is investing in infrastructure to improve mosques, hotels, transport and tourist facilities in Mecca and Medina.
A number of projects are underway to accommodate an increasing number of visitors, including the expansion of the Holy Mosque and urban progression projects such as Rua Al-Madinah, a gigantic mixed-use real estate project near the Prophet’s Mosque, and the gigantic Masar progression project in Mecca.
Recent reforms in Saudi Arabia now allow visitors to perform Umrah on any visa and have simplified visa policies, so that GCC citizens can download a visa on arrival.
SkiftX: What does Almosafer play in streamlining the Hajj and Umrah experience?
Ahussain: Mawasim, Almosafer’s committed Hajj and Umrah tour operator, provides its B2B partners around the world with a portal to create seamless pilgrimage experiences. Religious hiking is central to our expansion and will be strengthened in 2024 with integration with the Saudi Ministry of Hajj and Umrah. This will expand our Umrah package offering globally.
Mawasim is also among the few legal enterprises through the ministry that offers Hajj-related services in selected destinations through its B2C platform, Nusuk Hajj, and plans to serve 10,000 Hajj pilgrims annually, adding new markets.
Almosafer was also recently appointed as the Flying Spouse for the Hajj program direct through Nusuk Hajj. This marriage will be a delight for pilgrims from Europe, America, Australia, New Zealand, and select countries in Asia and Africa, with reliable travel characteristics. and a variety of additional facilities on the Nusk Hajj platform.
SkiftX: What trends are shaping Saudi Arabia and the travel market lately?
Ahussain: Saudi Arabia’s rich cultural heritage and varied geography make it an ideal destination for those looking for immersive reporting. Almosafer has noticed a growing demand for activities and recreation among Saudi residents, mainly in Riyadh and Jeddah, with personalized reporting such as scuba diving, snorkeling. and other adventure and nature-based activities that are popular with domestic travelers.
Almosafer continues to promote local activations through partnerships with key industry stakeholders. In addition, SMEs through Almosafer Activities, the Kingdom’s leading activity and excursion marketplace, which is now incorporated into Almosafe’s other travel activities and sells directly to domestic travelers.
SkiftX: What key trends do you think will shape the Saudi tourism sector over the next decade and how will stakeholders adapt?
Ahussain: While devotional tourism has historically been the cornerstone of the local tourism sector, recreation and entertainment will become other major economic drivers in the future. The progression of gigaprojects shows the ambitious scale of Saudi Arabia’s vision for the future. The increase in outbound, inbound and inbound tourism, improved local infrastructure, and the offering of seamless virtual reporting will make some visitors have unforgettable visits, making Saudi Arabia a must-visit destination.
For more information about Almosafer, click here.
This content was created in collaboration between Almosafer and Skift’s branded content studio, SkiftX.
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