SR 11 billion generated from over 300 tourism events in 2015 in the Kingdom
ATP- Arab tourism portal- The economic returns from tourism events in the Kingdom for the year 1436/2015, was over SR 11 billion achieved through more than 300 festivals and events. This revenue came from the POS at sites, tours surrounding the events, as well as housing for the visitors. In addition, their role in reviving tourism activity throughout the Saudi markets, like restaurants and various service centers where the festivals were held, adding to the economic movement.
According to sources in SCTH, the volume of investment in the events sector in 2015 has exceeded more than SR 100 million, through investment of over 130 companies and organizations in this sector.
In 2015, the festivals across the Kingdom have received over 11,700,000 visitors with a growth exceeded 15% compared to last year, and the visitors spending exceeded 30% compared to the same period.
The sources of SCTH expected the revenue from the tourism events to rise to SR 15 billion during the next two years, especially with the remarkable increase and diversity of tourism events and the increased turnout by visitors towards them.
Tourism festivals that were held since 2005 until now have contributed to create over 70,000 temporary jobs in the tourism events and their accompanied activities.
SCTH has, so far been organizing, supporting and sponsoring over 855 events during the past four years across different parts of the Kingdom.
The number of tourism events in 2012 were 139, and in 2013 they were 209, and in 2014 reached they 247, and in 2015 they stood at 300. These varied between shopping, desert, heritage and other events associated with agricultural products in the rural areas, in addition to sports and entertainment festivals.
A recently released report by SCTH states that the number of implemented events in the Makkah region during this period rose to 99 events, and in Al Taif municipality to 42, Al Baha 33, Najran 31, Riyadh 96, Northern Border 34, the Eastern Province 123, Hail 23, Al Jouf 41, Jazan 45, Al Qassim 173, Tabuk 43, Asir 38, and Al Madina 34.
A number of owners of the organizations that are engaged in the tourism events operation consider the event industry to be a new and promising economic activity and it can grow rapidly seeing the remarkable increase in the festivals annually. They indicate that this industry can achieve good economic returns, whenever the event operator is skilled in management of the festivals, doing it professionally and with high quality.
A prominent event operator and investor in tourism, Dr. Mogbil Al Mogbil, considers tourism events as the future investment in Saudi Arabia, stressing the role of SCTH in regulating and developing this industry and making it into a professional business rather than one managed by lay individuals.
Al Mogbil believes this industry is still facing some challenges, the most important of them being, holding of tourism festivals is associated with the local holidays, which imposes a great pressure on the event operators for their viability and therefore resulting in poor festivals.
Event operator, Abdul Aziz bin Abdullah Al Mahwoos, in his turn said, “The market needs more investors in this sector in light of the annual increase in the number of the festivals and tourism events and the greater turnout of individuals as well as the potential of their being held around the year.”
Dr. Al Mahwoos said, “This activity achieves high investment and revenues. Event operation is an important industry requiring professional operators,” adding that, the number of professional operators in this sector is not enough and the market needs more professionals in this area, especially in the investment area.
Dr. Al Mahwoos on the other hand expressed his appreciation for the great role of SCTH played in support of tourism event operators, whether technically or financially, especially for the promotion of operators’ performance. He praised SCTH efforts in the organization of international trips for approved operators to explore international experience in this field and promote the level of sector’s services. He also commended SCTH’s efforts in organizing a number of forums and workshops in which a number of international experts took part.
Member of the Events, Exhibitions and Conferences Committee at Makkah Chamber of Commerce and Industry, Fahad Momena, in his turn referred to the vital role of event industry, which is expected to play a great role in the economy’s recovery in case of recession, as this industry is considered as one of the most important economic tools as its development is paid a great attention by most of the countries in the world.
“For example, in USA, the income made by this industry exceeds the income made by the auto industry by about 30%, and this sector creates over a million and a half jobs annually in the US and adds over USD 250 billion to the US economy ,according to the reports of US Travel Association,” added Dr. Al Mahwoos.
Acting Director General of Programs and Tourism Projects at SCTH, Abdullah bin Abdul Malik Al Morshid, in this context said, "The events tourism enjoy high heavy demand because of the great benefits they bring to the local communities, and in the light of their direct impact on the local economies and local population, in terms of promotion of local tourism and increasing demand for the services provided to the tourists.”
"Tourism events also contribute to marketing heritage and agricultural products and promoting handicraft products and activities. Thus creating new job opportunities to a large group of local people where the events take place, especially for the youth," he added.
Al Morshid continued, “SCTH has recently announced its comprehensive program for the development of tourism events in the Kingdom during the period 2014-2018 in an effort to meet the remarkable increase in the people’s turnout towards the events and their aspiration to develop them.”
"This coincides with the conclusion of the development of Tourism Event Concept within the tourism program in the Kingdom, according to which the organization of tourism event has become a professional business and it is to be run by specialized companies only," he said.
