Analyzers: tourism and hospitality projects lending program will create a quantum leap in tourism investment projects
Almasalla, ATP News- A number of economic analyzers have recently emphasized that, tourism and hospitality projects lending program, which was approved by the Council of Ministers last week, will create a quantum leap in tourism investment projects in the Kingdom. In addition, it will allow businesspersons, those with medium financial capacity, to expand their investments whether in the hospitality sector or in the tourism sector.
Tourism sector offers excellent opportunities for investment and expansion in its different activities. Such resolutions will have great impact on tourism sector as one of the most sectors creating jobs in the world.
They further said, the resolution is also expected to encourage investors to engage in tourism and hospitality investments in Saudi market, which will result in more hotels and tourism facilities in tourism cities and other cities that are expecting remarkable growth in tourism.
They also commended SCTA’s efforts in addressing all obstacles that may prevent improvement of investment environment in addition to creating proper environment to attract required investment funds for tourism’s different projects.
Mohammad Al Omran, an economic advisor and analyzer, in this context said, chiefly, the resolution would have great impact on the tourism sector in case the effective controls were set up to enable the citizen to benefit from the lending program in tourism and hospitality projects. Most of existing hospitality investments in Saudi market are foreign investments, thus the controls are very necessary to allow the citizens to benefit from such positive resolutions.
Both SCTA and Ministry of Finance are responsible in controlling such matter, and determining priorities for beneficiaries from this important resolution.
Dr. Abdul Wahab Abu Dahish, for his turn said, surely the resolution would encourage investment in tourism sector especially in hospitality sector for building hotels in key tourism destinations in the Kingdom. In the past, there was no effective financial support by the State to such areas, so this resolution is expected to remarkably contribute to accelerate tourism growth.
For his turn, Salim bin Yosif, a financial analyzer, said, the cabinet’s resolution is of great importance for support of tourism and hospitality growth in different parts of the Kingdom. It is expected to allow great opportunities for new investors to engage in tourism and hospitality sector as well as rolling the wheel of tourism development throughout provinces.
Noteworthy, the Council of Ministers in its session on last Monday, 2nd February, chaired by the Custodian of the Two Holy Mosques King Salman bin Abdul Aziz Al Saud (may Allah protect him), had approved the lending program for tourism and hospitality projects.
The resolution mandated the Ministry of Finance to offer loans to tourism and hospitality projects in accordance with its applied conditions. Lending conditions should give priority to the projects that are intended at least-developed cities and municipalities in the Kingdom. Maximum lending shall be 50% of project’s approved cost from Ministry of Finance and shall not exceed SR 100 million.
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