Development of Tourism in Saudi Arabia - Research Paper Example

Development of Tourism in Saudi Arabia Presented Tourism is one activity that has attracted heavy investment more so in Saudi Arabia. In a bid to diversify and reduce over reliance on petroleum, the Kingdom of Saudi Arabia has heavily invested in the development and improvement of infrastructures and tourist attraction sites. The tourism sector plays a vital role in creating employment, earning the country foreign exchange and boosting the living standards of natives. The tourism sector in Saudi Arabia is much affected by several factors. Some of the factors can be controlled, others are beyond human control. This research study aims at determining the different factors that affect the tourism industry of Saudi Arabia. It also seeks to determine people’s behaviour and attitudes towards the industry developments or changes that have resulted in the sector. DEVELOPMENT OF TOURISM IN SAUDI ARABIA 1.0 INTRODUCTION Across the world, states, countries and cities are heavily investing on development projects that will increase their political, social and economic capacities Saudi Arabia being no exception. Tourism is one activity that has attracted heavy investment more so in Saudi Arabia - a desert country that intends to diversify its economy. The country has for a long time relied on petroleum and gas to drive its economy. With the Saudi government taking every possible measure to attract foreign tourists and encourage locals to spend their vacations in the country, the government has notably achieved success in improving its tourism sector. Indeed the Kingdom of Saudi Arabia has heavily invested in the development and improvement of infrastructures and tourist attraction sites. Other stakeholders and organizations that are directly impacted by the tourism industry have similarly tried their best to ensure sustainable developments are achieved within this vital sector of the Kingdom’s economy. One thing however that must be realized is that the success of the industry depends both on internal and external factors some of which may currently be unknown to the stakeholders. It is these factors that this research seeks to examine while also keeping focus on developments and changes that may affect tourism in Saudi Arabia. In addition, the research seeks to determine the attitudes of nationals and tourists towards the steps, developments and changes that have occurred in the tourism sector of the country. Aims & Objectives 1. To identify key local and regional developments, trends and changes that might impact the tourism industry of Saudi Arabia. 2. To identify the factors that affect tourism in Saudi Arabia 3. To examine industry attitudes and consumer behavior towards Saudi Arabia’s tourism industry Limitations and Key Assumptions This research will be limited to the Middle East and more specifically Saudi Arabia as a country and kingdom. With reference to the description of tourism, this research will adopt a less strict definition of tourism and as such will accept those visiting the country even on non-leisure missions as tourists. This means that religious tourism, leisure tourism and business tourism will all be considered in the study without any bias. A further development of the tourism industry in Saudi Arabia depends on several factors. The establishment of these factors and people’s attitudes towards the sector will help the government of Saudi Arabia and other stakeholders to make necessary changes within the sector and to respond adequately to regional developments and changes that affect the industry 2.0 LITERATURE REVIEW Tourism Tourism generally involves travelling for leisure, business and/or recreation (Cooper, Fyall & Wanhill, 2005). According to the World Tourism Organization (1995), tourism involves staying in a place outside one’s usual environment for over 24 hours but not more than 12 consecutive months for business, leisure and other reasons not unrelated to the performance of duty for remuneration within the place visited. It is worth noting that tourism has over the years emerged as a popular activity of leisure around the world. The United Nations classified tourism into three forms in 1994; domestic tourism, inbound tourism and outbound tourism (UNWTO, 2009). According to the international body, domestic tourism involves the travelling within a country of residents of the same country. In bound tourism involves non-residents engaging in tourism within a particular country. Outbound tourism on the other hand involves the outside travel of residents to other countries (UNWTO, 2008). The UN, out of the above three forms of tourism, has derived different categories of tourism; internal tourism, national tourism and international tourism (UNWTO, 1995). Internal tourism comprises inbound tourism and domestic tourism, international tourism comprises outbound tourism and inbound tourism while national tourism comprises outbound tourism and domestic tourism. One other form of tourism as coined by Korea’s tourism organization is intra-bound tourism which is slightly different from domestic tourism as it encompasses the making of policies and the implementation of national policies that are related to a country’s tourism industry. Tourism, for many countries, is vital. For example, Thailand, Egypt, the United Arab Emirates, Seychelles, Maldives, Bahamas and Fiji earn a lot of money out of tourism. The tourism sector also plays a great role in creating employment while at the same time providing markets for goods and services related to tourism (SAMIRAD, 2005; Theobald, 1998). Service industries like transportation services such as, airlines, and taxis, cruise ships, entertainment venues such as music venues, theatres, casinos, amusement parks, and casinos and hospitality services such as resorts, and hotels are just but a few of those that enjoy massively from thriving tourism in a place (Chad, 2003; UNWTO, 2009). Tourism in Saudi Arabia Apart from petroleum and oil production, tourism is Saudi Arabia’s other main source of revenue according to Hejleh (2009). Sight seeing in the country covers the country’s popular heritage points as well as its striking desert landscapes. In addition, tourists can enjoy partaking of the numerous cultural events and festivals held by the nationals. Saudi Arabia has several valleys, mountains and Red Sea beaches that attract quite a number of visitors to the country (Hejleh, 2009). The beaches which have turquoise water are in fact known to be having some of the best diving sites in the world. Certain historical sites also attract a number of tourists in the country. One such site is the Nabatean area with its famous ruins located a relatively short distance from Medina while another attraction is the famous bridge that connects the country to Bahrain. An important resource in Muslim countries that have diverse and rich heritage is religious tourism. Religious tourism may generally be defined as tourism that springs from people’s belief or faith. The religious tourism market according to the first Religious Tourism World Congress is worth approximately 18 billion USD per year. Indeed according to the World Tourism Organization, approximately 300 to 350 million tourists visit, for religious reasons, different places. The cornerstone of tourism in Saudi Arabia is known to have been religious tourism. Out of religious tourism, the entire tourism industry has greatly benefited as the kingdom has continuously had to improve its infrastructure to better serve the continuously rising number of pilgrims that come to visit religious sites. Saudi Arabia has remained a favourite destination for Muslims who wish to engage in religious tourism. Places commonly visited by such tourists include the region of Al Baqia among others. During the month of Hajj alone, over three million pilgrims visit the city of Mecca per year according to the Royal Embassy of Saudi Arabia (2009). For umrah, during the month of Ramadan, around two million pilgrims visit Mecca each year. The rest of the year sees the religious site receive for umrah approximately four million pilgrims. While this act of religious pilgrimage may not really be considered as tourism in the strictest sense, the place attracts so many people both from within and outside Saudi Arabia. The main attraction during religious tourism is to observe religious sites and to see the Kaaba. Mecca receives this huge number of religious tourists as a result of the fact that pilgrimage to the religious city is among Islam’s five pillars. For non-Muslims, however, visiting certain religious cites is strictly forbidden. Growth of the Tourism Sector in Saudi Arabia The Middle East has for a long time lagged behind as a tourist destination (UNWTO, 2009). This trend has however began to change with Saudi Arabia taking the lead in wooing tourists to exploit its hugely untapped potential as a favourite destination. Since Saudi Arabia is almost fully dependent on oil attempts have been made in the past by Prince Sultan Salman to change this trend by encouraging tourism. Ever since this move was taken in 2003 (Asia Rooms, 2009), many tourists have seized the opportunity to spend their holidays or vacations in the country. Saudi Arabia as a Kingdom has through its, Tourism Higher Authority, made efforts to develop tourism as part of its strategy to achieve overall economic diversification according to SAMIRAD (2010). The Authority is tasked with overseeing the overall expansion of the facilities and services related to the Kingdom’s tourism industry. In September 2003, the then Secretary of the Supreme Commission of Tourism and Antiquities (SCT) in Saudi Arabia, Prince Sultan bin Salman, unveiled a 20 year strategic plan aimed at the development of the kingdom’s tourism sector (Asia Travel Tips, 2003). This significant measure was taken by the Supreme Commission as a desperate measure to ensure that the Kingdom becomes a major attraction to both international and domestic tourists. According to a paper entitled “Tourism Development in the Kingdom of Saudi Arabia” presented by Prince Sultan, 57.6 million domestic trips are handled per year by the Kingdom. Further to this, about 7.6 million inbound trips are registered by the country annually (Asia Travel Tips, 2003).The commission in 2003 projected that a total of 141 million trips would be made in the country which could create up to 2.3 million jobs related to the Kingdom’s tourism industry. Saudi Arabia’s tourism industry has achieved significant growth over the past decade with its main drivers being the attraction of private sector investments, the achievement of economic equilibrium, the creation of new job opportunities, diversification of the economy, and the conservation of the kingdom’s environmental the cultural heritage (Asia Travel Tips, 2003). Tourist expansion projects in the Kingdom include Al-Kar Tourist Village, Al-Hada resort and Cable Car project in Governorate. The project which is projected to cost a total of SR 70 million includes the development of tourist hotels, family parks, restaurants and playgrounds on top of the modern cable car route. In 2003, the Secretary General of Saudi’s Tourism Higher Commission declared that the sector had reached a phase that would see it achieve massive developments. Ever since, the commission has always affirmed its commitment to full cooperation with partners in private and public sectors through staged programs, executive plans as well as other mechanisms that will result in the achievement of the goal of developing the tourism sector. The Kingdom anticipates that at the current growth rate, it would attract, in 2020, approximately 45.3 million tourists (World Tourism Organization, 2004). This would result in the expenditure of close to SR 80 billion by tourists within the country. In order to achieve this vision, the Kingdom needs to encourage private investors to construct at least 74,000 housing units, and 50,000 hotel rooms besides training 2.3 million nationals to offer service in the sector (SAMIRAD, 2010). Role of the Saudi Commission for Tourism and Antiquities Tourism The SCTA (Saudi Commission for Tourism and Antiquities Tourism), formerly SCT (Supreme Commission of Tourism) has played a major role in the development of the tourism sector (Cordesman, 2003). The organization which is state run was purposely established to oversee the development of the tourism sector of the Kingdom of Saudi Arabia. The commission has mainly directed its focus on supporting and encouraging domestic tourism through conducting and sponsoring tourism activities across the Kingdom. The main aim of the commission has mainly been to encourage Saudi nationals to consider spending their vacations within the country. The Supreme Commission of Tourism in Saudi Arabia, according to plan, has managed to start the restructuring process of the tourism sector with great focus being directed to the reinvigoration of tourism as an industry (SCTA, n.d). The SCTA, in this end, has ventured in the establishment of strong and practical partnership among the private sector, the society at large and the public sector. In addition, the commission has contributed much in the establishment of provisional tourism bodies and associations of travel agents and for hotels (Asia Travel Tips, 2003). One of the commission’s main goals with respect to encouraging tourism and developing the Kingdom’s tourism sector is removing hurdles that may hamper the free flow of investment. Yet again, it has done a lot in marketing Saudi Arabia as a tourist destination to the world by sponsoring exhibitions. One such exhibition was held in Dubai; more specifically in the World Trade Centre. Saudi Arabia’s pavilion hosted at least 56 exhibitors who represented both the private and public sectors (Asia Travel Tips, 2003). The SCT has also launched serious marketing campaigns targeting the United Kingdom and other European countries. Through the GCC (Arab Gulf Cooperation Council), a tourism investment company has been established with an initial investment of SR 500 million ((Asia Travel Tips, 2003; Anthony, 2006). The company has since its establishment invested in a wide range of activities including providing transportation, constructing hotels, and offering catering and support services for Hajj and Umrah Companies. Further, the company has invested much in Islands in the Red Sea one of these being Farasan. Advantages and disadvantages of tourism in Saudi Arabia Out of the total 30 million domestic tourists that visit various places about 50% are religious tourists. Yet again, over 50% of inbound tourists visit the Kingdom for religious reasons. Religious tourism has seen the mushrooming of hotels, development of infrastructure and transport networks, and encouraged to some extent the rise in medical tourism. The sector has also let to the creation of millions of jobs for nationals on top of earning the kingdom foreign exchange. Tourism in Saudi Arabia, like in other parts of the world has brought great benefits to the country. With more tourists different businesses have come to be established and better infrastructures developed on top of the foreign exchange sometimes earned by the host country (World Tourism Organization, 2003). The industry has also created several jobs to nationals and led to a decrease in unemployment rate and simultaneously an increase in average living standard. To a great level, tourism has helped slacken the rate of depopulation in rural areas. Further, it has led to better understanding between people from different backgrounds, religious affiliations and cultures (Patsy, 2003). Tourists have similarly benefited by getting relaxed and learning new ideas as they tour different places. Generally, the benefits of tourism far outweigh its disadvantages. A few advantages tat may be associated with tourism include environmental damage such as through the destruction of sand dunes and pollution. Culturally, foreigners may act in disregard to national and traditions of nationals. Some tourists may also turn out to be criminals and may perform illegal activities in the country. Factors Affecting Tourism in Saudi Arabia Some of the factors that contribute to the development of tourism in any place include transport and accommodation, and the economic conditions of the broader world according to the World Tourism Organization (2004). In fact one main factor that has encouraged the growth of tourism in Saudi Arabia like in certain other places is the availability of cheap and affordable airlines (Global Culture, 2007). In this respect the country has remarkable accommodation and transport systems that specifically meet tourists’ needs. Over the past few years, the tourism sector in Saudi Arabia has developed fast to attract millions of tourists from across the globe. Training notably has played a significant role in this expansion with great tribute in this respect being directed to the Prince Sultan College for Tourist and Hotel Management according to Daher, 2007). At least three other academies have also been established in the Kingdom to help in the training of personnel that will work in the tourism sector. Security is one important factor that tourists take into consideration before making visits to various places according to Geoffrey, Richard & Timmermans, 2004). The SCT has established a tourist-security sector that is aimed at studying factors that could threaten the growth of the tourism industry. One other challenge that the country experiences with respect to tourism is its harsh desert climate. The country experiences extreme temperatures that keep changing depending climate shifts. This has grossly affected the flow of tourists in the country with most tourists preferring to visit in mid-April, February, November and October. Those who wish to visit the Asir Mountains and Taif and its environs, for example, preferably visit in October or April. 3.0 METHODOLOGY Applying well recognized research methods during research is of paramount importance if the true state of the field must be noted. This section will be mainly devoted to discussing how the study will be conducted. Since tourism in Saudi Arabia is a wide industry, the research will be conducted through sampling and by consulting secondary sources of data such as journals, books, and websites belonging to well recognized persons. In order to collect primary data, the research will be conducted by using questionnaires. Respondents who will consist of tourists, government officials, and business people in the tourism sector and nationals that live around tourist attraction sites will be given questionnaires specifically desired for the study. Respondents will be of good age; adults according to the laws of Saudi Arabia. This will go a long way in avoiding cases that may arise in dealing with minors. Since participants will come from different parts of the world, it is noted that they will be speaking different languages. The questionnaire will be translated into as many languages as possible to enable respondents participate effectively. Respondents shall only participate out of free will and without any form of compulsion or coercion. The raw data mined from the field shall be kept secret from third parties in accordance with international standards of doing research. Also, respondents will not be required to provide their personal identifications. In order to ensure that the survey runs smoothly, adequate preparations shall be done in good time and according to the time schedule. Also, all permissions and authorizations will be sought way in advance before the actual survey begins. Since the research is relatively broad, the time allocated for its execution will be three months. In general the survey will be conducted in line with international standards of doing research. In view of the three objectives of the research, respondents will be required to suggest local and regional developments and trends that they could have noted to impact Saudi Arabia’s tourism market. Respondents shall also be required to note factors that affect the sector and weight them accordingly using a scale of 1-5 with 1 carrying most weight and 5 carrying the least. Participants will also note their attitudes and behaviours towards the tourism industry. A similar scale to that mentioned above shall be used for different variables. 4.0 WORK SCHEDULE The following table outlines how time will be spent during the research for a period of 12 weeks. Table 1: Work Schedule S/No. Activity Time 1 2 3 4 5 6 7 8 9 10 11 12 1 Resource acquisition 2 Preparation of materials 3 Data collection 4 Data Analysis 5 Writing of the final report 6 Presentation and Submission of the report 6.0 EXPECTED RESULTS It is expected that the survey when properly conducted shall reveal more factors that affect Saudi Arabia’s tourism industry. Further, people’s attitudes towards tourism and the tourism sector will be revealed. In addition, the survey will reveal the regional factors that significantly affect the country’s tourism industry. This will be helpful in making adjustments as the government and other stakeholders strive to improve the country’s tourism sector. REFERENCES Anthony S. 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