Tourism sector in Middle East set to hit pre-pandemic level in 2023: UNWTO

The famous elephant rock in Al Ula, Saudi Arabia – a popular tourist destination (Shutterstock)
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Updated 18 January 2023
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Tourism sector in Middle East set to hit pre-pandemic level in 2023: UNWTO

RIYADH: The Middle East region witnessed the world’s strongest increase in international arrivals in 2022 in a clear sign the tourism sector is on its course to rebound to pre-pandemic levels this year, according to UN’s World Tourism Organization.

The latest data from UNWTO shows that international arrivals in the Middle East climbed to 83 percent of pre-pandemic numbers last year, followed by Europe, where the number of tourists hit 80 percent.

The report, however, noted that Asia and the Pacific reached only 23 percent of the pre-pandemic level in 2022, as most of the countries in the region, including China, only started easing pandemic-related restrictions in recent months.

Meanwhile, the data suggested that Africa and the Americas both recovered about 65 percent of their pre-pandemic visitors.

The UN agency further said that more than 900 million tourists traveled internationally in 2022, double the number of travelers compared to 2021, though still just at 63 percent of pre-pandemic levels.

According to UNWTO’s forward-looking scenarios for 2023, global international tourist arrivals could reach 80 percent to 95 percent of pre-pandemic levels in 2023.

UNWTO, however, added that this expected recovery will be dependent on various factors, which include the extent of the global economic slowdown and the status of the Ukrainian conflict.

“UNWTO anticipates a strong year for the sector even in the face of diverse challenges including the economic situation and continued geopolitical uncertainty,” said UNWTO Secretary-General Zurab Pololikashvili.

He added: “Economic factors may influence how people travel in 2023 and UNWTO expects demand for domestic and regional travel to remain strong and help drive the sector’s wider recovery.”

It should be also noted that, by mid-January, at least 32 countries have imposed restrictions on Chinese travelers, and this factor will play a crucial role in the recovery of the Asia-Pacific region in 2023.

Earlier in January, Marriott Bonvoy’s 2023 Travel Trends research report had suggested that travelers in Saudi Arabia and the UAE prefer wellbeing-led holidays in 2023 and are planning to enjoy more vacations this year.

The report added that 93 percent of travelers in Saudi Arabia and the UAE are planning vacation trips in 2023, with around a quarter planning on staying in luxury accommodations while away.


Closing Bell: Saudi main index dips slightly to 10,912

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Closing Bell: Saudi main index dips slightly to 10,912

RIYADH: Saudi Arabia’s Tadawul All Share Index was broadly stable on Tuesday, as it shed just 4.61 points or 0.04 percent to close at 10,912.43.

The total trading turnover of the benchmark index stood at SR3.99 billion ($1.06 billion), with 68 of the listed stocks advancing, and 194 declining.

The Kingdom’s parallel market Nomu gained 0.68 points to close at 23,358.18.

The MSCI Tadawul Index also edged up by 0.03 points to 1,467.56.

The best-performing stock on the main market was Saudi Cable Co. The firm’s share price rose by 9.72 percent to SR161.40.

The share price of Almasane Alkobra Mining Co. advanced by 9.25 percent to SR108.70.

Al-Jouf Agricultural Development Co. also saw its stock price climb by 6.46 percent to SR48.10.

Conversely, the share price of Tabuk Agricultural Development Co. edged down by 3.67 percent to SR7.61.

On the announcements front, Dar Al Majed Real Estate Co. said that it signed a Shariah-compliant banking facilities agreement with the Arab National Bank valued at SR500 million.

In a Tadawul statement, the company revealed that the agreement is aimed at supporting the firm’s expansion plans and financing its future projects in line with its approved strategic plan.

The financing term extends for up to five years and includes a grace period of two years.

The share price of Dar Al Majed Real Estate Co. declined by 0.99 percent to SR9.

Saudi Paper Manufacturing Co. said it signed a credit facilities agreement with Kuwait Finance House Bahrain, which includes facilities allocated to finance working capital and medium-term facilities amounting to $40 million.

In a Tadawul statement, the company revealed that the working capital facilities extend for 12 months and are renewable.

The medium-term facilities last for 48 months, including a six-month grace period.

The credit facilities will be used to cover the company’s working capital for operational activities, plans and expansions in purchasing raw materials, in addition to restructuring medium-term debts to improve cash flows.

The share price of Saudi Paper Manufacturing Co. edged down by 1.09 percent to SR58.80.