Saudi Arabia’s domestic tourism remains strong despite return of international travel

Saudi Tourism Authority and Almosafer signed a deal at Arabian Travel Market 2023 (Supplied)
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Updated 21 May 2023
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Saudi Arabia’s domestic tourism remains strong despite return of international travel

RIYADH: Despite the full resumption of international travel, domestic tourism continues to remain strong in Saudi Arabia, according to Almosafer, the Kingdom’s leading company in the sector.

The firm’s CEO made the comments to Arab News following the signing of a deal between the Saudi Tourism Authority and Almosafer, which is part of Seera Group, at Arabian Travel Market 2023 held in Dubai.

The deal aims to promote Saudi Arabia as one of the top travel destinations in the Gulf Cooperation Council. The agreement was signed between Munirah Abanomy, head of marketing partnerships for the Middle East and Africa at the STA, and Fahad Al-Obailan, chief tourism officer at Almosafer.

In an exclusive interview, Almosafer CEO Muzammil Ahussain reflected on a report published by his company that showed domestic bookings “made up 56 percent of all bookings so far this year, up from 47 percent for the same period before the pandemic in 2019.” 

He said that people are keen on traveling within the Kingdom even after the full resumption of international travel and the number of domestic tourists is steadily rising. 

As per the agreement signed at the industry event in Dubai, the travel company, through its Hajj and Umrah tour operator Mawasim and its destination management company Discover Saudi, will also help promote domestic tourism to its business customers in the Middle East and North Africa region. 

“Almosafer has several different segments that it serves. We have the consumer segment, which provides a B2C channel for customers,” Ahussain said. 

The CEO said: “We provide B2C products for people in Kuwait and the rest of the GCC. So, we provide them access to Saudi Arabia, for example, (tours to) Makkah and Madinah and other parts of the Kingdom.”

Ahussain said that Almosafer has partnered not only with the STA but also with Saudia’s Alfursan and Al Rajhi Bank’s Mokafaa loyalty programs to promote tourism in the Kingdom. 

However, the report showed that Saudis also continued to travel abroad, and since the resumption of travel to Turkiye in the summer of 2022, the destination has shot back to the top of the list for visitors from the Kingdom.

Other popular destinations include Dubai, Cairo, London, and Doha.


Closing Bell: Saudi main index closes in red at 10,818 

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Closing Bell: Saudi main index closes in red at 10,818 

RIYADH: Saudi Arabia’s Tadawul All Share Index dipped on Thursday, losing 126.83 points, or 1.16 percent, to close at 10,818.32. 

The total trading turnover of the benchmark index was SR4.5 billion ($1.2 billion), as 26 of the listed stocks advanced, while 233 retreated. 

The MSCI Tadawul Index decreased, down 15.78 points, or 1.07 percent, to close at 1,457.04. 

The Kingdom’s parallel market Nomu lost 137.69 points, or 0.58 percent, to close at 23,413.78. This comes as 26 of the listed stocks advanced, while 40 retreated. 

The best-performing stock was Alistithmar AREIC Diversified REIT Fund, with its share price surging by 3.81 percent to SR7.36. 

Other top performers included Etihad GO Telecom Co., which saw its share price rise by 3.08 percent to SR91.90, and Consolidated Grunenfelder Saady Holding Co., which saw a 2.55 percent increase to SR9.65. 

On the downside, Thimar Development Holding Co. was among the weaker performers, with its share price falling 6.52 percent to SR33. 

Baazeem Trading Co. fell 4.94 percent to SR6.35, while Fawaz Abdulaziz Alhokair Co. slipped 4.05 percent to SR18.02. 

On the announcements front, Saudi Electricity Co. has officially commenced the offering of a US dollar-denominated senior unsecured sukuk, following its earlier announcement. 

The two-day offering, running from Jan. 15 to Jan. 16, will be carried out through a special purpose vehicle and is open to eligible local and international investors. 

According to a Tadawul statement, the final amount, pricing, and maturity terms of the sukuk will be determined based on prevailing market conditions, with a minimum subscription set at $200,000. 

SEC has mandated a consortium of sixteen global and regional financial institutions, including J.P. Morgan, HSBC, and Standard Chartered Bank, as Joint Lead Managers for the issuance. Upon completion, the sukuk are expected to be listed on the London Stock Exchange’s International Securities Market. 

This issuance falls under SEC’s international sukuk program and is being offered in reliance on Regulation S, meaning it will be sold exclusively outside the US to non-US persons. 

SEC’s shares traded 0.07 percent higher on the main market to reach SR14.08.