RIYADH: Domestic tourism in Saudi Arabia is a key driver of the Kingdom’s thriving travel sector, proving its growth was not a “blip” during the pandemic, according to a senior executive.

In an interview with Arab News, Muzzammil Ahussain, CEO of Saudi travel company Almosafer, said the surge in domestic travel during COVID-19 was not just a temporary phenomenon caused by travel restrictions, but is instead the result of deliberate and sustained investments in creating attractive offerings, events, and experiences within the country.

His comments, made on the sidelines of the third Saudi Tourism Forum held in Riyadh, came in the wake of a report by his firm that revealed a 45 percent year-on-year increase in domestic flight bookings in 2024, alongside a 39 percent rise in room night bookings.

The surge is linked to the country’s expanding tourism offerings and enhanced connectivity through low-cost carriers, with family and group travel seeing a particular boost, rising over 70 percent, the report added.

“I think what the report highlights is that domestic tourism is strong. It wasn’t just a blip during COVID because people couldn’t travel,” he said, adding: “As we said in the report, over 40 percent of all of our bookings are now domestic, and the share is growing year on year, and that doesn’t mean that international (travel) is slowing down. Actually overall travel is growing, and we see that the Saudi traveler will continue to remain strong in the foreseeable future.”

He said flight prices dropped 7 percent year on year, prompting higher spending in destinations. “People are spending more on hotels, staying longer, and spending on experiences and events,” Ahussain said. “So overall, total spend is increasing.”

Despite the growth, challenges remain. The Almosafer CEO said that the limited hotel supply during peak times, such as Riyadh season, leads to higher rates and makes it difficult for travelers to find accommodations. 

“We’ve already seen a number of initiatives to improve hotel capacity and rooms across the country,” Ahussain said, adding that such improvements would make domestic tourism more attractive at all levels, from luxury to economy. 

The company’s ongoing efforts to enhance partnerships with regional authorities and airlines are also key to this growth, and Almosafer said it collaborates closely with the Saudi Tourism Authority and regional bodies like the Aseer Investment Authority.

“We’ve had a number of signings at the Saudi Tourism Forum with different authorities from around the country to promote and market key destinations,” he added.

Ahussain also highlighted the strong partnerships Almosafer has with low-cost carriers like flynas and flyadeal, as well as its new partnership with Riyadh Air, which is set to launch later in 2025.

Looking ahead, Ahussain is optimistic about the impact of global events, such as Expo 2030 and the 2034 FIFA World Cup, on the Kingdom’s tourism sector. “These projects and events, as we saw with Expo 2020 Dubai, help build a brand for a city or country, and that brand creates awareness,” Ahussain said.

He continued: “When people come, whether domestically or internationally, we are working to build a foundation that supports them throughout their travel — before, during, and after these events.”

Almosafer is also preparing for an initial public offering as part of its long-term strategy, with an IPO date likely in 2025 or 2026, its parent company Seera Group said in November 2023.

“We’re still on track with that plan and working toward it,” he said

With domestic tourism growing rapidly, Almosafer is enhancing its digital offerings through partnerships aimed at streamlining travel services. 

During the forum, Almosafer signed a memorandum of understanding with the Saudi Tourism Authority to integrate digital platforms, enhancing access to travel services. 

Ahussain explained that the partnership also aimed to improve Sara Al, the smart guide for Saudi tourism, by adding booking services for flights and accommodations.

Another agreement was signed by the company with Madinah Region Development Authority to enhance tourism in the province.