Arabian Business, Monday, Apr 27, 2020 | Ramadan 04, 1441
Saudi's tourism industry could take 45% hit due to Covid-19
Saudi Arabia:
Saudi Arabia’s tourism industry could take a hit of up to 45 percent this
year as a result of the coronavirus pandemic.
Just months after the kingdom flung open its doors to the world in launching a
new visa scheme for 49 countries in September last year, the Covid-19 outbreak
slammed the shutters closed, with widespread measures implemented to curb the
spread of the deadly virus.
This included closing its borders to overseas umrah
pilgrims and to tourists from at least 25 countries at the start of March.
While later in the month, all travel in and out of the country was suspended.
The containment measures have dented the kingdom’s plans to diversify its
economy away from oil, and have tourism contribute 10 percent of gross domestic
product by 2030.
“We believe this year the impact will be in the range of 35 percent – 45 percent
decline, compared to last year, depending on how fast we will reopen the country
and receive visitors,” Ahmed al-Khateeb, Minister of Tourism, said in an
interview with news agency Reuters.
“The sector has been severely impacted, hotels globally are suffering today from
very low occupancy ratios, it is the case here in Saudi Arabia as well. We hope
things get better in the next few weeks and we have a fast recovery.”
On Sunday, Saudi Arabia joined nations around the world in gradually loosing
restrictions that were put in place to prevent the spread of coronavirus.
The kingdom partially
lifted a 24-hour curfew in all regions except Makkah and will allow
resumption of some commercial and economic activities.
Some 2.5 million pilgrims usually flock to the kingdom for the week-long haj
ritual, expected to take place in July this year. But Saudi Arabia has urged
Muslims to wait before making plans to attend until there’s more clarity about
the deadly coronavirus pandemic.