Seera Skift Repo

DECODING THE SAUDI
ARABIAN TRAVEL AND

TOURISM INDUSTRY
Understanding inbound, outbound,
and domestic travel trends
Presented by
+
Decoding The Saudi Arabian Travel and Tourism Industry SKIFT + SEERA GROUP 2
TABLE OF CONTENTS
Executive Letter 3
Introduction 5
Travel and Tourism In Saudi Arabia By the Numbers 6
Saudi Arabia’s Goals for Growing Its Tourism Economy 7
Challenges to Overcome 8
The Way Forward 10
Seera Group Appointed as the Destination Management Company Partner for
‘Winter at Tantora’ 15
Saudi Arabian Traveler Behavior and Preferences 16
International Outbound Leisure Travel Preferences and Habits 18
Seera Fulfills its Promise to Invest in Human Capital Development with
Almosafer Academy 23
Domestic Travel Behavior 25
Business Travel Trends 26
Understanding Inbound Travel to Saudi Arabia 28
Hajj and Umrah Travel Segment 31
Conclusion 34
ABOUT SKIFT MASTHEAD
Skift is the largest industry intelligence platform Vice President, SkiftX / Katherine Townsend
providing media, insights, and marketing to key Strategist, SkiftX / Sonali Sen
sectors of travel. Skift deciphers and defines trends
Research Editor, SkiftX / Jeremy Kressmann
for global leaders and executives across travel and
Brand Strategist, SkiftX / Dawn Rzeznikiewicz
wellness sectors through a combination of news,
research, conferences, and marketing services. Project Manager, SkiftX / Gianna Greco
Senior Designer / Andrea Yang-Yanez
ABOUT SKIFTX
SkiftX is Skift’s in-house content studio. SkiftX
produced this report in partnership with Seera Group.
EXECUTIVE LETTER
LET’S TRAVEL FURTHER,
TOGETHER.
The past 40 years have been a remarkable and
memorable journey for our group — a journey that has
lead us to forge new pathways and always challenge
ourselves to go further. Following our transformation
from Al Tayyar Travel Group to Seera, we are driven by
the purpose of opening up opportunities for travel by
connecting cultures.
We now stand on the cusp of a momentous time,

which is leading us and the nation of Saudi Arabia
towards a future brimming with great potential.
With the focus of Saudi Vision 2030 to unlock the
true potential of the Kingdom’s tourism industry
by promoting both inbound and outbound travel Abdullah AlDawood,
services, Saudi Arabia is positioned to be one of the CEO of Seera Group
world’s leading tourism destinations.
We are challenging ourselves to serve as a bridge

between cultures, the common ground that brings We are pleased to publish this report, in partnership
strangers together, to connect and broaden minds with SkiftX, which gives unique and fresh insights into
and to empower people to travel in the Kingdom the travel and tourism sector of Saudi Arabia.
and across the world like never before. This is enabled
by the technology platform we have developed that Join us as we set off on our new journey to open up
helps power our portfolio of brands. In addition, Seera our Kingdom, connect cultures, and inspire travelers
has a central sourcing team and a dedicated data to experience all the possibilities that await.
unit – helping the group to better understand and
serve our customers.
Our strength lies in our experience and the reputation

we have garnered over the years. We pride ourselves in
the fact that we are not only the most knowledgeable
and accomplished travel and tourism company in
the region, but we have the advantage of a diverse
collection of imaginative individuals who operate
under one group brand, whose primary purpose is to
enrich every stay, every journey, every trip.
INTRODUCTION
High-spending, frequently-traveling Saudi Arabians
make the Kingdom of Saudi Arabia one of the most
attractive markets for global travel brands. In April Saudi Arabia
2016, His Royal Highness Crown Prince Mohammad
bin Salman Al Saud of Saudi Arabia, announced
Vision 2030, a manifesto outlining the Kingdom’s Riyadh
plan for social, economic, and cultural development
in the coming years. One of the key tenets of the
Vision 2030 is to achieve economic diversity, and
tourism can be a key facilitator of that tenet. The
Kingdom is taking many steps to grow its tourism
economy - including issuing tourist visas in 2019 for
the first time in decades. Today, Saudi Arabia’s travel
industry is at the cusp of transformation.
This is not the first time a Middle Eastern country has

transformed or attempted to transform its economy
via a comprehensive plan such as this. The United
Arab Emirates (UAE) launched UAE Vision 2021 in
2010, and Bahrain launched its Economic Vision 2030
in 2008.
Total Population:
“There are specific times when destinations accelerate

34,218,169
growth and do something spectacular,” said Ross
McAuley, vice president of marketing for Seera Group.
Saudi Nationals:
“Think about Manhattan in the early 1900s, Berlin’s
transformation in the ’90s, and Dubai’s in the 2000s.
That time is now for Saudi Arabia — to experience and
20.7 million
drive unprecedented economic and social change.
And travel and tourism, to me, is both a key driver and Median Age:
beneficiary of that change.”
This report, created in partnership with Seera Group,

29.9 years
the leading Saudi Arabia-based travel industry
conglomerate, aims to understand the current state Capital:
and future potential of the Saudi Arabian travel
industry and the Saudi traveler.
Riyadh
Source: Saudi Arabia goverment and CNN
TRAVEL AND TOURISM IN SAUDI ARABIA BY THE

NUMBERS
According to data from the World Travel and Tourism Council (WTTC), tourism has been growing in Saudi Arabia
in the last decade, though there has been year-on-year fluctuations. Here are some key findings from evaluating
changes in spend. We looked at “real prices,” which adjusts the actual spend amounts to take inflation or
deflation over time into account.
1. Travel and Tourism’s total contribution to Saudi Arabia’s

Gross Domestic Product (GDP) grew by 4.64 percent Gross Domestic
(which amounts to approximately $2.89 billion) between
+4.64% Product
2009 and 2018 and was at $65.21 billion in 2018.
2. Domestic tourism spending (spending by Saudi Arabia’s

residents on business and leisure trips within the country)
Domestic Tourism
grew by 1.56 percent (which amounts to approximately +1.56%
$262 million) between 2009 and 2018 and was at $17 Spending
billion in 2018.
3. Leisure tourism spending (spending by Saudi Arabia’s

residents and internationals on leisure trips within Leisure
the country) grew by 12.55 percent (which amounts to +12.55%
Tourism Spending
approximately $2.9 billion) between 2009 and 2018 and
was at $26.4 billion in 2018.
4. Business tourism spending (spending on business travel

Business
by residents and international visitors within Saudi Arabia)
+35.8%
grew by 35.8 percent (which amounts to approximately Tourism Spending
$1.2 billion) between 2009 and 2018 and was at $4.5
billion in 2018.
5. Visitor exports or foreign spending (spending by

Visitor or Foregin
international tourists in Saudi Arabia) grew by 38.4 percent +38.4%
(which amounts to approximately $3.8 billion) between Spending
2009 and 2018 and was at $14.04 billion in 2018.
To provide some additional context from WTTC, no other country except the UAE is attracting the same level of
spending in that region. Foreign spending was at $0.75 billion in Kuwait, $3.1 billion in Oman, and $12.96 billion
in Qatar in 2018. WTTC also reports that domestic tourism spending in 2018 was at $5.39 billion in Kuwait, $2.38
billion in Oman, and $2.42 billion in Qatar. “The outbound travel market from Saudi Arabia has always been
lucrative, but we are seeing growth in domestic and inbound travel as well,” McAuley said.
SAUDI ARABIA’S GOALS FOR GROWING ITS

TOURISM ECONOMY
Vision 2030 impacts the Saudi Arabian tourism and 7. Improve visa issuance procedures for visitors.
travel industry in several direct and indirect ways.
Saudi Arabia has also set forth tourism goals outside 8. Move from its current position as the 19th largest
of the Vision 2030 manifesto. Some of the goals economy in the world into the top 15.
outlined in Vision 2030 and by the Saudi Commission
for Tourism & National Heritage that can potentially 9. Increase foreign direct investment from 3.8
drive growth in travel and tourism are: percent to 5.7 percent of GDP.
1. Increase Saudi Arabia’s capacity to welcome 10. Increase non-oil government revenue from $43.45
Umrah visitors from 8 million in 2015 to 30 billion to $266.6 billion.
million every year by 2030. Umrah is a year-round
pilgrimage made by Muslim travelers to the holy While the first seven goals above have a direct impact
cities of Makkah and Madinah. on growing travel and tourism in the country, the
other goals impact the industry a little more subtly.
2. More than double the number of Saudi heritage An increase in opportunities for companies outside
sites registered with the United Nations of Saudi Arabia to invest directly in the country
Educational, Scientific, and Cultural Organization could grow inbound international business travel,
(UNESCO); Saudi Arabia currently has four cultural for example. Investment in infrastructure would also
sites registered with UNESCO. make it easier for visitors to travel within the Kingdom.
3. Build the largest Islamic museum in the world As part of executing on the promises of Vision
with a library and research center. 2030, the Saudi Arabian General Investment
Authority (SAGIA) and the Saudi Commission for
4. Increase household spending on cultural and Tourism and National Heritage (SCTH) have signed
entertainment activities inside the Kingdom from several memoranda of understandings (MoUs) and
the current level of 2.9 percent to six percent. agreements with regional and international investors
for around $26.67 billion. Out of that, Seera Group has
5. Achieve 100 million international and domestic committed to investing SAR 1 billion in improving
overnight visits a year by 2030. Saudi’s tourism and human capital infrastructure and
promoting Saudi Arabia as a destination around the
6. Increase tourism’s contribution to the country’s world.
GDP by 10 percent by 2030.
Riyadh, Saudi Arabia
CHALLENGES TO OVERCOME
Madai’n Saleh, Saudi Arabia
Like any other nation looking to pave a new path, However, hospitality professionals inside Saudi
Saudi Arabia has several challenges to overcome. Arabia are confident about the positive impact of
Depending on which sector you look at within the the changes that have been implemented in the last
travel industry, there are nuances to these challenges. few years and the additional changes that have been
However, for the purpose of this report, we have announced. “There is a lot of buzz about Saudi Arabia
bucketed these challenges under two main themes: around relaxing some of its rules and restrictions,
perception and infrastructure. and living here, we can see things changing to open
the country for more tourism,” said Kamran Khan,
Perception: Saudi Arabia’s perception in the global managing director at AIM Restaurant Consultancy
community has many geopolitical and social and Marketing. “A lot has actually been done in recent
associations. Whether in reference to concerns raised times that shows the leadership’s commitment to
by the United Nations and international media about growing the travel and tourism economy in Saudi
human rights violations, women’s rights restrictions, Arabia.”
or the nation’s general intolerance of anything that
does not align with its “value system,” Saudi Arabia In the last few years, the government of Saudi Arabia
has a lot to counter. has curbed the powers of the religious police in the
country, allowed women to drive for the first time
in decades, relaxed male guardianship laws to allow
women to travel without a male’s permission, allowed diversification and a better tourism infrastructure in
women spectators in sports stadiums, announced the short and long term.
that unmarried couples visiting the Kingdom can now
rent rooms, made wearing abaya optional, and eased But investment in infrastructure in Saudi Arabia must
up segregation laws around special events. Saudi go beyond the nation’s physical infrastructure to
Arabia also hired New York-based public relations include human capital as well. In October 2019, the
and communications firm Karv Communications in United Nations World Trade Organization (UNWTO)
February 2019 to help rebuild its image on the world Academy was inaugurated in Riyadh to introduce
stage. participants of this 4-day course to the latest trends
in cultural and heritage tourism. “Investment in
Infrastructure: While main population hubs such as human resources for the travel and tourism industry
Jeddah, Riyadh, and Dammam in Saudi Arabia are in Saudi Arabia must expand to not just have more
well-connected, and infrastructure improvements trained people but to also have people with diverse
continue in the holy cities of Makkah and Madinah, skills,” McAuley said. “Saudi Arabia currently has more
other parts of Saudi Arabia do not have the necessary ticketing agents than travel advisors and making sure
infrastructure to support tourists. that more Saudis are trained for jobs in hospitality,
travel, and tourism is a good thing.”
“One of the largest barriers to [growing travel and
tourism] is that infrastructure on the ground is Qiddiya, an entertainment, sports, and cultural
completely new and limited,” according to Oliver destination, is being built 40 kilometers outside
Martin, partner at Twenty31 Consulting Inc., a Riyadh. Saudi Arabia General Entertainment
destination development and sustainability strategist. Authority (GEA) and Qiddiya Investment Company
The average Saudi likely only speaks Arabic, and (QIC) instituted a scholarship program in early July
communicating effectively with international 2019 to provide scholarships for 60 students from
consumers can become a bit of a challenge as Saudi Saudi Arabia to study at Rosen College of Hospitality
looks to attract more non-religious travelers.” Management at the University of Central Florida in
the United States. A memorandum of understanding
As outlined in the Vision 2030 document, the promise was also signed to include internships at Six Flags
of increasing investment to improve infrastructure in theme park for these students, paving the way for
the cities, cultivate historic sites, and open up the them to get jobs at Qiddiya.
nation to foreign direct investment could stimulate
Red Sea, Saudi Arabia
THE WAY FORWARD

While those challenges are hurdles for the Saudi Aside from investments and legal changes necessary
Arabian government to overcome, officials from Seera to transform Saudi Arabia, the statement that
Group are extremely positive about future prospects. has perhaps inspired the most confidence in the
“Like for the United Arab Emirates in the early 2000s, country’s future as a tourist destination was Prince
this is Saudi Arabia’s starting point,” McAuley said. “If Mohammed’s statement that Saudi Arabia would
you think about Dubai, look at the photos from the return to a more “moderate Islam.” During a public
late ’90s — it did not exist in the form it does today. appearance at an investor conference in Riyadh, the
Even Singapore has transformed immensely. There prince said, “We only want to go back to what we
is a track record of such transformations from other were: moderate Islam that is open to the world, open
nations — embracing change, modernizing, and to all religions. We will not waste 30 years of our lives
opening up the market — that do defy expectations, in dealing with extremist ideas. We will destroy them
and Saudi Arabia is on a similar path.” today.”
As Saudi Arabia turns to travel and tourism, the Research done by Colliers on behalf of the Arab Travel
government’s approach has been to set up individual Market, a travel and tourism event held every year in
strategic units to advance different parts of the Vision the Middle East, projected domestic trips to increase
2030 plan. “If you’re moving at the speed that the by eight percent in 2019 and inbound visits from
Saudi government wants to move at, you have to drive international markets to grow by 5.6 percent per year.
this from and into the upper layers of the government “Domestic tourism across Saudi Arabia has witnessed
to make sure that things happen quickly,” McAuley a significant increase over the past year, presenting
added. “So the strategy is set up to have the Public enhanced business opportunities for the hospitality
Investment Fund (PIF) and top government officials industry,” said Pascal Gauvin, managing director for
heavily involved and to develop entities whose sole India, Middle East & Africa at InterContinental Hotels
task is to deliver on the promise and metrics of Vision Group (IHG). “We predict that this trend will continue
2030.” The PIF is a sovereign wealth fund owned by for many years. This surge has also resulted in a gap
the government of Saudi Arabia. between the demand for, and supply of,quality,
internationally branded accommodations targeting
The country is also making headway in offering diverse specific guest segments.” IHG currently has 14 new
payment methods to travelers. Secure contactless properties being developed and is debuting one new
and cashless payment methods are prerequisites brand, voco, in Saudi Arabia.
to sustain the growing number of online travel
transactions, and to make it easier for international However, the international community of travelers
inbound and domestic travelers. Visa has partnered and investors remains cautiously optimistic and
with mada, the Saudi payment network, to launch would need better knowledge of local norms, culture,
its first digital wallet, mada Pay, which uses Visa’s and practices to conduct business in Saudi Arabia.
tokenization technology to secure transactions by While the laws institutionalize some of the changes
replacing the 16-digit card number with a token. the Crown Prince wants to bring about, the realities
During a transaction, the token – not the actual card on the ground will take longer to change.
information - is selected and submitted into the
payment process.
Saudi Opens Up Its Borders U.S.A Iceland

Canada Latvia
for Tourists with Simplified
Kazakhstan Luxembourg
Visa Processes Singapore Montenegro
Perhaps the most significant move to open up Saudi South Korea Portugal
Arabia to tourists and execute on promises made in Belgium San Marino
Vision 2030, the Saudi Commission for Tourism and
Cyprus New Zealand
Heritage’s announced that anyone seeking to travel
to Saudi Arabia can now apply for a tourist visa online Estonia Spain
or via a Saudi Consulate or Embassy in September, Germany Austria
2019. Before this, travelers could visit Saudi Arabia
Italy Croatia
only under the following umbrellas - Hajj and Umrah
travel, business travel, or to visit family and friends. Lithuania Denmark
Monaco France
Citizens from Bahrain, Kuwait, Oman, and United
Poland Holland
Arab Emirates do not need a visa to travel. But with
e-visas and visa on arrival available to citizens of 49 Russia Ireland
countries, traveling to the Kingdom as a tourist just Slovenia Liechtenstein
became easier.
Switzerland Malta
The strategy for targeting tourists and travelers is to Australia Norway

entice first-time visitors to “discover Saudi” from 2019 Bulgaria Romania
to 2022. The extension of that strategy from 2022
Czech Republic Slovakia
would be to encourage tourists to “experience Saudi”.
Finland Sweden
Greece Ukraine
China (Hong Kong, Mcau, Taiwan)
AlUla Landscape, Saudi Arabia

and across the world. “The demand for luxury travel

Existing and Upcoming is growing rapidly, but what makes this project so
Projects to Improve the special and unique is that it has sustainability at its
heart, giving visitors the satisfaction of knowing that
Tourism Infrastructure they can take advantage of a luxury experience while
preserving the natural beauty of the local area for
Seera Group’s hospitality division currently has 1,880 future generations,” said John Pagano, CEO at The
hotel rooms, and they plan to expand to 6,000 rooms Red Sea Development Company.
by 2022. Seera Group has largely mid-market hotels
in its portfolio, though two of its properties are luxury Other ongoing national projects, most of which are
properties. Its intention is to continue to build hotels being fully or partially funded by the PIF include:
that cater to the demands of domestic travelers,
business travelers, and pilgrims traveling to or within • Neom Valley Project to build a megacity in the
the country. It has partnered with Choice Hotels, desert by a water body.
and is currently developing seven hotels in Riyadh,
Jeddah, and Al-Taif. • Qiddiya, an entertainment center, which will
include a Six Flags branded theme park and hotels.
One of the largest tourism undertakings is happening
in the Red Sea, where a new project development • Amaala, a wellness-focused resort with a
spans 90 untouched islands and 28,000 square dedicated airport, 2,500 luxury hotel rooms, 200
kilometers of land and sea. The project is tapping retail establishments, art galleries, marinas, and
into the undiscovered natural beauty of the region, 700 villas.
and targets visitors from both within the Kingdom
Jeddah beachresort, Saudi Arabia

• Sharaan resort in AlUla, which will be designed • Jeddah Tower and Jabal Omar, both of which are
by Jean Nouvel, who designed the Louvre Abu expected to include hospitality units.
Dhabi, and will include luxury suites, a wellness
spa, and an events venue. Another massive undertaking in Saudi Arabia is the
plan for Aman Resorts to open three properties near
• A third expansion of the Makkah Grand Mosque AlUla. “True to the pioneering spirit of Aman, the
is underway to accommodate more Hajj and three resorts will offer an incomparable insight into
Umrah travelers. the Kingdom of Saudi Arabia and its magnificent
unspoiled natural landscapes and archaeological
• Saudi Entertainment Ventures (SEVEN) recently sites, which have long remained undiscovered,” the
announced plans to open 50 new cinemas with hotel group said in a statement to Travel + Leisure.
a total of 450 screens by 2022. It plans to open
seven cinemas in 2019 alone. It also announced
plans to build 20 entertainment centers.
Rijal Alma, Saudi Arabia Jeddah City View and Beaches, Saudi Arabia
Abha Mountains Cable Cars,

Saudi Arabia
Using Entertainment and

Cultural Activities to Increase The Saudi Seasons facilitated an increase in inbound
and domestic travel. The Taif Season, for example,
Domestic and Inbound Travel saw more than 2.5 million visitors from within the
Kingdom and abroad.
Another initiative as part of Vision 2030 is the
establishment of the General Entertainment One of the major events on the Saudi Arabian tourism
Authority (GEA), which helps organize and develop calendar for 2019–2020 is Winter at Tantora, Season
the entertainment sector to provide more activities Two, with events scheduled from December 19, 2019,
for domestic and international travelers. to March 7, 2020. During Season One in 2018, the
festival welcomed 37,000 visitors over a period of
The Saudi Seasons were established as part of this ten weeks. Season Two offers a 500-seat concert hall,
effort and involve a calendar of events, including luxury villas, ballet shows, opera, orchestra, a two-
concerts, local engagements, cultural and religious week balloon festival, and the world’s second largest
events, circuses, theatrical performances, and more endurance race. This season will last 12 weeks. Visitors
over a period of time in popular destinations. For can explore the region of AlUla with activities such as
example, the Jeddah Season, hosted in June and hiking, volcano treks, airship flight tours, vintage tours,
July 2019, included a performance of King Lear, a and Red Sea discovery tours. Pop-up luxury resorts
number of circuses, and a music festival featuring with expansive villas are currently under construction,
international performers such as Janet Jackson, and the visa application process surrounding the
Future, 50 Cent, Chris Brown, and Tyga. Men and event has been simplified. The event is expected to
women were not segregated in the festival venue, have 10,000 weekend guests (who spend the night
another first for the Kingdom. there) and 30,000 guests to public events.
Jeddah Football Stadium, Saudi Arabia Cultural Evening with Traditional Food in the
Desert, Saudi Arabia
Night in the City, Jeddah, Saudi Arabia

25/10/2019 FRIDAY October
SAUDI ARABIA NEWS

SEERA GROUP APPOINTED AS THE
DESTINATION MANAGEMEN COMPANY
PARTNER FOR ‘WINTER AT TANTORA’
The Royal Commission for AlUla announced
that Seera Group has been appointed as the key
Destination Management Company (DMC) for the
event. Seera Group, with its many business units, will Choosing Seera as a DMC for the
be responsible for creating and marketing various event underlines our competencies
travel products that will help visitors to the festival in offering tailored solutions for
have everything taken care of — from ticketing to international and Saudi-based
on-site experiences. It will also be responsible for visitors – covering all aspects of their
driving awareness for the event. journey. In addition to working with
our global offices and affiliates,
“Choosing Seera as a DMC for the event underlines we will promote and sell travel
our competencies in offering tailored solutions for packages for the festival across
international and Saudi-based visitors – covering all Seera’s extensive online and offline
aspects of their journey,” said Abdullah AlDawood, network.
CEO of Seera Group. “In addition to working with
Abdullah AlDawood,
our global offices and affiliates, we will promote
CEO of Seera Group
and sell travel packages for the festival across
Seera’s extensive online and offline network.”
www.seera.sa
SAUDI ARABIAN TRAVELER BEHAVIOR AND

PREFERENCES
Most Saudi Arabians take multiple trips a year. “Due ranks the highest when it comes to unaided recall
to the way holidays are structured in the country, of travel brands as of August 2019. “The one thing
most of them not only get to take at least one long we’ve recognized about our Saudi customers is that
annual leave but also several short trips during they really love and remain fiercely loyal to a local
weekends or religious holidays,” said Fahad Al brand like Almosafer or Saudia. There is an emphatic
Obailan, vice president of retail at Seera’s consumer preference for brands made for Saudis by Saudis,”
travel business unit. Obailan said.
Based on monthly surveys conducted by Seera

Group of 300 residents of Saudi Arabia, Almosafer
(Seera Group’s flagship consumer travel brand)
The Four Segments of Saudi Arabian Leisure Travelers

Under the larger umbrella of its Consumer Travel Business Unit, Seera Group conducted extensive research that
included field surveys, observation of the Almosafer call center and store employees, focus groups, a consumer
panel, observation of the booking process, and more. At the end of this research, Seera classified Saudi travelers
into four primary segments:
• Family Travelers: Saudi Arabians like to take at least one trip every year as a family,
if not more. Often, family travel includes not only one’s nuclear family but is rather
more multi-generational, including grandparents, cousins, and siblings. Though
bookings are often made for each of these family units separately, they all meet at
the destination and stay together. Having a common area to socialize, spend time
together, and host friends and family is an important consideration. The presence
of adjoining rooms and/or connected suites often becomes a deciding factor in
what kind of accommodations these travelers book. They also want to have easy
access to different activities for different generations based on their interests, as
well as lots of activities for the children.
• Take-it-Easy Travelers: This segment of travelers is younger, and though they are
more likely to visit a new destination than the family travel group, they are still
largely looking for a place where they can go to relax and be comfortable. Beach
resorts, for example, are very popular with this segment.
• Grown-up Explorers: Similar to the previous segment, these groups are young, but
they differ in what they want to get out of their trip. They are looking for adventure,
an experience they’ve never had before, something different, and something
unique.
• Honeymooners: Honeymooners in Saudi Arabia present a specialized kind of

need because often this is the first time the couple is traveling together. There is a
lot of trepidation involved, and the need for reassurance, security, and comfort is
extremely high among this group. They want to know that everything will be taken
care of and arranged before they arrive
“With the change in the law in August 2019 that now allows
women to travel without being accompanied by a male
relative and to get travel documents such as passports
without permission from a male guardian, women
traveling in groups and by themselves is also expected to
rise,” said Fatimah AlJarboua, communication specialist
at Seera Group “This is sure to open up a new segment of
travelers that Saudi and international travel brands can
look to attract.”
INTERNATIONAL OUTBOUND LEISURE TRAVEL

PREFERENCES AND HABITS
Saudi Arabian travelers, just like most travelers around “Like the rest of the world, people from the Middle
the world, are inspired by trends, but the key drivers East love to travel, and that holds especially true for
for most of their travel-related choices are safety and people from Saudi Arabia,” said Ronnie Varghese,
cultural alignment. The current median age in Saudi senior director of online and omnichannel programs
Arabia is approximately 29.9 years, and wanderlust for for Seera Group’s consumer travel business unit. “But,
new experiences and a desire to explore are strong. what is unique about Saudi leisure travelers is that
they travel much more frequently and spend more
per trip by a significant margin.”
Top Travel Priorities
Varghese’s insight is supported by the findings of
the Middle East Consumer Travel Report published
in March 2018 by Amadeus, tajawal (part of Seera
Safety
Group), and Jumeirah. This research looks at travelers
from Egypt and the Gulf Cooperation Council (GCC)
countries, a regional intergovernmental political and
Access to prayer rooms
economic union comprising Saudi Arabia, Kuwait,
and/or mosques
the United Arab Emirates, Qatar, Bahrain, and Oman.
According to the report, 31 percent of respondents
travel at least once a year, 25 percent travel twice a
Comfortably adhere to
year, and 44 percent of respondents travel three times
their cultural norms
or more in a year.
Access to halal food Saudi Arabians Travel Frequently for Leisure.
New experiences
31%
Travel at least
once a year
44%
Travel three
times or more
in a year
25%
Travel twice in a year
Source: Consumer Travel Report, Amadeus, tajawal, and

Jumeirah, March 2018.
destination for Saudi Arabians to visit. According to

Selecting a Destination numbers reported by Visit Britain in 2018, Saudis
made 166,250 visits to the UK, with an average stay of
“The state of leisure travel in Saudi Arabia is actually 16.29 nights and an average spend of $3,109 per stay.
very exciting,” said Muzzammil Ahussain, executive
vice president of consumer travel for Seera Group. “The most important things to a Saudi traveler are
“And that’s mainly because of two things. First, just trust, safety, and security,” Ahussain said. “And we
like the rest of the world, people are exploring more attempt to ensure that we provide as much of that as
and more. They are trying new destinations like Baku, possible. We have direct contracts with some hotels
Tbilisi, Kuala Lumpur, and Dubrovnik. And the second and hotel chains such as Marriott, IHG, and Accor,
thing is that cities Saudis commonly frequent, like
London and Dubai, continue to remain strong as
people enjoy the comfort and familiarity these places
provide. They enjoy these trips, and they keep going All-Time Favorites:
back.” London, Dubai, Paris, Cairo, Sharm El-Sheikh,
Maldives, Beirut, Abu Dhabi, Bali, and Geneva
Countries such as South Africa are also recognizing
the value of the Saudi traveler. As of August 2019, Currently Trending:
Saudi Arabians and UAE nationals no longer need Baku, Tbilisi, Kuala Lumpur, Dubrovnik,
a visa to travel to South Africa for 90 days or less for Jakarta, Seychelles, and Singapore
leisure or business. Georgia made a similar move in
November 2016. The United Kingdom remains a top
Dubrovnik, Croatia
and we work with Global Distribution Systems (GDSs) members and friends. Being extremely family and
to make sure that we are able to provide as many community oriented, this kind of trip makes up a
options and as much information as possible to the large portion of the bookings we see. And when they
booker via our platforms.” travel, they are not only looking to spend time with
their family and friends but also to host family and
It is also this search for trust, safety, and security that friends as they would at home,” Varghese said.
makes domestic travel, travel to destinations within
the GCC, and repeat visits to familiar places outside Beach holidays are popular among Saudi Arabians,
of the GCC very appealing to Saudi travelers. “When it and Maldives and Mauritius are very popular. While
comes to the kind of destinations travelers select, it is Maldives offers the familiarity of being in an Islamic
very cyclical,” said Rob Arrow, product development country, Mauritius offers private beach experiences.
director at Seera Group. “When they are young and “Saudi Arabian travelers are still fairly conservative,
they travel as part of a larger family, they visit the and they want privacy to be able to truly enjoy the
familiar spots. They grow up, they begin to travel with destination without compromising their cultural
friends, and they are looking for adventure. They seek and religious preferences. Villas in beach resorts with
out new and exciting places to go to. After that, they private pools and exclusive beach access offer exactly
settle down, get married, have kids, and it’s back to what many families are looking for,” Arrow noted.
the familiar places for them.”
Almosafer data also shows Azerbaijan to be one of the
The kind of accommodation Saudi travelers will have rising stars on the top destination list. “It ultimately
access to at their destination also often plays into the comes down to their willingness to explore. Places
selection process. According tothe Ipsos, Spotlight that seemed alien before — as long as they have a
KSA: Saudi Arabia Travelers Report, published unique experience or a beautiful beach to offer —
in November 2018, 69 percent prefer alternate don’t seem as alien to this new generation of Saudi
accommodations such as apartments and home travelers anymore,” Arrow said.
rentals over hotels. “Saudi Arabians, often when
traveling as a family, plan visits with other family
Tower Bridge, London, United Kingdom
Most Popular Sources of

Influencing the Decision Travel Information
Makers
Initial research done by Seera Group showed that men
were making most of the travel bookings. However,
on further evaluation of the user experience and
the user journey, Seera Group found that the actual
decisions were being made by the women while men 44% Friends and Family
were doing the final booking and providing the final
validation.
When it comes to finding inspiration on where to

travel, Saudi Arabians rely on three sources: friends
and family, social media, and pop culture. While
analyzing user behavior by traveler segments Seera
Group discovered that when choosing to travel to a 39% Travel Websites
place for the first time, or when the recommendation
was not made by a family or a friend, bookers will
often look for online reviews left by other Saudis to
help make up their mind. While 44 percent look to
family and friends for travel information, 39 percent
visit travel websites to find what’s new, according to
the Middle East Consumer Travel Report 2018.
25% Travel Providers on Social Media
To cater to a new generation of Saudi travelers
who want to visit new places, Almosafer has
begun partnering with the tourism boards of the
United Kingdom, Azerbaijan, Singapore, and other
destinations to create written and/or video content
about the destination to address the key things Saudi
Arabians take into consideration while traveling.
“What we’ve done in Indonesia, for example, is that
16% Vloggers and Bloggers
we sent our film team to highlight a lot of unknown
things about the destination,” Ahussain said.
Outside social media, popular TV shows and movies
The younger generation, especially friends traveling are also influencing destination choices for couples
in a group, looks to social media influencers and and friends traveling internationally. Croatia became
YouTube vloggers. “They look at what’s trending on popular after the television show Game of Thrones
Instagram, Snapchat, and even YouTube to find their was filmed there, Northern Ireland after Star Wars,
inspiration,” Arrow said. Almosafer data also shows New Zealand after Lord of the Rings, and so on. “Seera
that cherry blossom festivals in Japan and Korea are Group got customer feedback about creating and
becoming more popular among younger travelers. providing tours to popular destinations where local
Arabic TV shows were shot as well,” Arrow said.
61%
Saudi Arabians prefer to make
reservations and travel bookings
through a travel agent
Source: Ipsos
Saudi traveler and developed a more omnichannel

Booking Behavior approach — call centers, online, and retail outlets.
The Ipsos report found that 61 percent of Saudi Recognizing that there were parts of the trip Almosafer
Arabians prefer to make their reservations and travel was losing out on helping the customer with was
plans with a travel agent, and 75 percent of them a huge first step in its new omnichannel strategy.
like to book individual pieces of the trip separately Currently, Almosafer has four stores across Jeddah
instead of buying a package. However, online booking and Riyadh, but by the first quarter of 2020, it plans to
is definitely on the rise. Seera Group’s online travel open 50 stores around the country, with 25 expected
agencies, Almosafer and tajawal, bear testimony to open by the end of 2019. When a customer reaches
to that. According to earnings data released in the out, either via a retail store, call centre, website, or any
second quarter of 2019, online consumer business combination of those channels, Almosafer is able to
grew by 70 percent over the last year. build a 360-degree view of the customer, recognize
the customer, and offer a personalized experience
On average, Saudi travelers book their international across all touchpoints.
trips 26 days in advance, according to 2018 (January
to August) data from Seera Group. During the same The decision of which avenue to use when making the
time period in 2019, 77 percent of international booking often comes down to three things: accurate
bookings were made in the window of 0 to 25 days. and relevant content, local payment methods,
and translation to Arabic. “Many Saudi Arabians
As Almosafer grew, Seera research teams found still use bank transfer or mada, the fastest growing
that Saudi Arabians are comfortable buying only debit payment network in Saudi Arabia, for larger
commoditized travel products online, such as a basic purchases, and knowing if their hotel will accept their
flight or hotel booking. However, when it comes to preferred method of payment or not is important,”
more complex bookings, such as trips with multiple Varghese said.
stops, multi-family vacations, or holidays to new
destinations, they need additional reassurances
and prefer to go to a travel agent. As a result, Seera
transformed Almosafer’s approach to reaching the
25/10/2019 FRIDAY October
SAUDI ARABIA NEWS

SEERA FULFILLS ITS PROMISE TO INVEST
IN HUMAN CAPITAL DEVELOPMENT
WITH ALMOSAFER ACADEMY
“Almosafer Academy is an integral part of our retail
transformation as we are immersing Saudi talent in
intensive and specialized training that will give them
the knowledge and skills to help customers make the
right travel decisions,” Obailan said. “It is no longer
simply about the booking but providing customers
with the insight and inspirati on to make the first part
of the travel journey as exciting as the rest.”
Adding to Seera’s efforts to be more omnichannel As part of a 10-week training program, students of
and to provide Saudi Arabian travelers with the the Almosafer Academy will visit top destinations
kind of travel information they seek, Seera Group for Saudi Arabians and participate in a dedicated
launched Almosafer Academy in September 2019. destination training session delivered by Tourism
The goal of this academy is to replace ticketing Boards and travel specialists from Visit Britain, Dubai
agents with trained travel advisers who are able to Tourism, Mauritius Tourism Promotion Authority,
give travelers the kind of assurance they want and Azerbaijan Tourism Board, Bahrain Tourism and
need when they travel outside of Saudi Arabia. Exhibitions Authority, and Experience Hub, the trade
and promotion arm of Yas Island Abu Dhabi.
www.seera.sa
Spending Habits
According to the Ipsos Report, 56 percent of HO TEL
respondents said they splurge on a trip, while 44

percent said they travel on a budget. Seera Group’s BO OK NOW
internal data largely supports that finding.
YOUR TEXT HERE

When it comes to overarching travel spend habits, TERMINAL
00:00
DEPATURE
21:7 070 31
TERMINAL ZONE DESTIN
ATION
NEWY ORK
Seera Group’s year-to-date (January to August

2019) data reveals that over 80 percent of Saudi Saudi Arabians booked four- or
Arabians prefer to travel via full-service airline carriers
regardless of whether they are traveling domestically
86% five-star accommodations for their
international travels.
or internationally. A whopping 86 percent of Saudi

Arabians book four- or five-star properties for their
international travels. “Our data shows that the average
spend on a four- or five star-hotel per night is $180
during international travel, but 67 percent of Saudi
Arabian travelers are actually spending above that
average amount,” said Louise Blake, vice president of
data for Seera Group. Seera Group’s data also reveals
that over 45 percent of international travelers take
trips of nine days or more.
45%
international travelers take trips of
nine days or more
“While often many trips start off with a budget in
mind, because they don’t yet know where they want
to go, once they settle on a place, you will see that Source: Seera Group
they spend a lot more than other nationalities on the

actual experience,” Arrow said. “Overall, they are value
shoppers. They want to make sure that they are not
being fooled and are getting [a product] worth their
expenditure. But for the right kind of experience, if it
is unique enough, if it is different enough, they will Our data shows that the average
pay over the odds to access that experience.” spend on a four- or five star-
hotel per night is $180 during
international travel, but 67 percent
of Saudi Arabian travelers are
actually spending above that
average amount.
Louise Blake
Vice President of Data, Seera Group
DOMESTIC TRAVEL BEHAVIOR

Domestic travel is on the rise in Saudi Arabia. On average, Saudi travelers book their domestic trips
“Thanks to the various investments in Saudi Arabia’s 12 days in advance, according to 2018 (January to
infrastructure, there are new destinations within Saudi August) data from Seera Group. During the same time
Arabia,” Ahussain added. “They are not just traveling period in 2019, the booking window for domestic trips
within the Kingdom to visit family and friends but to dropped to just nine days.
explore new destinations and experience new things.”
The primary purposes for domestic travel are to visit
According to Seera Group data, 79 percent of family and friends, for pilgrim trips, and for business.
accommodations are booked at four- or five-star However, with places to visit and experiences in
properties when Saudi Arabians travel within their Saudi Arabia that are similar to the international
country. The data also reveals that over 41 percent of destinations they visit, things are expected to change.
domestic travelers take trips of three days or more.
AlUla, Saudi Arabia

BUSINESS TRAVEL TRENDS
The outbound business travel market in Saudi Arabia seven days or fewer before the trip,” Blake said. Most
is smaller than the outbound leisure travel market, but business travelers travel domestically (72.73 percent),
there is year-on-year growth in this space. According with about 3.5 percent traveling to Africa. Outside of
to reports from Elaa, Seera Group’s corporate and the GCC countries, Egypt, India, and Sudan are the
government travel unit, the number of business travel most popular business travel destinations. Business
transactions between January and August grew by travel frequently happens in groups, with the average
38 percent, from 684,657 in 2018 to 1,107,921 in 2019. group size for bookings on Elaa being above three.
Elaa has 25 percent of the corporate and government The most frequently booked add-ons with these
business travel sector in Saudi Arabia. business trips are tours and rental cars.
“A whopping 90 percent of that travel volume on Just like in leisure travel, the digital-first approach is
Elaa is accounted for by government-related travel, taking over business travel as well. Announcing the
and almost 50 percent of business trips are booked launch of Rehlati by Elaa, an electronic travel order
platform, Abdulrahman Mutrib, chief technology

officer at Seera Group said: “We are a digital-first Year-on-Year growth for the number of
company, committed to enhancing the standards transactions between January and August
of customer service and to bringing the latest
technological know-how to the travel industry. As
Saudi Arabia’s and the region’s leading corporate +38%
and government travel management provider, Elaa
2018 2019
is continuously investing in advanced technology
to seamlessly deliver the travel requirements of our 684,657 1,107,921
clients.”
Rehlati is already serving more than 300,000

government employees and offers automated Destinations for Business Travel
approvals within their booking platform. Any new
rules are immediately incorporated into the system, Within Saudi Arabia: 72.73%
and booking details are stored for easy analysis and
tracking by the employer.
Africa: 3.56%
Other GCC Countries: 2.23%
With the government’s Vision 2030 plan opening
up the market to create special economic zones Rest of Middle East: 7.72%
and increase private industry investment, more
Other Asian Countries: 10.39%
international business collaboration can be expected,
resulting in more growth within this segment. Europe: 2.13%
Business travelers, according to Elaa’s data, are
heavier spenders than leisure travelers and spend USA: 1.1%
almost double the average amount per night.
UNDERSTANDING Top Source Markets for Inbound Travel

in the Future
INBOUND TRAVEL TO Other GCC Countries and Expats Living in GCC

Countries
SAUDI ARABIA Kuwait
United Arab Emirates

The Saudi Arabian inbound economy is currently
heavily dependent on Hajj and Umrah pilgrims.
However, investments by the Saudi Arabian Bahrain
government through the PIF demonstrate a desire to
diversify inbound travel into Saudi Arabia beyond such
Oman
trips. Developments at the Red Sea, AlUla, and Neom
appear to focus largely on growing international
inbound and luxury travelers. This diversification is
also one of the key areas of focus in Vision 2030.
Fast Growing Asian Economies with Large
Islamic Populations
Speaking about the Red Sea development, “The
destination is within eight hours of flying time from
Indonesia
85 percent of the world, so we expect visitors from
around the world to visit,” Pagano said. “The GCC
countries are important source markets, as are fast- Malaysia
growing Asian economies. Western Europe is the
world’s largest outbound market for luxury tourism,
Pakistan
and we also hope to attract visitors from that region.
However, we hope our offer will appeal not only
to the GCC and Western Europe but to discerning India
international travelers of diverse nationalities, faiths,
and cultures.” Alongside an extremely luxurious
experience, the project aims to offer activities such
as hiking through rugged mountains, kayaking or High Net-Worth Individuals and Expat Saudi
snorkeling over protected coral reefs, and taking in Arabians Settled in Western Europe and North
America
the sight of dormant volcanoes.
U.S.A
Martin, of Twenty31 Consulting Inc., notes that given
the challenges Saudi Arabia is currently trying to
overcome, growing the domestic travel market will U.K
be the most lucrative for the Kingdom right now. He
also identifies a few other travel segments that will be
Germany
extremely lucrative for Saudi Arabia in both the short
term and the long term.
France
“The most lucrative target markets for Saudi Arabia

right now are higher net worth, educated individuals

who have traveled a lot, seen other parts of the
world, and are now looking for an experience that
will stand out,” Martin said. “They have been to
Jordan, they have seen Abu Dhabi, and they are now
looking for something else — something they can’t
find elsewhere. And they find the chance of going
to a UNESCO World Heritage site in AlUla or to see
unspoiled nature in the Red Sea region very enticing.”
In terms of countries to target to increase inbound in

the future, “GCC nationals who are familiar with the
Arabian culture, political structures, and customs, etc.
because they have the same in their home countries
would be primary targets.” Martin said.
There is a lot of potential for increasing inbound from

fast-growing Asian economies with a majority or large
Muslim populations. India is an especially lucrative
source market. As of 2018, there were 1.54 million
Indians in Saudi Arabia — visiting friends and family
can contribute significantly to growing inbound
tourism. From Riyadh to Mumbai, there are typically
more than two flights a day, and it takes only 4 hours
and 10 minutes.
As for the other countries with large Muslim

Lahore, Pakistan
populations such as Malaysia and Indonesia, “Their
outbound travel market sizes are small, but there’s During the September 2019 announcement of
a natural understanding that they’ll get halal food, offering tourist visas and evisas, His Excellency Ahmad
there’s not going to be alcohol served,” Martin said. Al-Khateeb, chairman of the Saudi Commission for
“They have some interest in doing an extension of a Tourism and Heritage, also announced that while
religious trip. Or they have already undertaken Hajj women visiting Saudi Arabia will not require to wear
and/or Umrah and are looking for a leisure vacation, abayas, they will be expected to dress “modestly.”
so there’s a possibility that they are a viable option as
well.” Travel brands looking to target international inbound
have their work cut out for them. They must find
Arrow noted that enticing Hajj and Umrah travelers a way to balance the needs and expectations of
to extend their trips is perhaps one of the most international travelers with local cultural restrictions
viable strategies to grow inbound and spread the and norms. IHG opened its first hotel in the country
word about Saudi Arabia’s travel offerings. “One very in 1975, but at the same time, with 5,700 hotels
fortunate thing is that Makkah and Madinah are in around the world, they are keenly aware of what its
very close proximity to some of the most beautiful international guests are looking for. International
historical sites in Saudi Arabia. It’s an opportunity service standards nuanced for the cultural context of
to explore some of the other offerings beyond the every market is the way forward, according to Gauvin.
religious offerings of this country,” Arrow said.
“We believe that while KSA is not an unknown country “For the country and for the group, inbound is a
to international travelers, it is still undiscovered as completely new business that requires a lot of
a tourist destination,” he added. “There are many investment in the infrastructure, as the country is
travelers who are looking forward to visiting the doing now. But it’s going to be very lucrative for Saudi
Kingdom and exploring its offerings, heritage, natural Arabia in the long term,” Ahussain said.
landscapes, traditions, and cuisine in addition to
the new tourist attractions being developed by the Recognizing the potential of the inbound travel
government, while respecting and appreciating its market, Seera Group is looking at investing in that
cultural environment.” space as well. “We are very serious about the inbound
business, and we have all these partners who are
The Kingdom is also recognizing the need to ease working on creating a dedicated inbound division
restrictions in order to truly be a viable option for that will focus on identifying the various needs of
international travelers. “The Red Sea Project will be various source markets and which of the source
formed in a special economic zone with a world- markets we want to focus on,” said AlDawood. “We are
class regulatory environment built around relaxed looking into the kind of products required to build
social norms and designed to welcome visitors and packages around that. We are also working to create
investors alike. Western dress codes will be quite a technology platform that enables multiple tour
acceptable, for example,” Pagano said. operators or travel agencies around the world to be
able to access Saudi content.”
Rijal Alma’a, Saudi Arabia

HAJJ AND UMRAH

TRAVEL SEGMENT
The Saudi Arabian monarchy is the
gatekeeper of the two holy cities and the
mosques of Makkah and Madinah. The
Muslim community undertakes two kinds
of pilgrim trips to these mosques: Umrah,
which can be completed any time of the
year, and Hajj, one of the five pillars of Islam,
the annual pilgrimage trip that is considered
a mandatory religious duty to be carried out
at least once in their lifetime.
Until a couple years ago, Muslims from around

the world who wanted to visit Makkah or
Madinah for Umrah could only do so within a
short window of two or three months a year.
Following the announcement of tourist visa
in September 2019, visitors can now not only
complete their Umrah pilgrim trips any time
during the year but they also do not need
specialized Umrah visas anymore. Visitors
with a tourist visa can undertake Umrah.
Hajj and Umrah travelers are the primary

inbound travelers into Saudi Arabia, and
this segment has been growing every year.
According to the Vision 2030 document,
the expansion of the two holy mosques in
Makkah and Madinah tripled the number of
foreign Umrah visitors over the last decade
from 2005 to 2015, reaching a height of
8 million in 2015. As of August 2019, the
number of pilgrims performing Umrah has
exceeded 2.4 million. The 2019 Hajj season
saw more than 1.8 million international
pilgrims traveling to the Holy City.
Mawasim, Seera Group’s Hajj and Umrah

focused brand, offers tour packages to tour
Makkah, Saudi Arabia
Makkah Grand Mosque, Saudi Arabia
operators in key source markets. Mawasim is one operators options to buy tours with varying degrees
of the few licensed agencies that work with the of luxury and as focused or diverse as they want.
government to procure the right visas for Hajj travel. “For a customer who has bought one of our VIP
While travelers can undertake Umrah with a tourist packages, for example, they arrive in Jeddah, they
visa after the September 2019 announcement, there have a BMW waiting to take them to their hotel, they
are only a limited number of Hajj visas available for have reservations at five-star hotels and are already
every country. And the process can get extremely checked in, they go straight to their room, and if they
complicated. want to explore Jeddah, we arrange for guided tours
as well,” Khatri said. Other luxury travel perks include
“The number of Hajj and Umrah travelers is constantly transport to Makkah and Madīnah, express access to
growing, and we aim to simplify the trip planning the mosques, and so on. Every step of the traveler’s
process with products and packages that make sense arrangements is taken care of.
to our customers,” said Tarique Khatri, vice president
for the Center of Excellence at Seera Group. Travel But Khatri also pointed out that none of these
agents often buy different elements of the Hajj and/ packages are made arbitrarily. “We carefully evaluate
or Umrah travel package separately. They rely on one the preferences and behaviors of our source markets
agency to help with the visa, another for airline tickets, before we put together a package. For example,
another for accommodations — and if someone wants those traveling from Egypt typically like to spend a
to extend their trip, there are more vendors involved. particular number of days on average in Madinah
“The result is inconsistencies when it comes to service and a particular number of days in Makkah. Those
delivery,” Khatri said. numbers differ for Indian pilgrims, and our packages
are designed to meet those needs and expectations,”
Mawasim uses its data to create travel products and Khatri noted.
packages that work for the customer. They offer tour
According to Khatri, apart from facilitating “Hajj and In terms of what religious travelers are looking for,
Umrah visits within the Kingdom, Mawasim will based on Mawasim’s findings, one of the most
serve key international source markets, including popular requests is for accommodations that are
Kuwait, the UAE, Jordan, Egypt, Algeria, India, close to the Haram Mosque. “Ultimately it comes
Pakistan, Indonesia, Malaysia, and Iraq, among others, down to the budget, but of course, they want to stay
addressing the requirements of all four key traveler closer to Haram, because the closer they are, the more
segments: individuals, couples, families, and groups.” frequently they can go to Kabbah,” Khatri said. Kabbah
is the building at the center of Haram Mosque.
In order to meet the demands of the growing
number of Hajj and Umrah travelers, the government Mawasim also finds that after completing their
is directly investing or facilitating investments from pilgrimage, many travelers want to stay on in Jeddah
the private sector. “The Haram Mosque is the most to explore the city and do a little bit of shopping. Also,
important mosque for Islam and is being expanded; while the main mosques of Makkah and Madinah.
there are many new hotels under construction and are the primary religious draws, Saudi Arabia’s
many new properties that are opening,” Khatri said. significance to the genesis of Islam means that there
To improve access to the holy cities, there are new are other religious and historic sites near the holy
high-speed train connections between Jeddah, cities that people often want to stay and visit.
Makkah, and Madinah.
However, it is not just other travel segments that
In spite of all these developments, demand stand to benefit from an increase in inbound pilgrim
currently outpaces Saudi Arabia’s ability to grow trips. “We have already seen business travelers in
the infrastructure and speed of processing visa some cases extending their stay to undertake Umrah,”
applications, and keeping up will be key to actually Khatri said. “With business travel growing, we expect
capitalizing on the demand. Umrah consumption to grow as well.”
Madinah, Saudi Arabia

CONCLUSION
Saudi Arabia has a lot of ground to cover and is
making significant moves to grow domestic, Hajj
and Umrah, business, and international inbound
travel markets. Travel brands with a presence in Saudi
Arabia are extremely positive about the future of
international travel to Saudi Arabia as well, especially
with the latest announcement around electronic
visas. “Saudi Arabia is poised for a new era of travel
as the country undergoes a historic period of growth
and transformation to make the Kingdom more
attractive to travelers,” Gauvin said. “While religious
tourism will remain important to the sector, we
expect to witness a significant increase in leisure
and business travel.” And the goals, benchmarks, and
other programs highlighted as part of Vision 2030 will
be key to driving that significant increase.
One thing that is clear about Saudi Arabia’s

Dadan Kingdom, Saudi Arabia
transformative journey: Travel brands from around the
world looking to gain visibility with Saudi travelers The different agencies within the Saudi Arabian
or looking to enter the Saudi market need local Government as mentioned earlier in the report are
knowledge. While on the surface, halal food, prayer making direct investments and partnerships with the
rooms, and safety seem like the obvious needs to private sector companies. The approach currently is
keep an eye out for, the ultimate booking decision to make these investments as holistic and diverse as
stems from a more nuanced understanding of possible in order to make tourism a sustainable and
traveler preferences, behaviors, goals, and life stage. long-term player in the Kingdom’s economic future.
The outbound and the Hajj and Umrah travel markets When any new destination opens up, there is a lot of
in Saudi Arabia are already very mature and evolved. communication that has to happen in terms of why
The inbound, business, and domestic travel markets it should be considered a destination. “Destinations
are, however, the markets where the most potential are not built overnight, and any destination that has
for growth lies. “Global travelers now are looking for gained a lot of popularity has done so over a period
new experiences,” McAuley said. “They don’t want to of time,” Khatri said. That effectively sums up the
go on the cruise ship or the tour bus and have exactly state of travel in Saudi Arabia. It is a new destination,
the same itinerary as 50,000 other people. They want opening up its borders to tourists for the first time.
to go back home and talk about the new destination, The international community is watching, not only to
the new experience, because that’s more interesting see where all these “liberalization efforts” lead but also
for them and actually that’s what they get more out to see if there is going to be a new destination on the
of. I see Saudi in that realm at the moment. It’s for world stage.
those people who want to discover something new;
this is the time for discoverers.”
ABOUT SKIFT ABOUT SEERA

Skift is the largest intelligence platform in travel, Seera (formerly Al Tayyar Travel Group) is the most
providing media, insights, marketing to key sectors knowledgeable, accomplished and diverse provider
of the industry. Through daily news, research, of travel services in the Middle East and North Africa
podcasts, and Skift Global Forum conferences, region. A balanced portfolio of brands across six
Skift deciphers and defines the trends that matter verticals within the travel and tourism indus-try
to the marketers, strategists, and technologists positions Seera as a significant contributor to the
shaping the industry. growth of the domestic, in-bound and outbound
tourism economies of the Kingdom of Saudi Arabia
SkiftX is Skift’s in-house content marketing studio, and a best-in-class business partner in unlocking the
working collaboratively with partners like Adobe, opportunities in the region. Provid-ing technology
Airbnb, Hyatt, Lyft, Mastercard, and many more powered travel services for consumers, businesses,
on custom projects to engage the world’s largest government partners and religious pilgrims, Seera
audience of travel influencers and decision makers. provides the opportunity to travel in the Kingdom,
across the region, and beyond, like never before.
Visit skiftx.com to learn more or email [email protected].
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DECODING THE SAUDI

ARABIAN TRAVEL AND

Travel and Tourism In Saudi Arabia By the Numbers 6

Saudi Arabia’s Goals for Growing Its Tourism Economy 7

The Way Forward 10

Seera Group Appointed as the Destination Management Company Partner for

Saudi Arabian Traveler Behavior and Preferences 16

International Outbound Leisure Travel Preferences and Habits 18

Seera Fulfills its Promise to Invest in Human Capital Development with

Domestic Travel Behavior 25

Business Travel Trends 26

Understanding Inbound Travel to Saudi Arabia 28

Hajj and Umrah Travel Segment 31

ABOUT SKIFT MASTHEAD

We now stand on the cusp of a momentous time,

We are challenging ourselves to serve as a bridge

Our strength lies in our experience and the reputation

This is not the first time a Middle Eastern country has

“There are specific times when destinations accelerate

This report, created in partnership with Seera Group,

TRAVEL AND TOURISM IN SAUDI ARABIA BY THE

1. Travel and Tourism’s total contribution to Saudi Arabia’s

2. Domestic tourism spending (spending by Saudi Arabia’s

3. Leisure tourism spending (spending by Saudi Arabia’s

4. Business tourism spending (spending on business travel

5. Visitor exports or foreign spending (spending by

SAUDI ARABIA’S GOALS FOR GROWING ITS

Madai’n Saleh, Saudi Arabia

THE WAY FORWARD

Saudi Opens Up Its Borders U.S.A Iceland

The strategy for targeting tourists and travelers is to Australia Norway

China (Hong Kong, Mcau, Taiwan)

AlUla Landscape, Saudi Arabia

and across the world. “The demand for luxury travel

Jeddah beachresort, Saudi Arabia

Abha Mountains Cable Cars,

Using Entertainment and

Night in the City, Jeddah, Saudi Arabia

SAUDI ARABIA NEWS

SAUDI ARABIAN TRAVELER BEHAVIOR AND

Based on monthly surveys conducted by Seera

The Four Segments of Saudi Arabian Leisure Travelers

• Honeymooners: Honeymooners in Saudi Arabia present a specialized kind of

INTERNATIONAL OUTBOUND LEISURE TRAVEL

Access to halal food Saudi Arabians Travel Frequently for Leisure.

Source: Consumer Travel Report, Amadeus, tajawal, and

destination for Saudi Arabians to visit. According to

Most Popular Sources of

When it comes to finding inspiration on where to

Saudi traveler and developed a more omnichannel

SAUDI ARABIA NEWS

respondents said they splurge on a trip, while 44

internal data largely supports that finding.

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Seera Group’s year-to-date (January to August

or internationally. A whopping 86 percent of Saudi

they spend a lot more than other nationalities on the

DOMESTIC TRAVEL BEHAVIOR

AlUla, Saudi Arabia

BUSINESS TRAVEL TRENDS