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Logo of Aseer Development Authority
Crown Prince Mohammed bin Salman unveiled, on Sept. 28, a strategy to develop Aseer region into a global tourism destination under the theme "The Arabian Highland", through injecting SAR 50 billion in diversified investments.
Aseer Development Authority (ASDA) stated that the strategy aims to invest in strengths, and enhance the region's position on the global tourism map to become a world-leading tourist hub and a destination for entertainment and culture.
Meanwhile, its goals also include ensuring a balance between development, preservation, and protection of the natural environment.
The strategy effectively contributes to the economy through developing the contribution of the private sector, maximizing the value generated from the energy sector, and unleashing the capabilities of the promising non-oil sectors.
In addition, the strategy aims to maximize the assets and the role of the Public Investment Fund (PIF) as a driver of growth, and to deepen the integration of the Saudi economy into the regional and global system as well as develop non-oil exports.
The strategy will have a role in increasing employment rates through developing human capital, in line with the needs of the labor market. It will help provide job opportunities through micro, small and medium-sized enterprises (MSMEs).
The strategy will also attract expatriate talent to boost the economy.
The strategy mainly aims to provide tourism services to middle-class citizens, while ensuring integration with other tourist destinations and enhancing Aseer's distinguished position on the global tourism map.
The strategy identified four areas for the development of tourism, in addition to taking advantage of the agricultural nature in the area to develop the agricultural and rural tourism, with two agricultural tourism destinations targeted.
PIF's projects will play an important role as advanced core assets.
The strategy also targets nearly 10 million visitors by 2030, as this growth depends mainly on domestic entertainment and international tourism.
Economic impact of the strategy by 2030:
- Increase in gross domestic product (GDP): Aseer’s basic GDP reaches SAR 71 billion, and the strategy aims to raise it by SAR 4 billion.
- Average annual GDP growth: The baseline 2018-2030 compound annual growth rate (CAGR) is 1.6%, which is targeted to increase by 0.8%.
- Increase in the private sector's GDP: The private sector dominates 44% of the basic GDP, which is targeted to grow by 13%.
Labor market by 2030:
Growth in the total number of jobs: Job opportunities in Aseer reach 632,000, and the strategy aims to add 130,000 more jobs.
Percentage of growth in the private sector's jobs: The basic job opportunities in the private sector amount to 74,000, which is targeted to increase by 56,000 jobs.
Target groups:
The strategy aims to meet the needs of middle-class Saudi families and raise international and domestic visits to reach 2.4 million and 1 million, respectively, by 2030.
According to the strategy, the development of Aseer region depends on building a mix of mid-priced assets and luxury master projects (50% of three-star hotel rooms).
Investments will be made in hospitality services, through focusing on furnished housing units, three to four-star hotels, and primarily luxury brands in the PIF's projects.
The strategy expects to increase the number of hotel rooms by about 11,000 and raise the furnished housing units by about 12,000, bringing the total number of rooms to 37,000 in the hospitality and products sector by 2030.
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