Tareq Alshaghrood speaks with China Daily during his first time in Hong Kong at the sidelines of IHIF Asia at Regent Hotel in Tsim Sha Tsui where the world-famous Chinese traditional junk Dukling can be seen from afar on Sept 9. [Photo by JAN YUMUL/CHINA DAILY]
Saudi Arabia is targeting more Chinese participation in its maritime tourism ambitions, a visiting industry insider said as Riyadh reiterated its goal to become a global tourism powerhouse.
"Come in and capitalize on those opportunities", Tareq Alshaghrood, general manager of investment planning and attraction at the Saudi Ministry of Tourism, told Chinese investors, developers, and operators.
Alshaghrood, in an interview with China Daily on the sidelines of the International Hospitality Investment Forum Asia in Hong Kong from Sept 9 to 11, said one of their aims is to broaden the potential of the Saudi yacht market and attract more traffic to the Red Sea through water activities like snorkeling, cruises, beach outing and diving.
On Sept 5, the Saudi Red Sea Authority (SRSA) issued the country's first-ever regulations for Saudi yachts.
According to the Saudi Press Agency, these include regulating their activities, outlining requirements and conditions, and overseeing the issuance of tourism and leisure licenses and permits.
Alshaghrood said the aim is to ensure environmental protection, sustainability, and adherence to all safety requirements as part of the SRSA's key role in developing a sustainable coastal tourism sector.
"The Saudi Red Sea Authority is one of the initiatives we launched following the release of our strategy because the water activities, in general … there were obstacles and issues," said Alshaghrood.
One hurdle, he said, was the yacht maritime regulation having multiple steps just to bring the yacht to the Red Sea. This is solved by the SRSA handling all of the regulations and acting as a single interface for users.
"It will make things easier for people that decide to bring their yachts to the kingdom and enjoy the beautiful Red Sea. And it extends beyond that," said Alshaghrood.
A primer "Prosper in Saudi" is part of the materials from the Saudi Ministry of Tourism distributed to guests at IHIF Asia. The first page shows no text, just a photo of a yacht that speaks volumes on Saudi's coastal tourism ambitions. [Photo by JAN YUMUL/CHINA DAILY]
He said they would like to see more activity in the winter months as yachting interest dies down in Europe outside the summer.
"We want to attract a lot of that traffic into the Red Sea in the off-season which is the peak season for us," said the Saudi government official.
According to a report by Spherical Insights and Consulting, the global luxury yacht market was valued at $9.2 billion in 2023 and is expected to reach $17.3 billion by 2033.
The United Arab Emirates accounts for the largest number of superyachts — luxury vessels usually longer than 100 feet (30.48 meters) — owned in the region, according to IYC Yachts, one of the largest yachting companies worldwide.
Saudi Arabia is set to see growth in the sector with the NEOM giga project and its island destination Sindalah poised to open as a gateway for the global yachting community.
The Jeddah Yacht Club and Marina, the first on the Red Sea Coast, officially opened in March 2022 and can accommodate over 100 yachts and superyachts.
On Sept 3, the SRSA launched its "More than a sea" campaign, focusing on its role in regulating navigational and marine tourism activities, issuing licenses and permits, and preparing the infrastructure for these activities.
The new regulations include attracting investment in the Red Sea, which offers a promising investment environment, such as a population of around 7 million people supporting coastal tourism along an extensive 1,800 km coastline.
Alshaghrood noted that Saudi Arabia had close to 150,000 visitors from China last year. They spent over $550 million — a 59 percent increase from 2019 — which he said shows a strong interest in Saudi Arabia as a destination.
"We received the approved destination status from China. Essentially, what that means is easing group travel to Saudi Arabia, making it more accessible, more attractive," Alshaghrood told China Daily.
"We believe this is a great milestone that will help us expand what is a key source market for us," he said.
"Generating more visits from China will be more critical to the growth of visits and spending in the tourism sector," he added.
Enjoying coffee the Saudi way. An exhibitor pours "qahwa" or Arabic coffee, which is usually enjoyed with dates. [Photo by JAN YUMUL/CHINA DAILY]
Since July 1, Chinese tourists have enjoyed easier travel to Saudi Arabia.
This is part of agreements between China and other countries that see tourists enjoy simplified visa procedures, cheaper tickets, and increased daily flights.
Other perks include Chinese signage at airports alongside tour guides and hotel staff who speak Mandarin.
Alshaghrood welcomed the first wave of 175 Chinese language teachers that arrived in Saudi Arabia last week as an "important step" in bringing both cultures "closer together" as the Arab nation gradually opens to more visitors.
"I think today the kingdom represents one of the largest opportunities in tourism on the global market," he said.
"It's a G20 country. It has a sophisticated banking sector and it has a wealth of resources both monetary and natural. That includes the culture, the sites, and the different locations that exist there," Alshaghrood said.
While in Hong Kong, Alshaghrood said Saudi officials planned to meet with existing and potential partners.
"Our main objective is to raise awareness about what we're trying to do in the kingdom and what we're doing in the kingdom and help clarify the opportunities in the kingdom and ease the landing of Chinese investors who would like to enter the kingdom," he said.
