National Tourism Development Project in The Kingdom of Saudi Arabia

316 Pages·2012·1.88 MB·English

by  Ernst & Young

The Supreme Commission
for Tourism
National Tourism Development
Project
In The Kingdom of Saudi Arabia
Phase 1: GENERAL STRATEGY

Draft Version No 4 / 030702

ميحرلا نمحرلا للها مسب

IN THE NAME OF ALLAH, THE COMPASSIONATE, THE MERCIFUL
GENERAL STRATEGY
CONTENTS

SECTION PAGE
ABBREVIATIONS V
List of Tables VII
List of Figures X
Executive Summary A
CHAPTERS
Ch1 Introduction 1
Ch2 Methodology 4
Ch3 Tourism Markets and Demand Patterns 7
Ch4 Tourism supply 21
Ch5 Role of Tourism in the National Economy 33
Ch6 Socio-Cultural Considerations 45
Ch7 Environmental Considerations in Tourism Development 51
Ch8 Role of Cultural Heritage in Tourism Development 59
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GENERAL STRATEGY
CONTENTS

Ch9 Vision Mission and Objectives of Tourism Development 73
Ch10 Demand Projections and Tourism Growth 81
Ch11 National Tourism Structure Plan 92
Ch12 Required Supporting Infrastructure and Services 102
Ch13 Framework, Organizational Structure and Tourism Development 114
Ch14 Development Standards and Design Guidelines 127
Ch15 Quality Assurance Systems and Standards 137
Ch16 Human Resource Development for Tourism 151
Ch17 Financing Tourism Development 160
Ch18 Legislative Framework and Regulatory Development 171
Ch19 Toursim Research and Information Center 185
Ch20 Economic Costs and Benefits of Tourism Development 195
Ch21 Socio-Cultural Impacts of Tourism Growth and Development 206
Ch22 Environmental Impacts of Tourism Growth and Development 216
Ch23 Summary of Key Issues, Strategies, Policies and Actions 225
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GENERAL STRATEGY
CONTENTS

APPENDICES
A Terms of Reference for Phase 1 General Strategy of the National Tourism Development Project – Kingdom of Saudi Arabia 253
B National Tourism Development Project Inputs 263
C Tourism Growth Scenarios 275
D Economic Costs and Benefits of Individual Projects – Project Dossier Checklist 288

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GENERAL STRATEGY
ABBREVIATIONS

ABBREVIATIONS

AHTA Arab Hotel and Tourism Association GIS Geographical Information System
ATM Arab Travel Market HUT Hajj Umrah and Tourism
BES Business Expenditure Survey IAAPA International Association of Amusement Parks and
Attractions
BOP Balance of Payments
IATA International Air Transport Association
BSS Business Sector Survey
IHRA International Hotel & Restaurant Association
CAP Civil Aviation Presidency
I/O Input/Output Table
CBA Cost Benefit Analysis
ISIC International Standard Industrial Classification
CDD Civil Defence Department
IVS International Visitor Survey
CDS Central Department of Statistics
IT Information Technology
DOA Deputy Ministry of Antiquities and Museums
JIP Jeddah Islamic Port
DP Development Plan
KSA Kingdom of Saudi Arabia
DTS Domestic Tourism Survey
MICE Meetings, Incentives, Conferences and Exhibitions
DZIT Department of Zakat and Income Tax
MOA Ministry of Agriculture
E/D Entry/Departure
MOC Ministry of Commerce
E&Y Ernst & Young
MOE Ministry of Education
FEC Family Entertainment Centre
MOFNE Ministry of Finance and National Economy
FGD Focus Group Discussion
MOFA Ministry of Foreign Affairs
FX Foreign Exchange
MOH Ministry of Hajj
GCC Gulf Co-operation Council
MOI Ministry of Interior
GDBG General Directorate of Border Guards
MOL Ministry of Labour
GDP Gross Domestic Product
MOP Ministry of Planning
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GENERAL STRATEGY
ABBREVIATIONS

MOMRA Ministry of Municipal and Rural Affairs SCT Supreme Commission for Tourism
MOT Ministry of Transportation SCECO Saudi Electricity Company
NTA National Tourism Administration SIDF Saudi Industrial Development Fund
NGO Non-Governmental Organisation SMEs Small and Medium Enterprises
NTIC National Tourism Information System SNA System of National Accounts
NTO National Tourism Organisation SRO Saudi Railways Organisation
OECD Organisation for Economic Co-operation and STC Saudi Telecommunication Company
Development
STDP Sustainable Tourism Development Plan
OJT On-the-Job Training
SWCC Saline Water Conservation Corporation
PADI Professional Association of Diving Instructors
TDA Tourism Development Area
PIF Public Investment Fund
TGS Tourism Growth Scenarios
PTC Provincial Tourism Council
TICS Tourism Investment Climate Survey
QASS Quality Assurance Systems and Standards
TSA Tourism Satellite Accounts
REDF Real Estate Development Fund
UAE United Arab Emirates
ROE Return on Equity
USAP Umrah Application Service Provider
ROI Return on Investment
UNDP United Nations Development Programme
SABIC Saudi Arabian Basic Industries Corporation
VFR Visiting Friends and Relatives
SAGIA Saudi Arabian General Investment Authority
WBES World Bank Environment Survey
SAMA Saudi Arabian Monetary Agency
WBG World Bank Group
SAMBA Saudi American Bank
WTM World Travel Market
SAPTCO Saudi Arabian Passenger Transport Company
WTO World Tourism Organisation
SR Saudi Riyal
SAUDIA Saudi Arabian Airlines
SAYHA Saudi Arabian Youth Hostels Association
v
GENERAL STRATEGY
LIST OF TABLES & FIGURES

TABLES Page
2.1 Preliminary Data Collection and Research Programmes 4
3.1 Size of the Travel & Expenditure Flows 11
3.2 Market Segments by Purpose of Trip 12
3.3 Options in Prioritising Market Segments 16
3.4 Major Gaps in Production Basket 17
3.5 Tourist Accommodation – Generic Options 18
5.1 the Kingdom’s Visitor Profile in year 1421H (2000G) 37
5.2 Domestic Trips and International Visitors of Different Regions 38
5.3 Estimates of National Tourism Spending by Market Segment (SR Million) 39
5.4 Estimates of National Spending by Tourism Sub-Sector (Category) 40
5.5 Tourism Growth Forecast (Expected Scenario) 41
5.6 Tourism Spending by Main Regions, Year 1421H (2000G) 43
8.1 Desire to Visit Historical Sites by Purpose of Main Holiday in the Kingdom 60
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GENERAL STRATEGY
LIST OF TABLES & FIGURES

8.2 Propensity of International Tourists to Visit Historical Sites 61
8.3 Propensity to Visit Heritage Sites by Purpose of Visit 62
8.4 Fit Between Cultural Heritage Resources and Likely Market Demand from Main Growth Segments 62
9.1 Economic, Social and Environmental Objectives 78
10.1 Tourism Market Segments: Trips 1421H (2000G) 83
10.2 Domestic and International Tourism Growth Scenarios 87
10.3 Expected Growth Scenario 1426 – 1441H (2005 – 2020G) 88
10.4 Visitor Nights by Market Segment 89
10.5 Room Demand During the Year 1421H (2000G) 89
10.6 Room Demand Growth Estimates (Expected Scenarios) 90
11.1 List of TDAs and TSs 104
12.1 Mode of Transport Used for Tourist Trips During 1421H (2000G) 107
12.2 Accommodation Used for Tourist Trips During 1421H (2000G) 108
12.3 Estimated Current and Future Road Traffic by Purpose 109
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