A handout pictured acquired from the Saudi Ministry of Tourism on Oct 3, 2020, shows a cruise ship sailing off Saudi Arabia’s western coast. (SAUDI MINISTRY OF TOURISM / AFP)
With cruise travel expected to make a splash in Saudi Arabia's nascent tourism industry, experts believe Chinese visitors can help steer the Arab nation to its optimum growth potential.
“(China) will play a major role in the (Middle East) region," according to Moamen Gouda, associate professor of Middle East Economics at the Graduate School of International and Area Studies at Hankuk University of Foreign Studies in Seoul.
The Persian Gulf countries "think highly of Chinese tourism", he said, adding that Saudi Arabia "is doing a tremendous job" of switching the economy from its heavy dependence on oil into more service- and tourism-friendly sectors.
In September 2019, Saudi Arabia opened further its borders to international travel from 49 countries, with a goal of increasing the tourism sector's GDP contribution from 3 percent to 10 percent by 2030. Prior to this, travelers could only visit the Arab nation for religious purposes, business or to see family and friends
Passengers from the Chinese mainland, according to a 2019 report by the Cruise Lines International Association, continued to dominate in Asia with a 51.6 percent market share, trailed at a distance by Taiwan region at 10.4 percent and Singapore at 8.7 percent. India at 8.4 percent overtook Japan to be the fourth-largest Asian source market.
In September 2019, Saudi opened further its borders to international travel from 49 countries, with a goal of increasing the tourism sector's GDP contribution from 3 percent to 10 percent by 2030. Prior to this, travelers could only visit the Arab nation for religious purposes, business or to see family and friends.
The goal is part of Saudi Vision 2030, an economic framework to remove the Arab country's reliance on oil. It also aims to create 1.6 million jobs and to hit the target of 100 million local and international visitors annually by 2030, although the COVID-19 pandemic had stalled its momentum.
Gouda, who is also a board member of the Middle East Economic Association, a non-profit group of scholars based in Lebanon, praised Saudi for opening up tourism and making laws friendly for foreigners, allowing the country to explore its economic potential further.
Patrick Cooke, managing editor for the Middle East and Asia at research and publishing company Oxford Business Group, said that with China emerging as the world's largest outbound travel market and holding a dominant share in the Asia cruise market, “there is every reason to expect that Chinese cruise tourists will be an important engine of growth in Saudi Arabia's cruise segment."
He said that although COVID-19 may have temporarily stalled the momentum, it has had a relatively small impact on revenues in the "high-potential" tourism segment as domestic tourism numbers have remained robust despite internal restrictions.
"At the same time, progress has continued on mega projects like the development of the Red Sea tourism zone which are geared towards medium- and long-term returns," said Cooke, referring to a multimillion-dollar international tourism project introduced by Saudi Crown Prince Mohammed Bin Salman in 2017. The project will be situated between the cities of Umluj and Al Wajh.
He said Saudi policymakers and stakeholders have been working hard to market the kingdom internationally as a unique tourist destination, supported by efforts to develop tourism infrastructure, attractions and expertise.
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We look forward to attracting holidaymakers from China and other parts of Asia to experience our Red Sea itinerary, subject of course, to the travel policies of each country. The great thing with the Red Sea sailings is that there's something for everyone.
Helen Huang, president for China at MSC Cruises,a Swiss-based liner
In August last year, Saudi Arabia moved a step further in this direction after local cruise operator Red Sea Spirit launched Red Sea cruises – its first recreational cruise offerings – for Saudis as part of the Saudi summer campaign.
In April, Swiss-based liner MSC Cruises and Cruise Saudi, a public investment fund-owned company tasked to establish and develop Saudi Arabia's cruise industry, signed a landmark agreement which would allow MSC ships to sail from Saudi waters.
The liner's MSC Magnificawill homeport in Jeddah, a commercial hub and one of the largest cities of Saudi Arabia. The city houses the second-largest port in the Middle East and is a recognized UNESCO World Heritage site. It will offer seven-night Red Sea cruises starting from November until the end of March 2022.
In addition, MSC Cruises' flagship MSC Virtuosa will include calls at the port of Damman, visiting Al-Ahsa oasis, another UNESCO World Heritage site, for its winter 2021 program.
The maiden cruises' calling destinations in Saudi Arabia, Jordan and Egypt promise culturally rich destinations, the Arab nations' best beaches and a chance for guests to explore the region's centuries' old deep-rooted traditions.
"We look forward to attracting holidaymakers from China and other parts of Asia to experience our Red Sea itinerary, subject of course, to the travel policies of each country. The great thing with the Red Sea sailings is that there's something for everyone," said Helen Huang, president for China at MSC Cruises.
The voyages, Huang said, will offer passengers "culture and traditions that date back thousands of years, somewhere new to visit, pristine beaches, fabulous weather and the chance to enjoy a well-earned break after what has been a challenging time for one and all".
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Oxford Business Group's Cooke said Saudi Arabia and China "already have strong ties at the investment, business and diplomatic level", and Chinese tourists "are likely to be a key target for new attractions developed across the kingdom".
Cruise tourism will be an important niche segment within the kingdom's overall offering, he said, with high-level backing to ensure the Red Sea coast becomes an aspirational leisure destination for affluent and adventurous international travelers.
"Looking ahead, it is reasonable to expect the last quarter of the year to be a turning point, with national and global vaccination efforts allowing for the resumption of international flights," said Cooke.