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Saudi Vision 2030: Kingdom’s aviation sector on an expansion spree

Around 7.8 million tourists visited Saudi Arabia during the first quarter of 2023, according to OAG

As Saudi Arabia strives to fulfil its ambitious economic diversification objective called the ‘Saudi Vision 2030’, the aviation sector has taken centre stage now, with the Kingdom’s government now planning to host and serve over 300 million passengers annually. The airline rivalry in the Middle East is increasing (albeit in a healthy manner), with Saudi surpassing China in 2023 as the second-fastest-growing tourist destination.

In addition, the capacity to and from Saudi Arabia has significantly recovered from the pandemic, supporting the nation’s growth goals. The Middle East has experienced the fastest growth in inbound capacity, up more than 20% since 2019.

Growing As A World Leader

Around 7.8 million tourists visited Saudi Arabia during the first quarter of 2023, according to OAG. The figures indicate a 64% rise over the same period before the COVID-19 pandemic, making it the nation’s best quarterly performance. According to reports, Saudi Arabia was rated 13th in the world for hosting tourists from other countries in 2016.

‘Saudi Vision 2030’ was introduced in 2016 to make the nation a global leader in tourism by boosting tourist experiences, enhancing safety, and promoting environmental sustainability. The country has lofty growth goals in the next seven years, including connecting 250 locations over 29 airports and greeting 330 million visitors a year through two global long-haul connection airports, in addition to the government’s goal of drawing 70 million tourists.

More Capacity Abroad Than Here

According to reports, Saudi Arabia’s domestic air travel business fared better than that of other nations throughout the pandemic, enabling capacity to rise once most restrictions were lifted. According to OAG, there is 20% more capacity available internationally than in 2018, surpassing domestic capacity.

It happens after the nation put a lot of effort into luring foreign tourists, including requiring visas for visitors from developed markets. According to reports, travellers who book flights on Saudia or Flynas receive a free 96-hour stopover visa from the Saudi Tourism Authority. Officials expect that this action will increase accessibility to Saudi Arabia’s tourist attractions.

Since 2019, inbound capacity has grown by 23%, accounting for more than 80% of all international capacity. The Asia-Pacific area, which now accounts for 10% of Saudi Arabia’s global exports, is the second-largest market.

Flight Capacity

According to OAG data, Saudia, the country’s largest airline, carries the most capacity at more than 40%. The next two companies, Flyabdeal and Flynas, share around 25% of the market.

Although only making up around 5% of the total, inbound seats from Europe increased the highest. Even yet, it continues to perform better than North America’s capacity, which has not yet recovered from the COVID pandemic. OAG estimates that capacity, which makes up 0.3% of Saudi Arabia’s international capacity, is down 16% from the region.

Saudia is forging ahead with obligations for new aeroplanes because a section of ‘Vision 2030’ focuses on sustainability. The airline reportedly signed a letter of understanding to buy 100 Lilium eVTOL jets earlier 2023, which will have zero operating emissions, in addition to placing more than 30 Boeing 787 Dreamliner orders.

Airport Renovations At Abha

Abha International Airport will undergo renovations as Crown Prince Mohammed bin Salman announces the latest step Saudi Arabia is taking to modernize the travel industry.

The centre in the country’s southwestern province of Asir will expand during the first phase, which is anticipated to be finished by 2028, from 10,500 square meters to 65,000 square meters.

From 1.5 million people each year, the airport’s capacity will rise to more than 13 million. Additionally, the capacity will be tripled, handling more than 90,000 flights annually.

Twenty gates, 41 check-in counters, and seven self-service check-in desks are all planned for it.

Additionally, self-service facilities, additional parking infrastructure, and passenger boarding bridges are being built as part of the expansion. The new airport is intended to reflect the Asir region’s architectural identity and highlight Saudi culture. The concept aims to provide travellers with a high-efficiency experience and seamless services.

The Abha airport’s construction began in 1975 and was completed in 1977. The National Center for Privatization and the Public-Private Partnership in Saudi Arabia included it on a list of four airport projects in April.

The kingdom’s Vision 2030, which intends to improve air connectivity to 250 destinations and transfer 330 million passengers, is in line with the aviation plan.

Final Observation

Saudi Arabia has made significant progress toward achieving its ‘Vision 2030’ goals of becoming a global leader in tourism and improving air connectivity.

The country’s aviation sector’s operational capacity to and from Saudi Arabia has significantly recovered from the pandemic, supporting the nation’s growth goals.

The Middle East has experienced the fastest growth in inbound capacity, up more than 20% since 2019.

Additionally, the expansion of Abha International Airport is a significant step towards modernizing the travel industry and providing travellers with a high-efficiency experience and seamless services.

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