Saudi Arabia: Transforming the Tourism Experience

In May 2024, the global tourism industry was experiencing a significant recovery, with international tourism projected to surpass pre-pandemic levels. According to the World Tourism Organization, around 1.3 billion tourists visited foreign destinations in 2023, representing 88 per cent of pre-pandemic figures. Factors such as the resurgence of Chinese outbound tourism, improved air connectivity, and the recovery of Asian markets contributed to this growth. Saudi Arabia, recognizing the importance of Chinese tourists, set ambitious targets to attract them and aimed to host 5 million Chinese visitors. To achieve this, Saudi Arabia focused on enhancing guest experiences with personalized services, efficient energy management, and innovative technologies like augmented reality and virtual reality. At the fifty-third St. Gallen Symposium in May 2024, Gloria Guevara Manzo, chief special adviser at the Saudi Ministry of Tourism, emphasized the significant role of Chinese tourists in driving global tourism’s recovery. Given these shifting dynamics, could Saudi Arabia become a prime destination for Chinese tourists? What strategies should a decision-maker like Manzo devise to realize this vision?

The case is ideal for postgraduate courses dealing with international tourism management, strategic management, and heritage tourism. It discusses the unique consumer preferences and requirements of Chinese tourists across the value chain, along with a snapshot of Saudi Arabia’s tourism agenda under its Vision 2030. The case also addresses the challenges of hosting Chinese tourists. After working through the case and assignment questions, students will be able to do the following:<br><br><ul><li> Analyze outbound tourist preferences and requirements.</li><li>Evaluate how to build tourism experiences for a select high-value segment of the global tourist population.</li><li>Assess the challenges in destination planning across the value chain.</li><li>Examine the challenges in managing the tourism experience, as well as the effectiveness of strategies and interventions catering to both mainstream and niche tourist segments.</li></ul>

• resurgence of China’s domestic tourism
• Host countries with destination planning
• Saudi development of tourist destination
• Challenges of hosting Chinese tourists