Biban 24 sees deals worth over $4.79bn on opening day

JEDDAH: Oman’s tourism sector contributed over 2.12 billion rials ($5.51 billion) to the Gulf country’s national economy in 2024, up from 1.75 billion rials in 2018, according to official data.

The latest figures from the National Center for Statistics and Information indicate that this increase reflects a compound annual growth rate of 3.2 percent, reinforcing the industry’s role as a key pillar in the sultanate’s economic diversification strategy.

The sector’s contribution to gross domestic product also rose to 2.7 billion rials, up from 2.3 billion rials in 2018, underscoring tourism’s expanding macroeconomic impact, according to the Oman News Agency.

European travelers significantly boosted Oman’s tourism sector in 2024, driving a 10.2 percent rise in hotel revenues during the first five months of the year, according to NCSI data released last July.

The country’s growing appeal among European tourists, alongside strong local and regional demand, reflects its broader strategy to diversify its tourism base and bolster the hospitality sector, in line with similar initiatives across Gulf Cooperation Council member states.

Minister of Heritage and Tourism Salim bin Mohammed Al-Mahrouqi said the growth in visitor arrivals, spending, and economic value reflects the result of focused and ambitious efforts by the ministry to promote Oman as a rich and diverse tourism destination, according to ONA.

He added that the latest indicators serve as a testament to the government’s economic diversification policies and effective inter-agency coordination that supports investment and accelerates project implementation.

Al-Mahrouqi also said that the ministry continues to adopt innovative marketing strategies, strengthen partnerships with the private sector, and develop offerings to enhance the overall visitor experience.

GDP growth forecast at 2.2% in 2025

The sultanate’s economy is forecast to grow by 2.2 percent in 2025, up from 1.7 percent the previous year, supported by a recovery in oil activities and steady non-oil sector expansion, according to the Ministry of Economy’s 2025 economic outlook.

Inflation is projected to rise modestly to 1.3 percent, up from 0.6 percent in 2024. Still, it will remain within the target range of Oman’s 10th five-year plan, aided by continued government subsidies and stable global commodity prices.

The ministry estimates GDP at constant prices will increase from 38.3 billion rials in 2024 to 39.2 billion rials in 2025. Oil activities are expected to rebound with 1.3 percent growth after a 3 percent contraction in 2024, while non-oil sectors are projected to grow by 2.7 percent.

Medium-term momentum is expected to continue through 2026 and 2027, bolstered by strategic projects and higher oil production, ONA reported.

RIYADH: Saudi travelers are increasingly relying on smart technologies, with 87 percent using generative artificial intelligence tools like ChatGPT and Gemini to plan and manage their vacations, according to a survey. 

In its latest report, global consumer insights provider Toluna revealed that 46 percent of Saudi travelers are using AI assistants to discover activities, while 43 percent use them for translation purposes. 

These findings align with the broader trend observed in the Kingdom, where the number of people using AI tools is increasingly rising. 

In June, a report prepared by Google with UK-based research agency Public First showed that 80 percent of Saudi adults use AI tools, with one in three utilizing them regularly. 

This is nearly double the share of adults in the US who report using large language model-based chatbots, which stood at 52 percent according to a study by Elon University in North Carolina.

“AI is becoming a trusted travel companion, and not just among younger generations. From finding hidden gems and translating on the go, to getting activity suggestions, young Saudi travelers are making the most of AI to enhance every part of their journey,” said Georges Akkaoui, enterprise account director Middle East, Turkiye, and Africa at Toluna.

The survey said 43 percent of Saudi travelers use AI to find the best deals, while 31 percent rely on these technologies to optimize their itineraries, and 38 percent use them for restaurant suggestions. 

“What is interesting is that this (use of AI) is not limited to the tech-savvy; we are seeing notable adoption even among older travelers, with over 40 percent of 45–60-year-olds also using AI for deals, activities, and translation,” said Akkaoui. 

He added: “In fact, less than 15 percent of respondents are not using AI for their travels. This shows that generative AI is no longer niche, it is becoming mainstream, cross-generational, and it is already reshaping how people prepare for and experience their trips.” 

These findings also underscore the progress of AI adoption in Saudi Arabia, with the technology emerging as a key component of the Kingdom’s post-oil economic development strategy. 

According to the Global AI Competitiveness Index released in January, the Kingdom ranked 15th globally in research output in the sector, having produced 29,639 AI-related publications.

This ranking places it among the top contributors to global research and highlights its emerging role as a regional technology leader.

Saudi Arabia’s Public Investment Fund, in partnership with Google, launched Project Transcendence in 2024, a $100 billion undertaking, as part of its efforts to advance the growth of AI.

The initiative is set to bolster the growth of local tech startups, generate employment opportunities, and foster collaborations with global technology firms, positioning the Kingdom at the forefront of regional innovation.

Traditional sources remain strong

Despite the significant adoption of AI tools in the travel sector, traditional information sources, along with influencers and online recommendations, continue to play an important role in shaping travel decisions among Saudi travelers.

The Toluna survey said 41 percent of the Kingdom’s travelers still rely on recommendations from family members and friends. 

Some 46 percent of Saudi travelers prioritize safety and security when selecting destinations, while 48 percent consider scenery as the decision-making factor. 

“Despite having access to more information than they can possibly digest, and probably because of that overload, many still turn to those they trust for inspiration, with family and friends remaining an important source of travel recommendations,” said Akkaoui. 

“At the same time, it is not surprising that, as with other aspects of their lives, younger travelers also rely on influencers and online recommendations for ideas and inspiration, showing how digital and personal guidance now shape the travel journey side by side,” he added.

Meanwhile, 47 percent of the respondents plan to travel internationally this summer, while 37 percent are opting for leisure trips within the Kingdom. 

Only 4 percent of respondents reported having no travel plans, highlighting a strong overall appetite for summer travel.

Underscoring the growth of domestic tourism in May, Saudi Arabia’s Tourism Minister Ahmed Al-Khateeb said the Kingdom is placing human-centered travel at the forefront of its tourism strategy, focusing on authentic cultural experiences, meaningful interactions, and community engagement. 

He added that this people-first approach is designed to balance the nation’s rapid infrastructure development with heritage preservation and stronger community connections. 

The National Tourism Strategy targets 150 million annual visitors by 2030, after surpassing the 100 million milestone ahead of schedule, with official data showing the Kingdom welcomed 116 million tourists in 2024, exceeding its annual target for the second consecutive year.

Turkiye, the most preferred destination

The survey found that 19 percent of Saudi travelers prefer Turkiye as their favorite destination to visit, followed by Egypt at 15 percent, the UAE at 14 percent, and the US at 10 percent. 

Additionally, 8 percent of respondents are heading to Switzerland, 7 percent to the UK, France, and Thailand, while 6 percent have chosen Italy as their summer destination.

“While Turkiye remains the top destination across all age groups, younger travelers show a stronger interest in long-haul and East Asian locations. For example, Japan appeals to 14 percent of 18–28-year-olds, compared to just 3 percent of those aged 29–44, and 0 percent among travelers aged 45–60,” said the report. 

In contrast, 14 percent of older travelers aged between 45 and 60 are planning a trip to the UK, a destination that sees less interest from younger respondents as a summer getaway. 

In terms of spending, most international travelers are willing to invest significantly in their summer experiences. 

The report also said 40 percent of Saudi travelers are planning to set aside more than SR10,000 ($2,666.39) per person on their trips, while 22 percent expect to spend between SR7,500 and SR10,000. 

Some 21 percent of the respondents are ready to spend between SR5,000 and SR7,500, while 15 percent are planning to budget between SR2,500 and SR5,000. 

The report further said that 40 percent of respondents regularly use eSIM cards while traveling, with 21 percent having tried it before and 20 percent expressing interest despite limited familiarity. 

“The evolving travel preferences of Saudi residents reflect broader global shifts toward more connected, experience-driven tourism,” said Akkaoui. 

“Whether it is the desire for natural beauty, the pursuit of cultural depth, or the appeal of cooler summer climates, today’s travelers from the Kingdom are more informed, digitally empowered, and adventurous than ever before,” he added.