Interview with Fahd Hamidaddin, CEO, Saudi Tourism Authority

25 Mar Interview with Fahd Hamidaddin, CEO, Saudi Tourism Authority

Your recent assertion that “Tourism is the New Oil” is notably evident in the remarkable 58% surge in tourism growth, solidifying the Kingdom’s leading position within the G20 and prompting a revision of the Saudi Vision 2030 goal to ambitiously welcome 150 million visitors a year. Could you explain the pivotal factors or driving forces that have enabled the extraordinary growth of the Kingdom’s tourism sector?

Like any sector, you start with a vision. In our case, it is beyond the sector, it is a whole nation’s vision that looks at all sectors that matter going forward. The sectors that matter are those that will address our pain points and drive growth that surpasses the growth of existing sectors sustainably. With that, we need to move away from oil, and create new engines of growth, address the pain, and drive higher growth than any other sector.

The pain that we have is unemployment. We looked at all human-led sectors, and tourism is by far the highest provider of new jobs in the future. It has always been, and it will continue to be. When I say human-led sectors, that is sports, culture, music, art, and tourism. The latter is the highest in providing new jobs going forward when the rest of the sectors are handing over the jobs to machines.

This sector is the best-performing one in terms of scale and the number of opportunities that will be created. The difficult part with unemployment is creating jobs for the low-skilled. If you are a professional, you have a bachelor’s degree or above, or you have high school years skilled, a vocational degree, it is easier to find a job; the lower the skill, the harder it is to find a job. The beauty of this sector is that it offers jobs at the very beginning of the ladder with very few skills. The former CEO of One&Only globally started as a waiter. The Executive Chairman of the Hilton group started as a janitor, and today he heads the world’s largest hospitality group.

This says that these people are exceptional, but also that this industry gives you the opportunity for career advancement right from the very step of that ladder with very few skills required. That is why, for us, it is very important for unemployment.

The industry, globally, is outperforming worldwide economic growth, where some sectors are falling and some are above the global growth average, so they are lifting the global average. Tourism is above and will continue to grow. We are going to have a huge growth in number of travelers, simply because travel means are becoming easier. The low-cost carriers are increasing, people have the appetite to travel, and people are more explorative. The new generation believes the whole world is theirs. With all of that, the number of travelers will continue to grow and that translates into economic growth opportunities.

In the 1920s people used to come to Saudi for oil. In the 2020s, they are going to come for tourism. With that, we will serve our people first. We will unpack a beautiful destination, rich with stories, mystery, culture, and preserved and authentic experiences that will make this rich, rewarding, and very different from everything else.

This is not a normal destination. While many tourism figures and leaders will say the same about their destination, very few lands can claim they have witnessed the walks of prophecies, civilizations, monarchies, and trade convoys. Not many lands are at the center of the crossroads of three continents. Not many have been the birthplace of civilizations and languages. This is that land, and it remains holy for 1.8 billion Muslims.

However, before Islam, this was a land of so many civilizations and the walks of Prophets. Some scriptures say that this is where Eve landed, the birthplace of humankind, in Jeddah, the crescent over Mecca. There are a lot of scriptures. There are civilizations like the Nabateans. They made all their money and treasury in Petra, and they left us that treasury. They retired and enjoyed their lives in Al-Ula. That is where they stayed until they left us beautiful tombs, and a scale that is probably 10 times the scale of Petra. Each Prophet has a story in this land: Moses, Noah. Then Mohammed came, and the birth of the Arabian language, and the Islamic. This has been holy, and Mecca and Medina have been calling the Muslim world ever since.

Today, the calling to this land is expanded to all mankind. The time is now. This land has so much history, and so many sites and architecture. Even when we look at our tourism agenda, our ambition is maybe encapsulated by the 150 million visits annually. In reality, when you unpack those 150 million visits by 2030 – which is the new target – it is a testament to so many things.

Number one, it is a testament that we will continue being the fastest-growing destination in the G20. We have been, for the past two years, the second fastest-growing destination in the world, and we are not starting from a low base. We are starting with a lot of visitors that have been coming for religious and business travel, millions, but we are still managing to be the fastest growing because of these wide doors open to a large land with rich content.

The second thing is a testament to whatever we are doing is working. This is something that could not have been achieved if we did not do what is right for our people first. In any destination, if it is not offered and presented well, people will not come. Our responsibility is to always put the host before the guest, and we have been doing that very well. Our domestic tourism has grown far beyond what we expected. If we have learned anything during the pandemic, it is that any sustainable tourism must have solid domestic tourism.

Our tourism numbers are growing phenomenally even post-COVID. People know the country and yet still we grow every year. Domestic tourism is particularly important for Saudi, not necessarily to all other countries the same. The Saudis are the biggest spender tourists in the world. All my friends in the tourism industry want a share of Saudi tourists, and I am saying I am going to retain the biggest share if I can, because they are the biggest spenders, and I want them to spend here.

We are bringing the wonders of the world back home, but before we do, we wanted to bring the lifestyle offering, because we never had that. The transformation that you see on a cultural level brought back the cinemas, dance, music, culture, all of it that was offered away, and that fueled the growth of domestic tourism.

Now we have started opening new destinations, which are going to be global wonders, to fuel domestic first. While we do that, we need to also stay authentic. When I say authentic, this is good for both domestic and international travelers. When we met tourism leaders before we launched our strategy, they all told us to be careful and to stay authentic: you will be excited to build and do things, and then you become like everybody else, stay authentic! That means remaining historically true to your country, unique in your designs to Saudi, and local in that place, local in the clothing, in the way you serve things, in the presentation, in folklore. When I go to Asir or Al Ahsa I look at different products, different music, different food, and that is what people want.

If we do all of what I have said right, we will achieve the 150 million visits and then finally build the future destinations that will become global wonders, I hope, all on this land. When we developed AlUla, the Red Sea, and all other destinations, we came with a lot of money. No country in the world is investing as much as we are investing in tourism, and we have a white canvas. With money and a white canvas, you can do a lot.

But with a giga project comes giga responsibilities. Are we doing it right? Are we true to our people, our culture, our wildlife, our marine life, and our nature? Are we building things sustainably? This is the true test for our development. Many people talk about sustainable tourism, but very few actually do something about it, not because they are not serious or have no real intention. It is just very difficult. it comes at a very high cost.

There are two types of costs for this: financial and effort. Imagine if I wanted to do something about sustainability for mobility or sustainability for buildings and I wanted to do these white ceilings to reflect the sustainability of rooftops that Mike Bloomberg launched. I would need to get the municipality involved, the manufacturers, hotels, workers, and so on. There is a lot of alignment just to make the rooftops sustainable. Imagine if I wanted to force the hotels to recycle the food and not throw it away. To do that, how many stakeholders do I need to align? It is not the hotel alone. The hotel alone will want to do it, but the hotel will tell you if the foundations do not allow me and the health authority says you must throw it because of poisoning or whatever, then I cannot get it right.

You ask them for electricity, they say if the grid is not clean energy, then I cannot. In our case, we are designing so we can get that integration, and we have the money to make the bet, and we believe that, while it is coming at a very high cost, we will be rewarded, and we will be rewarded by the most precious and impactful travelers of the world: the impact of voice and the impact of money.

We would not have achieved what we have without partners. This industry is simply integrated throughout the value chain. If the partners do not believe in the destination, they do not send people to come and see the products and the experiences, they will not support it, list it, or sell it. Our growth is a testament that we have been engaged with a lot of partners. Many have been joining our journey, but many more are yet to join.

Recognizing American tourists as coveted for their extended stays and higher spending in comparison to travelers from other regions, especially with the US poised to contribute substantially to global tourism revenue projected at $198 billion by 2025, what strategies do you consider pivotal in attracting American visitors? How is the Saudi Tourism Authority actively implementing these strategies, specifically in enhancing connectivity, to allure and cater to American tourists?

American tourists are extremely important for Saudi Arabia as they are high spenders. Building the brand destination is important to win American companies. In addition, many such companies have global reach beyond the US. The American market is very critical for us and we are paying special attention to building the right awareness, perception, and connectivity. Perception is important. Many people do not know Saudi for what it is, they know what they have heard about it from prime media. Mainstream media, naturally, reports on tensions, shifts of power, and human rights. They will not tell you in prime media they have the nicest hotel unless you go into tourism.

The Saudi tourism and destination story had not been told until we started our work and in the past four years, we have managed to improve awareness significantly, meaning growth in travel. Such growth is signaling the right demand surge for airlines to start operating. with airlines, you have indirect operation and direct operation. Post-COVID, many companies have not recovered from the pandemic, so do not want to open new routes directly, but leverage routes to where they think growth is happening.

We are witnessing this across the board. Airlines that are bringing people here from the US are expanding. All the regional players now connect from the US to Saudi. The Western European markets as well, like Lufthansa, and British Airways, all of them connect. We have direct flights on Saudi and we are increasing the flights. We expect US airlines to also start connecting to leverage this growing demand.

Saudi Arabia has an unmatched offering of cultural treasures, which include six UNESCO World Heritage Sites like AlUla, Diriyah, and Historic Jeddah. However, there is still a significant void at the international level about Saudi’s cultural richness and natural beauty. What are some examples of lesser-known locations, landmarks, or cultural events that you think would blow the mind of an experience-seeking US traveler? 

We now have seven UNESCO World Heritage sites as one was added recently. Every country has the right to add one each year. We have asked UNESCO for permission to add at least two every year as we have 10,000 archaeological sites that are translating into UNESCO heritage sites. You cannot equate the scale of this land with another country. Our strategy is all about being the true home of Arabia. While many countries may be successful, without being necessarily authentic, you can be a Vegas of Arabia. But that is not our choice.

Our choice is to remain true to what our cultural roots have uniquely to offer, while still building for a culture that interacts with the world’s modern cultures today. That is why you will see the things that will shock them. The largest mud city in the world like Diriyah, seeing the Montage from the West Coast of the US, seeing Baccarat from the center of New York, seeing Four Seasons, and all the American brands, following the urban mud code, is creating a spectacular blend of the next generation of hospitality brought to you in a very local cultural setting. Diriyah is not just the birthplace of the Saudi monarchy, it is also done in a way that will make it probably the most walkable and culturally rich destination for cultural communities and nomads.

Meanwhile, the Red Sea is unpacking itself in a way that is second to none and at a faster pace than certain other projects. Six Senses opened ahead of its time. National Geographic will tell you it is the best place for diving in the world, and it still has 300 virgin islands. It is building a beautiful ability to disconnect from the world and immerse naturally.

Riyadh is creating a FOMO (fear of missing out) with its happening calendar of events. Our capital arguably has a greater number of events per week than the busiest city in the world, Las Vegas. Last year, we did 9,200 events. This year, we are completing 11,500 events. This is the most happening when it comes to events in the world, and that is a type of FOMO. Another type of FOMO is what we are doing in Neom. It is the FOMO of tomorrow. For the imaginative, the dreamers, the scientists, and the innovators, Neom is the greatest FOMO of all.

In contrast, you have the beautiful JOMOs (joy of missing out), and that is the Red Sea and AlUla. This is the joy of missing out and disconnecting, and connecting with culture, nature, and history. With those, we have a beautiful balance, and in between, you have so many cultural offerings in terms of villages. We have two villages that have been rated the Best Tourism Villages in the world by the UNWTO. So, we have UNESCO heritage sites, and the world’s best tourism villages. We won two years in a row and will continue to provide second-to-none villages.

The wildlife of Saudi is not something that was ever talked about. With our rewilding initiatives, we have committed to 21 species. We are going to bring back this land to what it was 100 years ago, so reinstate wildlife in nature. We have made the commitment to preserve 30% of Saudi Arabia’s total land for reserves. That’s extremely bold; 21 species. This is no longer talk, it is an absolute walk. One of them was the Arabian leopard. We gave birth to a couple of new leopards in AlUla, and we added the Arabian leopard to the global five cats of the world. We have a yearly walk around it.

Following that is the oryx which is an antelope, and the ibex which is a wild goat. But there is much wildlife that is coming. People come for camel experiences, just like they go to see gorillas in Africa. You ride the camel, you feed it, and you take a picture of the camel. We do things with camels that no one else does. Our races are by far the largest and our camel beauty contests are spectacular. But that is just one animal. Marine life is big. Turtles nest along the Red Sea coastline. In terms of wildlife diversity, it is going to be a wonder as well.

Finally, the greatest wonder of this place, and it is hard for me to claim it, is the real kind-hearted, generous people of Saudi Arabia; people here are genuinely generous. It comes because of our teaching. This land of Arabia was always the trade route. Bedouins used to be guided as they traveled by fire at night. Why? I can go and get food as I move to my second point. The people of this land used to take pride in keeping their fire lit and serving more people passing by. I would take pride in how much I have served and supported.

These people are strangers, they will leave me tomorrow, and I will not get anything back, so you give without exchange in return. That is the ultimate giving. That was the culture of competition between people. The city with no doors is a city you will only find in Saudi. The concept of open doors is tangible and intangible.

Brand Saudi has undergone a remarkable transformation of late, leveraging the realms of sports and entertainment to propel its evolution. The emergence of Riyadh Season, global artist performances, entertainment festivals, and the hosting of international events has been pivotal in this evolution. How has the Saudi Tourism Authority strategically influenced and contributed to this significant shift, and in what ways has the fusion of sports and entertainment elevated the destination’s profile, enabling it to resonate with a broader and more diverse audience?

Vision 2030 looked at the human-led sectors, all the ones you list are lifestyle sectors: sports, culture, or music. There are priorities for the vision itself because they offer opportunities for our people first before tourism. But they are also creating excellent content and that becomes a magnet for businesses and travelers. What you see in music or sports has lured the giants of US business before the US travelers. It created content that appeals to families, youth, and children, across the board.

We see what the families want and we map it with the opportunities we are creating for the people here in these sectors. Our job is to get into lifestyle travel. In lifestyle travel, you think of different passions and passion groups, and you speak to them: people who have a passion for music were flocking in hundreds of thousands to the Middle East. How much of that is from the US? The lion’s share is from the US when it comes to Western Europe and America thanks to the American stars that were in that. The same with the Jeddah Film Festival: recent Oscar winners were at the film festival. Also, a long list of American celebrities came. Our job is to take these celebrities to showcase the destination and get them to tell the stories to their followers. We are facilitating that.

In sport tourism, it is the same. We have the celebrities of the world, whether they are playing here, or those that are not like Lionel Messi, we engage them. The most visited site in France – which is the most popular tourist destination in the world – is The Louvre. The second most visited country is Spain and its most visited site is Real Madrid’s stadium. If the number one site is a soccer stadium, sports tourism is going to be potentially big. Our job is to translate their engagement into products and experiences that tourists can enjoy. We started with the exhibition of Cristiano Ronaldo but are doing a lot with all the Saudi clubs.

As head of the tourism authority, you have played an instrumental role in developing the Visit Saudi brand, cultivating the destination, and making it more accessible to the world. Tourism in Saudi is on the path to success in fulfilling its part of Vision 2030. But what comes after this? And where do you see yourself after that time?

There are very few places where you can feel privileged at a transition. Transition gives you the opportunity and exposure like no other. If you go to a mature destination, it is one thing. If you go to an old destination, it is one thing. But to see both and witness the transition is a true privilege. The transformation and the transition we are going through is at a pace and scale second to none, and it is working.

This country is in a steep transition because the transformation we are going through is not linked or dependent on our resources. It is dependent on our dreams and imagination, linked to our people, starting from our leader, that allowed us to dream and enabled us to achieve. I see myself continuing to dream and achieving a transformation like no other.

Do you have a final message for the readers of USA Today?

Explore more and share more! The world wants to hear about Saudi more from you, than from me.