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Wealthy Saudi families are enjoying various kinds of entertainment in a man-made oasis built on sand dunes and spending huge sums of money in a difficult phase of the epidemic’s spread which is preventing overseas travel. which can contribute to the revival of domestic tourism.
The Corona virus has hampered Saudi plans to revive tourism and entertainment, two new sectors that are a cornerstone of the plan to diversify the oil-dependent economy, but domestic tourism has become an important factor in bringing these to life. two sectors.
In light of the Saudis’ inability to visit their favorite cities and resorts in several countries due to restrictions imposed to contain the Covid-19 epidemic, Riyadh Oasis, an upscale desert haven with its luxurious restaurants and its luxurious tents, seeks to attract the Saudis. affordable personalities and families to spend their vacations there.
The site, billed as a “five-star winter haven,” is the government’s latest attempt to woo Saudis accustomed to spending billions of dollars overseas.
“Water, palm trees, sand. An oasis has it all,” said a Saudi tour guide, welcoming guests with their luxury cars.
The oasis opened in mid-January for a three-month season.
“The Oasis provides services to wealthy Saudis and targets those who have not been able to make it to the United States or Europe on their annual trips,” a Riyadh-based banker told AFP.
Travel ban
For decades, the citizens of Saudi Arabia and other Gulf states have been considered among the top spenders in Europe, largely because of the lack of entertainment options in their countries.
Saudi Arabia’s annual foreign tourism market is expected to reach more than $ 43 billion by 2025, according to the Dublin-based Research and Markets Group, knowing that around $ 18.7 billion has been spent on overseas tourism. in 2019, according to a central bank report. Saudi.
The government, which is fighting the economic slowdown caused by the epidemic, is seeking to capture a large part of this revenue.
Saudi Arabia recently announced an extension of the foreign travel ban for its citizens from March 31 to May 17.
The move, which the government said was caused by delays in the arrival of coronavirus vaccines, fueled speculation that the travel ban was also aimed at supporting the economy by increasing domestic spending.
Official data in recent months has shown a significant increase in domestic tourism and hotel bookings, but it may not be long.
A poll conducted by Al-Musafer travel agency this month showed that more than 80% of Saudis plan to travel abroad within six months of lifting travel restrictions.
Despite this, Saudi Arabia, the world’s largest exporter of crude oil, is sticking to a long-term strategy to boost domestic tourism.
In addition to the music festivals and sporting events that have started to be held in several locations across the Kingdom in recent years, hundreds of cinemas are planned after the decades-long ban on cinema was lifted in 2018.
Don’t target everyone
The kingdom is also building a “Walt Disney” theme park called Qiddiya, and a Maldivian-style luxury resort along the Red Sea, both of which are worth hundreds of billions of dollars.
“These developments should encourage more domestic spending,” said a 2019 report from global consulting firm McKinsey.
According to the report, more than 50% of Saudi spending on entertainment and entertainment is currently “outside the kingdom”.
However, the exorbitant cost of entertainment offers angered some groups in society, especially after value-added tax tripled last year, which affected family incomes.
The daily cost of renting a tent in Al Waha is over 13,000 riyals (approximately $ 3,466).
“The cost of these tents is equivalent to about a month’s salary,” a Saudi journalist told AFP, requesting anonymity. “There’s a joke I’ve heard that serves a bunch of people who don’t use toilet paper unless it’s silk. They’re really targeting the wealthy, that is, say the 1 percent, “he continues.
Adel Al-Rajab, CEO of Seven Experience, the company behind the Oasis project, admits that it “does not target everyone”. “You can’t expect everyone to talk about five or six star hotels,” he says.
In 2019, the head of the General Entertainment Authority, Turki Al-Sheikh, came under fire after suggesting that financially troubled Saudis pay credit cards to cover the costs of entertainment activities.
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