Investing in the tourism sector in the Kingdom of Saudi Arabia is one of the most prominent aspects that deserve attention, as the Kingdom has rich and diverse tourism potential that attracts tourists from all over the world. In this context, the feasibility study comes as an essential tool for evaluating the attractiveness of tourism investments and determining the expected financial returns.
The annual number of visitors to the Kingdom of Saudi Arabia is more than 24 million, and expectations indicate continued growth in the coming years. Studies also indicate that the annual growth rate in the tourism sector in the Kingdom exceeds 7%.
In the context of tourism market analysis, the number of potential visitors, preferred travel styles and competition analysis from other destinations are extrapolated. This helps to understand the nature of the market and the extent of its interaction with the proposed tourism services.
It is also expected that the rate of return on investment in the tourism sector will reach between 10% and 20%, and this depends greatly on the quality of the project and the extent of its response to market needs and tourists’ trends.
For its part, cost estimation in the tourism sector requires determining the costs necessary to develop and market tourism projects, and this includes structural, operational and marketing costs. In addition, the expected revenues from tourism, which include accommodation, entertainment and trade revenues, must be estimated.
When it comes to financial analysis, determining the expected financial return on investment is vital. It helps to evaluate the feasibility of tourism investments and the extent of achieving the expected financial return in the long term.
In conclusion, the tourism sector in the Kingdom of Saudi Arabia is considered an important investment opportunity. The feasibility study contributes to providing a comprehensive assessment of the opportunities and challenges related to this sector, and helps in making the right investment decisions that enhance the economic and social sustainability of the Kingdom.
