Private investment constitutes up to a quarter of AlUla’s total spending as the Saudi tourism destination moves ahead with development plans, a senior executive at the Royal Commission for AlUla has said.
“Out of the overall budget, probably 20 to 25 per cent is private [investment],” Phillip Jones, chief tourism officer, told The National an interview, without revealing specific figures.
“More and more of the businesses that are opening across the destination are opening on their own. They're not asking for financial support."
AlUla, a heritage site with preserved tombs and sandstone outcrops, is expected to contribute about 120 billion riyals ($32 billion) to Saudi Arabia’s economy.
The Royal Commission forecasts that the population of the area will triple to 130,000 by 2035, generating about 38,000 new jobs.
AlUla welcomed 185,000 visitors last year and is forecasting 250,000 for this year, Mr Jones said on the sidelines of the Arabian Travel Market at Dubai World Trade Centre.
“We may get to a million visitors by 2030,” he said. “We don’t want to be Petra with thousands of people … our target is a premium luxury audience and we haven't deviated from that at all.”
Almost a million tourists visited Jordan’s Nabataean city of Petra, a Unesco World Heritage Site, last year as travel demand rebounded after the pandemic.
AlUla is among a number of projects in Saudi Arabia which form part of its diversification efforts.
Others include the $500 billion Neom smart city in the north-west of the kingdom, the Red Sea Project, which includes an archipelago of 92 islands, 50 dormant volcanoes, mountain ranges and sand dunes, and Diriyah, the 300-year-old city considered to be the birthplace and capital of the first Saudi state.
The “biggest challenge” is raising awareness about the destination and ensuring the “right lift” from airline partners to transport visitors to the destination, as well as making sure there is enough room supply to keep up with the rising demand, Mr Jones said.
“That's a big issue for us [especially] during our peak season, so we're adding more hotels, building more rooms, adding more inventory to the portfolio because at the end of the day we can fill all the rooms. We just need more,” he said.
In January, AlUla Development Company, which is wholly owned by the Public Investment Fund (PIF), said it was launching operations with the aim of turning the city into a global tourism destination in Saudi Arabia.
Planned developments include more than 7,500 hotel keys, 5,000 residential units, a staff village comprising more than 1,000 units, as well as infrastructure support.
Saudi Arabia, the Arab world’s largest economy, aims to attract 100 million visitors annually by 2030.
The country plans to add 315,000 new hotel rooms with an estimated development cost of $37.8 billion by the end of the decade, according to a Knight Frank report.
The planned additions would take the total stock to about 450,000 hotel rooms, with giga-projects such as the futuristic city of Neom leading the supply pipeline, the report said.
For Saudi Arabia, which has a population of about 36 million, domestic tourism would be key to the success of its future tourism and hospitality markets, the report found.
UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
The%20specs
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Teaching in coronavirus times
UAE currency: the story behind the money in your pockets
MOUNTAINHEAD REVIEW
Starring: Ramy Youssef, Steve Carell, Jason Schwartzman
Director: Jesse Armstrong
Rating: 3.5/5
Specs
Engine: 51.5kW electric motor
Range: 400km
Power: 134bhp
Torque: 175Nm
Price: From Dh98,800
Available: Now
Emirates exiles
Will Wilson is not the first player to have attained high-class representative honours after first learning to play rugby on the playing fields of UAE.
Jonny Macdonald
Abu Dhabi-born and raised, the current Jebel Ali Dragons assistant coach was selected to play for Scotland at the Hong Kong Sevens in 2011.
Jordan Onojaife
Having started rugby by chance when the Jumeirah College team were short of players, he later won the World Under 20 Championship with England.
Devante Onojaife
Followed older brother Jordan into England age-group rugby, as well as the pro game at Northampton Saints, but recently switched allegiance to Scotland.
THE%20SWIMMERS
%3Cp%3E%3Cstrong%3EDirector%3A%20%3C%2Fstrong%3ESally%20El-Hosaini%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStars%3A%20%3C%2Fstrong%3ENathalie%20Issa%2C%20Manal%20Issa%2C%20Ahmed%20Malek%20and%20Ali%20Suliman%C2%A0%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%20%3C%2Fstrong%3E4%2F5%3C%2Fp%3E%0A
ZAYED SUSTAINABILITY PRIZE
The specs
Price, base / as tested Dh135,000
Engine 1.6L turbo
Gearbox Six speed automatic with manual and sports mode
Power 165hp @ 6,000rpm
Torque 240Nm @ 1,400rpm 0-100kph: 9.2 seconds
Top speed 420 kph (governed)
Fuel economy, combined 35.2L / 100km (est)
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
COMPANY%20PROFILE
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Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
UAE currency: the story behind the money in your pockets
How to volunteer
The UAE volunteers campaign can be reached at www.volunteers.ae , or by calling 800-VOLAE (80086523), or emailing info@volunteers.ae.
Teaching your child to save
Pre-school (three - five years)
You can’t yet talk about investing or borrowing, but introduce a “classic” money bank and start putting gifts and allowances away. When the child wants a specific toy, have them save for it and help them track their progress.
Early childhood (six - eight years)
Replace the money bank with three jars labelled ‘saving’, ‘spending’ and ‘sharing’. Have the child divide their allowance into the three jars each week and explain their choices in splitting their pocket money. A guide could be 25 per cent saving, 50 per cent spending, 25 per cent for charity and gift-giving.
Middle childhood (nine - 11 years)
Open a bank savings account and help your child establish a budget and set a savings goal. Introduce the notion of ‘paying yourself first’ by putting away savings as soon as your allowance is paid.
Young teens (12 - 14 years)
Change your child’s allowance from weekly to monthly and help them pinpoint long-range goals such as a trip, so they can start longer-term saving and find new ways to increase their saving.
Teenage (15 - 18 years)
Discuss mutual expectations about university costs and identify what they can help fund and set goals. Don’t pay for everything, so they can experience the pride of contributing.
Young adulthood (19 - 22 years)
Discuss post-graduation plans and future life goals, quantify expenses such as first apartment, work wardrobe, holidays and help them continue to save towards these goals.
* JP Morgan Private Bank
Tearful appearance
Chancellor Rachel Reeves set markets on edge as she appeared visibly distraught in parliament on Wednesday.
Legislative setbacks for the government have blown a new hole in the budgetary calculations at a time when the deficit is stubbornly large and the economy is struggling to grow.
She appeared with Keir Starmer on Thursday and the pair embraced, but he had failed to give her his backing as she cried a day earlier.
A spokesman said her upset demeanour was due to a personal matter.
The Uefa Awards winners
Uefa Men's Player of the Year: Virgil van Dijk (Liverpool)
Uefa Women's Player of the Year: Lucy Bronze (Lyon)
Best players of the 2018/19 Uefa Champions League
Goalkeeper: Alisson (Liverpool)
Defender: Virgil van Dijk (Liverpool)
Midfielder: Frenkie de Jong (Ajax)
Forward: Lionel Messi (Barcelona)
Uefa President's Award: Eric Cantona
Richard Jewell
Director: Clint Eastwood
Stars: Paul Walter Hauser, Sam Rockwell, Brandon Stanley
Two-and-a-half out of five stars
The%20specs
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Killing of Qassem Suleimani
