Participants in the expanded meeting held by the Hospitality and Entertainment Committee of the Eastern Province Chamber of Commerce emphasized the support provided by relevant government agencies to the hospitality and entertainment sector to upgrade the economic facilities operating within it, They described it as a promising sector with a value of approximately 127 billion riyals, to which the local component contributes 32%, making it the second-largest sector after retail that can achieve localization goals.
Hamad bin Mohammed Al-Bu’ali, Vice Chairman of the Eastern Province Chamber of Commerce and Industry and Chairman of the Hospitality and Entertainment Committee, explained that the Kingdom’s Vision 2030 focuses on economic diversification by maximizing the roles and standing of all productive sectors, emphasizing that the hospitality and entertainment sector, given its added value to the national economy, is one of the key pillars for achieving this goal, as it is a major driving force behind the growth of the national economy due to the revenues it generates, the jobs it creates for citizens, its contribution to infrastructure development and service improvements, and its role in stimulating the economic cycle across various sectors.
He noted that the tourism sector alone achieved tangible progress in 2017, with total inbound tourism to the Kingdom reaching more than 18 million visitors, who spent a total of approximately 98 billion riyals, Furthermore, the number of recreational events during the same year rose to nearly 2,045, attracting more than 8 million visitors, while the restaurant sector achieved sales exceeding 80 billion riyals, which indicates —according to Al-Bu Ali—that the hospitality and entertainment sector, across all its segments, is heading toward a major boom in line with new government initiatives to increase opportunities for Saudi national employment.
Al-Bouali noted that such meetings will help reinforce the rising growth trajectories of the hospitality and entertainment sector in the Eastern Province and propel it toward further progress and prosperity, noting that the meeting aims to reach specific framework conclusions that will support industry leaders as well as prospective investors and encourage them to achieve a qualitative leap in performance, guided by a single principle aligned with the Kingdom’s Vision 2030, which identifies the sector as a key driver of growth within its strategy to diversify the economic base. He revealed that the Hospitality and Entertainment Committee is currently working on a series of initiatives to serve industry leaders, such as a sector-specific job fair, a quarterly roundtable to address new developments and work on responding to them, as well as a guidebook that enables industry leaders—whether prospective investors or current investors—to gain a thorough understanding of all the sector’s inputs and outputs.
During the meeting, participating entrepreneurs in the sector the challenges they face regarding labor, recruitment, Saudization rates, and municipal regulations. They emphasized the need to intensify efforts to assist startups in the sector, particularly regarding the conditions and standards applied to the sector without due consideration of their practicality, They also emphasized the importance of linking recruitment to the commercial registry, as well as the need for the relevant authorities to reconsider the calculation of the six-month transition period in the Nitaqat system. They further demanded that there be binding procedures requiring workers to remain employed for a period of no less than one full year, in addition to creating an information mechanism that enables entrepreneurs to view the entertainment projects offered by municipalities, as well as an online platform specifically for entrepreneurs in the hospitality and entertainment sector in the Eastern Province to better understand the challenges and obstacles facing the sector, which would simultaneously expand participation and facilitate the presentation of solutions.
Representatives of the Hospitality and Entertainment Committee provided a brief overview of the committee, its mission, and the goals it seeks to achieve—which align with the objectives of the Kingdom’s Vision 2030— such as developing and advancing the common interests of economic entities operating in the hospitality and entertainment sector in the Eastern Province, spreading awareness and fostering a culture of excellence through specialized workshops and lectures, as well as discussing obstacles and proposing solutions—whether through visits or by hosting government officials or others with successful track records.
