Saudi Arabia aims at 25% of leisure travellers from India by 2030

Saudi Arabia, under its Vision 2030 program, aims to attract 7.5 million Indian visitors by 2030, shifting its focus from religious tourism to affluent leisure travelers. With a goal of drawing 150 million tourists annually and contributing 10% to GDP, the kingdom is enhancing flight connectivity with India, adding new routes, and welcoming airline expansions. However, high-priced leisure packages and limited premium services pose challenges. By addressing these issues, Saudi Arabia seeks to establish itself as a global tourism hub and strengthen ties with India.

Saudi Arabia is making a bold push to transform its tourism landscape under the ambitious Vision 2030 program. Aiming to attract over 7.5 million Indian visitors by 2030, the kingdom is shifting its focus from solely religious tourism to capturing the attention of high-spending leisure travelers. This target represents a threefold increase from the number of Indian visitors recorded last year, signaling Saudi Arabia's determination to position itself as a global tourism hub.

A Global Vision for Tourism Expansion

As part of its overarching strategy, Saudi Arabia plans to welcome 150 million tourists annually, contributing 10% to its gross domestic product (GDP). Traditionally, Indian visitors have traveled to Saudi Arabia for religious pilgrimages or work-related purposes. However, the country is now actively courting affluent leisure tourists from India, a move designed to diversify its visitor base.

According to a former advisor to Saudi Airlines and a past executive of IndiGo, the kingdom aims to boost leisure trips from India to account for 25-30% of total arrivals, equating to approximately 2 million visitors. This shift presents an opportunity to expand flight frequencies and capacities between the two nations.

Growing Connectivity Between India and Saudi Arabia

Currently, direct flights connect Saudi Arabia to major Indian cities such as Delhi, Lucknow, Mumbai, Ahmedabad, Bengaluru, Hyderabad, Cochin, and Kozhikode. However, studies by airlines suggest that additional markets, including Kolkata, Chennai, Kanpur, Ahmedabad, and Jaipur, hold significant potential.

Indian carriers like Air India, Air India Express, IndiGo, SpiceJet, and Akasa have already ramped up services to Saudi Arabia. With 236 weekly flights to Saudi cities like Jeddah, Riyadh, Medina, and Dammam, Indian airlines are nearing the limits of the bilateral air service agreement between the two countries.

In contrast, Saudi carriers currently operate 62 flights per week, with low-cost airlines contributing an additional 34 weekly flights. This leaves considerable room for Saudi operators to expand their capacity. New players, such as Riyadh Airline, are exploring tie-ups to enter the Indian market, with potential services expected to launch by the end of the year.

Opportunities and Challenges in the Leisure Market

Under the bilateral air agreement, both countries can request additional capacity of up to 20% if they utilize at least 80% of the agreed seat allocation. However, experts note that capturing the leisure tourism market will require deploying more wide-bodied aircraft to offer premium services. Currently, only Air India and Saudi Airlines operate business and first-class flights, while the market remains dominated by low-cost carriers (LCCs).

Another challenge lies in the cost of Saudi Arabia’s leisure packages, which are reportedly nearly double the price of similar offerings in Southeast Asia. This pricing strategy may deter middle-class tourists, who form a substantial segment of India's outbound travel market.

The Road Ahead

Saudi Arabia’s efforts to attract Indian travelers are already bearing fruit, with growing connectivity and the promise of new airline entrants. By addressing gaps in premium services and price competitiveness, the kingdom could position itself as a premier destination for leisure tourism. With Vision 2030 as the guiding framework, Saudi Arabia is poised to redefine its tourism identity and strengthen its ties with India, one of the world's fastest-growing outbound travel markets.