In Saudi Arabia incentives for airlines: new routes are born
A large-scale process of increasing tourism is underway in Saudi Arabia. The ultimate goal seems to be to [...]
Saudi Arabia
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A large-scale process of increasing tourism is underway in Saudi Arabia. The ultimate goal seems to be to greatly increase arrival statistics. This is possible by pushing tourists to other destinations, which are decidedly less well-known and have less media appeal. One number stands out among the documents of such planning: by 2030, an attempt will be made to reach 100 million tourists per year. The whole territory will have to be enticing. To do this one needs the great help of the major airlines, to which real incentives are offered. Financial aid in exchange for new routes, this is in a nutshell the summary of the move implemented by theSaudi Arabia. Tourists will thus find themselves glimpsing on the various reference sites almost unprecedented routes that can connect the world's major cities to those areas that have not yet exploded in the media. Come to think of it, this may be the last chance to discover these areas without having to share them with a huge crush. Mass tourism will come, better to take advantage of it now.
Source: Pixabay
Incentives for airlines
The government has spoken clearly and economic incentives are already a reality. It is all part of theAir Connectivity Program. Initiated discussions with a number of airlines that are very active in the territory, although any carrier is welcome in this discussion. This was emphasized by Tourism Minister Ahmed Al Khateeb, who explained that the planned support is not precluded.
An agreement has already been signed with the national airline Saudia, which will connect both Zurich and Barcelona. "The main purpose," the minister explained, "is to create direct flights to our main target markets. Our program will go to compensate the air carriers, so we will cover their losses, due to direct flights to these very important hubs for us."
How much does this aid consist of? We know for sure that the process has already been started, but it was decided not to go into details. The investment will come directly from the government, but it is not known what economic impact it will have. The Minister of Tourism explained how there will be negotiations with individual carriers. Thus, there is no fixed figure for all. However, all this will not remain a mystery: specific figures on this momentous operation should be available next year. Let us wait until 2023 for the figures and to see if this maneuver will have paid off.
Source: Pixabay
The future of Saudi Arabia
It is only since 2019 that Saudi Arabia has started offering tourist visas. The process of land transformation is recent, but it is accelerating year by year. Incentives to airlines are a very important and necessary step. Indeed, a forward-looking look is being asked of carriers, offering them economic compensation for the risk they have taken.
He explained it well Khalil Lamrabet, chief executive officer of the Air Connectivity Program: "Our intent is to incentivize airlines to fly new routes, both out of and into Saudi Arabia. We will share the financial risks of initiating this. However, these connections promise long-term profitability, fully in line with leading international practices."
To date, the forecast is to invest 147 billion dollars, so as to turn the entire country into a transportation hub. Looking not only at tourism, then, but especially at logistics. In this sense, the plan for a new airport in Riyadh is logical, as is the increase in the number of destinations and the creation of a new airline.
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