The Development Effect of Tourism on Saudi Economic Diversification

Mohammed Al Yousif, A.B.D and Ahmed Al Bakr

Investment in the tourism sector is a promising solution for two essential Saudi economic problems; less diversified economy and higher rate of unemployment. To estimate the effect of the tourism sector on output, income, and employment, Leontief’s input-output analysis (I-O) of the Saudi economy is carried out. The tourism industry can have positive direct and indirect economic effects. The direct effect mostly comes from tourism activities. Other sectors of production such as services, construction, and manufacturing bring about the indirect economic effect.Increasing investment in the tourism sector as an approach to enhancing Saudi economic diversification is entirely in line with the Vision 2030 objectives.

Yousif and Al Bakr.pdf