Riyadh - Mubasher: Saudi Arabia is showing huge potential for tourism and entertainment in the region, with its varied geography and young population, according to a recent report by Jadwa Investment.

The research firm noted that Vision 2030 emphasized economic diversification, with tourism and entertainment seen to be a vital aspect in achieving that goal.

Despite high local demand and consumer spending, the sector has not been a strong performer yet, offering sizeable growth opportunities for small and medium enterprises, foreign investments and public-private partnership projects.

Millions of religious visitors (pilgrims) from around the world visit Makkah and Madinah every year, but the sector still shows a great opportunity for development.

Although tourism and entertainment will be challenged with rising costs related to expat levies, higher commercial electricity prices, value-added tax (VAT), and the rising cost of funding, the sizeable government support to the sector is significant, the report noted.

The report also explained that as jobs in tourism are mostly labor-intensive, with high variety in skills and expertise, the sector shows a substantial opportunity in helping reach labor market goals in the Kingdom.