As the belt tightens

We have seen the expression, but did we consider the impact against the long game? Today two articles passed me by. The first one comes from Arab News (at https://www.arabnews.com/node/2380901/saudi-arabia) where we see ‘Saudi Arabia granted China’s Approved Destination Status’ with the added “Saudi Arabia was officially granted Approved Destination Status by China on Tuesday, allowing Chinese citizens to travel to the Kingdom on group tours, the Saudi Press Agency reported.” You might think ‘So what?’ and that is fine. Yet consider that Chinese tourists “made 155 million outbound trips, and spent a cumulative $245 billion on outbound tourism”, now this is on their global trips. Yet 5 years ago Saudi Arabia was not even a blip on the tourism radar. So, now we see the setting where it might start at a mere 10%, but this could grow a lot further. Consider that tourism suffers a $24,500,000,000 reduced income. That puts several players in hot water. Some are still recuperating from the Covid issue. Some will drown. Then we get the impact of lessened tourism all over Europe. I reckon that London will have no trouble, as does Paris. Yet several locations will feel that impact, as will some places in the US and in light of the BRICS setting, certain group travel organisations in China will undoubtedly promote Saudi Arabia as the destination to go to in 2024 and 2025. I reckon (pure speculation) that the rest of the world will lose at least 20% in the first two years and if you read up on some of the media, that is not good news. The second article comes from design boom (at https://www.designboom.com/architecture/marriott-first-w-hotel-saudi-arabia-neom-trojena-09-26-2023/). There we see ‘Marriott’s first W hotel in Saudi Arabia to debut within NEOM trojena’s futuristic ski resort’ that implies that larger players see this as the new tourist place and they want in. So consider that this happens 5 years in advance. The setting gives us the idea that this will not be a small hotel, or a simple cheap one. Saudi Arabia is setting its goals on being the hub for a lot of places and reasons and now tourism is added to their arsenal. You still think I was wrong all those years? As things go, when this gets off the ground, we see a new setting where Saudi Arabia is a possible contender for the Winter Olympics in 2040, I do not think they will have won over enough hearts for 2036, but 2040 is a decent time when the winter olympics could come to Saudi Arabia. The one place where the Winter Olympics would never have gotten to is now the place where it might end. As such how much more revenue is lost by all others? The long play is seemingly panning out perfectly for Saudi Arabia. 

Could I be wrong?
Of course I could, but consider the players vying to get in there, consider the timeline that Saudi Arabia so far has maintained and consider the losses that the US and the EU have had in the last two years alone and the losses they stand to get slapped with over the next three years. When you add it all up it implies that the EU and US will have to tighten the belt by a lot merely to get by and that is before you realise that the US will have budget problems nearly every year for the next 5 years, from that point it will continue on a non-stop trip from bad to worse year after year. We have been given the following quote for some time now “The kingdom’s Vision 2030 goals include enhancing the Saudi private sector to create a vibrant society, establishing a thriving economy via diversification, and investing in ways to position Saudi Arabia for global trade and competition.” And that is exactly what is happening in many fields including tourism. Before you listen to the other people making claims that it is a small hiccup at best. Consider your OWN position. How many holidays have you had? How many trips could you afford? For a lot of us once a year is as good as it gets and that is the same for China, as such a large group will sign up for a Saudi Trip, of that I have no doubt and in that stage as billions go towards Saudi Arabia, they will not go to either Europe or America. I reckon that the moment Saudi Arabia starts its own version of Las Vegas the tourism pain will set in in America and the revenue streams go down even furthers. And that is before you consider that there is every chance that  China will offer a group setting for the Saudi options and add 1-2 days in Dubai as well. I reckon that over the next 3 years that belt will tighten more and more and it will end plenty of businesses all over the US and Europe. I reckon that Australia will feel that pinch too. We are given “Chinese tourists spent $12.4 billion while in Australia. 677,000 visitors came to Australia for holiday purposes.” It might be a mere 10%, but that already means that Australia will miss out on well over a billion in revenue. So how many in places like Sydney will feel the pinch then? Sydney might be decently safe, but a speculated loss of 10% (if it is that small) will impact Australian lives all over the place.

Enjoy the day and consider where you were going next year for the holidays.