The global sports tourism market size was valued at $323.4 billion in 2020, and is projected to reach $1.8 trillion by 2030. Mega sporting events such as the World Cup, the Olympics and Formula One can play a crucial role in destination branding and bolstering a nation’s tourism proposition.
Such events enable host cities or countries to demonstrate their progress on the world stage and welcome thousands of new visitors to their shores. However, the impressive impact of these mega events extends far beyond enhanced tourism figures. Infrastructure development, increased direct foreign investment and societal advancement are just a few of the many benefits that arise from sports tourism.
The Saudi Government has long acknowledged the important role of sports in achieving the Kingdom’s tourism vision to attract 100 million visits a year by 2030. Sports and entertainment will play a crucial role in the realisation of the nation’s Vision 2030 and economic diversification efforts. And, with the global sports events industry projected to grow from $285 billion in 2019 to over $300 billion by 2024, it’s easy to see why.
Saudi Arabia has already made considerable progress in welcoming mega sports events to date. In August 2022, “The Rage on the Red Sea” tournament saw boxing heavyweight world champion Oleksandr Usyk face Great Britain’s Anthony Joshua. In 2021, Jeddah hosted its first ever Formula One Grand Prix and Dakar Rally.
Other major events in recent years include the Saudi Cup – the richest horse race in the history of the sport, WrestleMania and the tennis championships. The direct economic impact of hosting such events is obvious. From F&B and accommodation to ticketing revenue. However, there are other notable advantages – sponsorship being one. Sports sponsorships enable brands to reach people far beyond their own borders.
The brand becomes intrinsically aligned with the values of a team and its fan base and the power of this bond to inspire and unite should not be underestimated. Breaking down borders and bringing people together is at the heart of sport, and this is also an important responsibility of those hosting major sporting events.
By welcoming new visitors to its shores, Saudi Arabia is able to demonstrate to the world the remarkable progress it has made in transforming into a thriving, cosmopolitan nation with a rich social and entertainment scene.
By attending sports events, spectators will have the opportunity to explore a new travel destination that may not have been on their radar previously and learn more about the Kingdom’s rich history and heritage. In this sense, mega events act as an important gateway – introducing foreign nationals to Saudi Arabia and its impressive tourism potential.
Industries such as hospitality, transportation, aviation and retail will also experience the benefits of increased visitor numbers which further supports economic diversification efforts and job creation.
A further advantage to hosting mega sport events is the positive effect that they have on locals and future generations at a grassroots level. Encouraging mass participation in sports is an important contributor to a healthy and productive population. Moreover, it enables nationals to compete on the international stage, which introduces the nation, its athletes and its culture to even more people.
Sports tourism presents a huge opportunity to further enhance Saudi Arabia’s tourism proposition. However, it is vital that all stakeholders involved understand that with this opportunity comes great responsibility, especially around delivering exceptional fan experiences.
Strategic sponsorships that align values between brands to drive innovation are key. Digitisation and superior infrastructure that enables a seamless experience between the physical and digital worlds are also incredibly important.
Sport has a unique ability to break down borders. Saudi Arabia is well poised to combine its proven ability to host world-class sporting events with its tourism proposition to provide unforgettable experiences – on and off the track.
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