Saudi Arabia develops human resources

The National Transformation Programme (NTP) outlined the goal of increasing direct employment in the tourism sector in Saudi Arabia, aiming to raise the number of jobs from 830,000 to 1.2m by 2020. This would mean the proportion of nationals working in the sector rising from 27.8% in 2016 to 29.6% in the next four years.

However, these targets pose recruitment challenges, as it has not traditionally been the first choice for young Saudis seeking employment. Reversing this trend, while also ensuring that new employees are properly trained, are key tasks in safeguarding the future of the industry, and, there are well-established programmes already under way to address these issues.

Leading The Way

As the industry’s chief regulator and developer, the Saudi Commission for Tourism and National Heritage (SCTH) has been working closely with the Ministry of Labour and Social Development (MLSD) to ensure that the sector achieves its Saudiisation employment goals. These targets have been raised under Vision 2030 and NTP, as policies are implemented to tackle unemployment, which stood at approximately 12% at the start of 2017, with the rate at 31% among Saudis between the ages of 15 and 24, and 34.5% in the third quarter of 2016 for women of all ages.

In early 2017 the SCTH signed a memorandum of understanding with the MLSD to help reach the 29.6% target of national employment in tourism by 2020. This is being done through the Professional Council for Tourism and National Heritage, which is tasked with raising the overall number of Saudis in both part-time and full-time employment in the sector.

The council will also consider a range of schemes, such as creating seasonal employment opportunities, encouraging nationals to make investments in the sector, and boosting the number, scope and reach of training programmes. In addition, companies will be required to register all employees with the General Organisation for Social Insurance to verify that their employment practices are in compliance with Saudiisation goals.

In April 2017 the 10th annual Saudi Travel and Tourism Investment Market forum was held with the SCTH and Prince Faisal bin Bandar Al Saud, the governor of the Riyadh region. The forum approved the initiative of lending for tourism and hotel projects valued up to SR2.7bn ($719.8m), reinforcing the shared goal of boosting the number of sector jobs for nationals, particularly in the two holy cities.

Changing Opinions

The SCTH is attempting to reshape the preconceived notion among Saudis that tourism is as an area for expatriates only. For instance, a campaign is being rolled out in schools to promote the sector as an attractive future workplace. High school students are being given the chance to spend a day at a five-star hotel, to see first hand the many opportunities and challenges of a busy international establishment. Short training programmes are also being offered for tertiary students, along with the expansion of a highly successful scholarship programme. In cooperation with the Ministry of Education, the programme has seen Saudi students sent abroad for university-level degrees and diplomas in tourism and hotel management. Authorities increased the number of places available in this scheme after around 800 students applied for 200 places in the last intake.

Certifications

At the same time, the SCTH is helping to professionalise the sector by using its licensing powers to make sure that candidates seeking employment have the necessary qualifications. Tour guides, for example, must now undertake a five-day SCTH-certified training course before they can be registered. The SCTH also runs other short courses in the field, covering subjects that range from IT to people skills.

“In this sector, quality human resources are essential,” Meteb Al Mahoud, CEO of Amazing Tours, a registered tour operator established in 2006 in Riyadh, told OBG. Dedicated, English-speaking employees can be hard to come by. Creating steady tourism jobs will take time, but authorities are already pushing hard for change.