What Saudi Arabia’s Vision 2030 mega-investment programme in leisure and entertainment for its 30 million population will mean for the international industry was spelled out at the MENALAC Conference by Bill Ernest’s keynote speech at its opening.
Before an audience comprising some of the industry’s biggest names, Ernest, a veteran of the Walt Disney organisation and CEO of the Saudi Entertainment Ventures Company a government-funded investment corporation, outlined the kingdom’s plans.
“SEVEN has the mission to develop, invest in and operate a number of family-friendly entertainment destinations and attractions in Saudi Arabia. Let’s not forget that the majority of the population is aged under 30 and in need of entertainment. We aim to bring people to Saudi Arabia, of course, but also provide meaningful entertainment options for all the people of the kingdom.”
Commenting on the overall entertainment trends in the region, Ernest said: “Activities that immerse guests are on the rise, especially utilising advanced technology, such as the VR Park right here in Dubai. Consumers are more willing to take on challenges. Physical games and activities are on the rise. We can, and should, take advantage of this trend.”
Ernest noted that the market research company, Mintel, had recently suggested that the concept of what it means to be an adult has changed beyond recognition.
“People are adapting to lives that don’t fit the mould. Millennials are different than the previous generations, and have different expectations. As an industry we need to focus on research, development, listening to our customer needs and be responsive and proactive. And as an industry we can take advantage of this changing mindset in our customers.”
People, he said, are seeking new entertainment horizons. “We need to push the envelope to surprise and delight our growing audiences like never before. As technology becomes ubiquitous in the home so we must embrace augmented reality, VR, AI and other perhaps as-yet-undiscovered technologies in the leisure industries.”
Consumers are more mobile than ever, more willing to travel for unique entertainment options. This, he said, had manifested itself in more travel solutions, hotels, dining experiences and entertainment increases.
“Last year the global economy grew by 3.2 per cent; our sector grew by 3.9 per cent.”
The leisure sector in KSA, he said, is now dominated by Vision 2030, to move the economy away from traditional industries and promote culture and entertainment. It is part of the strategy, he said, to attract local and international investors, creating partnerships with international entertainment corporations.
“The travel and tourism sector accounted for $65bn of KSA’s total GDP in 2016, more than the automotive manufacturing, agriculture and banking sectors, and sustained 1.14 million direct, indirect and induced jobs in 2016. The sector has expanded by a massive 38.2 per cent between 1997 and 2016.”
While pilgrims to Mecca account for the majority of the eight million tourists visiting KSA annually, SEVEN is part of an ambitious plan to boost tourist numbers to 30 million buy 2030. In terms of jobs, the new Vision 2030 will ‘create exciting new roles for ambitious young Saudi nationals; we will need to provide training in new skill sets.’
In 2018 the Saudi Government announcement investment plans totaling $64bn to develop its entertainment industry over the next decade. Construction of the first opera house is under way in Riyadh, he said.
“Things are happening fast and SEVEN is proudly a driving force of KSA’s newest sector.” It was the first company in the country to obtain a cinema licence and has launched cinema venues in partnership with AMC Group. “This year alone we plan to open seven more cinemas across the kingdom with a schedule of 50 by 2022.”
SEVEN is progressing work on the kingdom’s first family-friendly entertainment destination in Riyadh, covering 100,000sq.m, it will be a one-stop entertainment hub for the entire family; the complex featuring a cinema, AR activities, green open areas equipped for sports and aquatic activities, entertainment and live shows and dining venues.
“The Riyadh development is the first of many such entertainment destinations SEVEN will be creating right across the kingdom, from the Red Sea beach resorts to the shores of the Gulf. Our owners, the Private Investment Fund, expect the company’s projects to serve more than 50m visitors, provide more than 22,000 direct jobs and contribute to the GDP by around SAR8bn by 2030.”
He said that the company planned to "facilitate the presence of both international and local brands and in doing so, become the national entertainment champion."
Ernest ended: “I hope that you will take the time to find out more about SEVEN and how we might all work together for the mutual benefit of all, to create a bright, new entertaining future for Saudi Arabia.”
Pictured: Bill Ernest.
