SAUDI ARABIA. The possibility of alcohol being available at specified tourist resorts and even in the country’s airports appears to be growing following a flurry of recent editorials on the subject across the Saudi and regional press.
In an article headed ‘Saudi Arabia considers duty free alcohol sale at airports’, the highly influential Arab Business today claimed that plans are under consideration to see “limited” sales of alcohol, initially for international transit passengers, in specific airports.
“It is believed that strict requirements would have to be met, and the sales only available to passengers travelling on designated routes,” the report said, citing undisclosed sources. While no decision has been finalised, a consultation process is underway with key stakeholders, Arab Business added.
Last month the Wall Street Journal reported that a beach resort in the NEOM giga project would be permitted to open as early as next year.
The resort on Sindalah island in the Red Sea is expected to offer a premium wine bar, a separate cocktail bar, and a bar for “Champagne and desserts”, the title claimed, citing documents it had been shown.
Sindalah “will ignite the Red Sea as a new destination for superyachts and attract some of the world’s most affluent and influential people,” WSJ said, quoting a planning document.
However, speaking at the World Economic Forum (WEF) in Davos, Switzerland, in May, Saudi Arabia’s Assistant Minister for Tourism poured cold water on the possibility, saying, “Saudi Arabia has been very transparent on where it stands on everything. The short answer is that we are going to continue with our current laws.
“We have been doing very well. We have been outperforming globally when it comes to tourism with what we have to offer today. There’s a lot to go around without introducing alcohol.”
“Liquor remains sensitive in society as a whole in the Kingdom of Saudi Arabia, but sentiment is clearly changing quickly, especially in the younger generations. There is no doubt in my mind that liquor in duty free is just a matter of time, and I suspect, sooner than later.”
Despite those comments, the continued drumbeats over the limited introduction of alcohol suggest the subject is high on the official agenda. Travel retail stakeholders in the country are monitoring the evolving discussion closely, knowing that the addition of wines & spirits, even on a limited basis, would spur an already booming market, one dominated by fragrances. Some are sceptical of such a change, others more optimistic of an at least partial breakthrough at some point.
The channel already received one major boost in September when the Cabinet approved the creation of duty free shops in airport arrivals zones, land borders, and seaports.
“This would certainly be very good news and to some degree, transformative – as well as in line with the broader aspirations for the aviation sector as a whole,” one experienced executive told The Moodie Davitt Report. “A limited audience (transit) is a safe and sensible way to start, with the potential to expand to full departures once it becomes an accepted principle.
“Liquor remains sensitive in society as a whole in the Kingdom of Saudi Arabia, but sentiment is clearly changing quickly, especially in the younger generations. There is no doubt in my mind that liquor in duty free is just a matter of time, and I suspect, sooner than later.”
