Economic Strategies Employed by the Kingdom of Saudi Arabia during the Covid-19 Period

Abstract

The suspension of Umrah tourism by the Kingdom of Saudi Arabia in the year 2020 and 2021 following the breakout of Covid-19 pandemic has caused economic problems to business owners that operate their businesses around Umrah activities. Problems such as retrenchment and closure of businesses have been reported due to significant financial risk and loss. Hence, this study is conducted to identify the role of the government i.e., Kingdom of Saudi Arabia to assist the business owners in managing the economic crisis. Specifically, the study attempts to identify the economic strategies employed by the government and the future outlooks that have been set in the future planning of Umrah tourism. A total of 13 government officers have been recruited for a semi-structured interview protocol. Interview responses were analysed following the framework by Persson-Fischer & Liu (2021)’s
government crisis management. From the analysis, it has been found that the economic strategies that the Kingdom has employed are providing financial support and making adjustment to the financial policy. On the other hand, future practices will see the Kingdom to continue with the financial support, develop cooperation between agencies, change the nature of tourism and employ digital platforms as a way to reduce cost. The study is important as it has shed lights on the strategies that the Kingdom has employed to assist the business owners and how Umrah tourism will be shaped in the future practice.