RIYADH, Saudi Arabia (AP) -- Saudi Arabia on Monday set up a tourism organization to encourage Saudis to spend holidays at home and to attract foreigners to visit the desert kingdom, the Saudi Press Agency reported.

The Higher Organization for Tourism is part of the kingdom's strategy of diversifying its income, 70 percent of which comes from oil sales. Like many other oil producers, Saudi Arabia, the world's largest, also has been hit hard the past few years by slumping oil prices.Saudis spend more than $16 billion on vacations abroad annually, according to unofficial figures.

The kingdom is not a major tourist destination due to its almost year-round severe hot weather and a deeply conservative society where women must be covered from head to toe. Alcohol, gambling and movies are forbidden.

The Saudi Press Agency said that the Higher Organization for Tourism will be headed by Defense Minister Prince Sultan and will report to King Fahd.

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Over the past few years, the private sector has spent more than $6.6 billion to set up tourism companies and prepare tour packages that include visits to archaeological sites, lakes and resorts.

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