A key component of the Kingdom’s economic diversification policy, tourism is helping Saudi Arabia achieve its Vision 2030 objectives. But in fact, the real impact of tourism lies in another area: Saudis are discovering their own country. This goes beyond the much-publicized creation of jobs and attracting foreign investment.
Long delayed investigation
Religious pilgrimages have dominated Saudi Arabia’s tourism narrative for decades. The Kingdom’s tourism business has survived thanks to the millions of visitors that come to Mecca and Medina each year. However, there were enormous, unspoiled landscapes behind the sacred sites—places that even many Saudis had only heard about in textbooks.
This condition is being changed by Vision 2030. The government is actively working to create tourist attractions through both internal and external initiatives. Saudis are urged to visit the Red Sea’s azure waves or the old Nabataean remains at Al-Ula.
“Our country is endowed with an incredibly rich culture and diverse natural landscapes. We are now providing Saudis and the rest of the globe with an opportunity to appreciate the history and beauty that have molded who we are”, stated Tourism Minister Ahmad Al-Khatib. The message is unambiguous: Saudis need to see Saudi Arabia.
Educating through travel
There is more to the tourism boom than just hotel occupancy. It involves imposing a mental shift. New hospitality standards are being implemented in a nation where customer service was previously considered an afterthought. A luxury tourism project on the west coast of Saudi Arabia, the Red Sea Project is educating Saudis the art of international hospitality in addition to developing resorts. “We’re not just building resorts, we’re building a future where Saudis are at the forefront of world-class service and sustainability,” stated Red Sea Global CEO John Pagano.
However, this rapid transformation comes with challenges. The influx of foreign tourists requires a workforce with skills and knowledge that are not yet widespread in the Kingdom. Therefore, if you are in search of handyman jobs in Saudi Arabia, use Layboard sites and all roads are open before you. The pursuit of a service-oriented economy can deplete the country’s existing resources and cultural norms. In addition, the environmental impact of large-scale projects such as mining in the Red Sea cannot be ignored.
Saudis gain information and skills from interacting with foreign tourists, which will benefit the economy. The tourist industry is developing into a hub for knowledge that could transform the future of the Kingdom in areas like environmental conservation and cultural heritage preservation. However, over-commercialization and the possible extinction of traditional lifestyles are concerns associated with this learning process.
Saudi Arabian large-scale construction
Saudi Arabia is actively building ambitious tourism sites through mass construction. During this time, upscale hotels, theme parks, cruise ports, private islands, and even ski resorts are being constructed in the heart of the desert. These enormous constructions are physically altering the country’s map as they rise out of the sands.
Saudi Arabia’s transformation as a tourist destination
Saudi Arabia is beginning to change radically as a tourist destination. For example, Sindalah, an ultra-luxury 7-star private island resort, includes three luxury resorts, 38 top-notch restaurants and superyacht berths. Kiddia is a futuristic city that will be dedicated to cyber sports and gaming, while Troena is a ski resort that is built high in the desert. Other projects, such as the Red Sea, include a complex of 50 luxury resorts on an archipelago with 22 islands.
The function of well-known hotel brands
Leading international hotel chains are aggressively attempting to establish a presence in Saudi Arabia. Specifically, hotel design and construction is done by industry titans like Ritz-Carlton, Four Seasons, St. Regis, Fairmont, Marriott, Hilton, Hyatt, and InterContinental. They aspire to lead the travel industry, which is now expanding at the fastest rate in the world. You have a strong chance of finding employment here if you work in the industry.
The importance of NEOM initiatives
Numerous noteworthy projects are included in the $500 billion NEOM mega-region. As part of the Vision 2030 project, this area in northwest Saudi Arabia is being developed from the bottom up. Situated on the Red Sea and Gulf of Aqaba, NEOM has an area of roughly 10,200 square miles, which is similar to whole nations. The objective of NEOM is to develop into a center for innovation, resorts, and future cities.
Tourism Goals in Vision 2030
Vision 2030 is Saudi Arabia’s strategic plan to diversify its economy away from oil dependence. One of the main goals of the program is to transform the country into a global tourism destination. When Vision 2030 was first announced in 2016, Saudi Arabia’s plans seemed fantastic: to attract 100 million international and domestic tourists annually and increase tourism’s contribution to GDP from 3% to 10%. All of these ambitious goals are to be achieved within 14 years, which requires significant changes.
Quick speed of change
The rate of change since the nation’s 2019 opening to foreign visitors has been astounding. Saudi Arabia has made it considerably simpler for nationals of 49 countries to enter the kingdom by introducing e-visas and visas on arrival. More lenient guidelines for female tourists have also been implemented at the same time. The World Tourism Council (WTTC) reports that, excluding foreign capital solicited, Saudi Arabia has already invested 800 billion dollars in its infrastructure, demonstrating the rapidity of tourism development.
Hazards and difficulties
However, there are risks associated with such ambitious objectives. First, even for a nation with substantial financial reserves, executing numerous megaprojects at once carries a financial risk. Despite being relatively small, Saudi Arabia’s government debt is increasing quickly; in 2023, it accounted for 23.8% of GDP. Nonetheless, compared to other nations like the US (133%) and the UK (98%), this is still much lower.
The oversaturation of the hotel business poses a significant risk as well. In the event that supply cannot keep up with demand, the nation’s massive hotel room construction boom could result in reduced rates. Additionally, analysts caution that the luxury market may be eroding as a result of the fiercely competitive market.
Attracting a new generation of tourists
Saudi Arabia is betting on a new generation of travelers, particularly Gen Z and millennials, who are looking for new and unusual holiday destinations. Younger tourists are increasingly looking for environmentally sustainable destinations and are also interested in experiencing the cultural diversity of the places they visit. Data shows that around 90% of young Chinese travelers and 70% of Gen Z tourists from the UK, Australia and India are keen to explore new places, making Saudi Arabia a promising destination for them.
Global Competition for Tourists
International competition for tourists is becoming increasingly intense. Saudi Arabia is actively positioning itself as a new luxury tourism market, which could draw travelers away from more traditional destinations such as Europe or the United States. In 2023, the Middle East was the fastest-growing tourism region in the world, with international tourist arrivals increasing by 23% compared to pre-pandemic levels. This is significantly higher than the global average, indicating growing interest in the region.
