'Tourism is the new oil': How Saudi Arabia is targeting an influx of travellers

The kingdom now claims the title of the world’s fastest growing tourism destination

Saudi Arabia is the world's fastest growing tourism destination and there is a lot more to come said Fahd Hamidaddin, chief executive of Saudi Tourism Authority. Photo: Saudi Tourism

In September 2019, Saudi Arabia opened its doors to wide-scale tourism for the first time.

Launching its first tourist visa, the kingdom began welcoming visitors from 49 countries around the globe and it wasn't long before travellers were flocking there to explore its ancient history and discover more about a destination that had been sealed off for decades.

But the first chapter of this story was short-lived as the Covid-19 pandemic hit six months later, halting most international travel.

Despite that, tourism within the country thrived and Saudi Arabia now claims the title of the world’s fastest growing tourism destination, according to data from the UN World Tourism Organisation.

Jazan in Saudi Arabia. The Covid-19 pandemic forced domestic travellers to explore what was right on their doorstep. Photo: Shutterstock / Ajmal Thaha

Fahd Hamidaddin, chief executive of the Saudi Tourism Authority, told The National at Arabian Travel Market in Dubai: “During the pandemic, even the wealthiest — the yacht and private jet owners — had no option but to fly within Saudi. So they discovered the country by force, and now they're continuing to discover it by choice.”

And with pandemic restrictions now a thing of the past, Saudi Arabia is gearing up for its next chapter.

42,000 new hotel rooms in the pipeline

In 2022, more than 93.5 million tourists visited Saudi Arabia, 77 million of whom were domestic travellers and 16.5 million were international tourists.

Nujuma, a Ritz-Carlton Resort, is one of several new luxury hotels opening in Saudi Arabia this year. Photo: Red Sea Global

The country has committed $550 billion to tourism development across the kingdom by 2030, the largest global investment in tourism by far. And there are 42,000 new hotel rooms in the pipeline, easily the most in the GCC region, says Hamidaddin.

This initial success has led the country’s leaders to reassess the original 100 million visitor target it set as part of the Saudi Vision 2030 programme and new targets are currently being agreed upon.

Despite the rapid development, there’s still a shortage of facilities to satisfy travel demand. “The main challenges today are a shortage of airlifts, accommodation and experiences,” says Hamidaddin.

Saudi Arabia’s home-grown version of Airbnb

One company aiming to help fill that gap is Gathern, currently the country’s best performing tourism company says the Saudi Tourism chief executive.

“Gathern is the alternative Airbnb, the Saudi version. It’s a home-sharing platform that started with a few hundred listings and I think today it has exceeded 20,000 across the country,” says Hamidaddin.

Listings include all types of accommodation from villas, farms and caravans to yachts and rustic chalets. There is also a wide variety of room rates on offer, catering towards different budgets — something that seems to be missing from many of the country’s tourism megaprojects.

From Banyan Tree AlUla to Six Senses Southern Dunes (launching as the first resort at The Red Sea destination in the coming months) or the Four Seasons heading to Neom’s Sinadalah Island, luxury accommodation seems to be the focus. However, it is a trend that the country's tourism authority are aware of.

Six Senses Southern Dunes will be the first resort to open at Saudi Arabia's The Red Sea destination later this year. Photo: Foster+Partners

“It’s important that we cater for all travellers, by social income class and by travel purpose. People that travel for wellness are very different than those that travel for adventure, culture and events. And so we need to make sure that our offering is looked at holistically,” says Hamidaddin.

In Riyadh — home to the towering Kingdom Centre and historic Masmak fort — there are plenty of hotel options to choose from, ranging from budget stays to luxury boutique hotels. But even here, there’s work to be done.

“Riyadh has so many hotels, many of which are on highways. But when I think of Dubai, the best performing hotels are not the ones on Sheikh Zayed Road, people don’t want to stay on a highway. I think what we want is to ensure that travellers can come and find a place to stay, and things to do that are connected and accessible,” says Hamidaddin.

Changing perceptions of a kingdom

'I think the people are the most telling about what this country is,' said Hamidaddin. Photo: Saudi Tourism

Hamidaddin accepts there are other challenges facing Saudi Arabia’s tourism industry, including how the country is still perceived by some internationally.

“In every industry, in any market, when a new brand comes in, there are the early adopters, the followers, the laggers and there are the sceptics that will never try that brand, that will say it’s not for me, and that’s fine.”

Fahd Hamidaddin, chief executive of the Saudi Tourism Authority. Reuters / Abdel Hadi Ramahi

“The best way to address the perception of Saudi Arabia is by having travellers come see it for themselves. And that has served us the best.

“The early adopters have been blown away, not just by the offering of the place, but mostly by the people. And I think the people are the most telling about what this country is, and how different from the perceptions and preconceptions that people had.”

Tourism is Saudi Arabia's new oil

Over the coming years, Saudi Arabia will aim to entice travellers with several new destinations and developments.

In Diriyah, the 300-year-old city and birthplace of Saudi Arabia, ancient Unesco-protected sites have reopened to visitors with plans for a boulevard consisting of an opera house, fashion houses, art galleries, cafes and more.

Argentina's Lionel Messi and his wife Antonela Roccuzzo visit Diriyah, the birthplace of Saudi Arabia. Photo: Saudi Tourism Authority / AFP

On the Red Sea coast, the site of some ambitious luxury tourism projects, a new airport and the first three hotels in a pipeline of 50 will open this year, offering travellers access to a cluster of unexplored islands and inland sites.

In futuristic Neom, Sindalah Island will open early next year with the launch of three properties from Marriott, including the first Autograph Collection Hotels property in the kingdom.

In the 1920s the world came to Saudi for oil, but in the 2020s, we're expecting the people of the world to come for tourism.

Fahd Hamidaddin

In 2026, Trojena at Neom will open in the kingdom's highest mountain range. This snow-capped mountain will be the first major outdoor skiing destination in the GCC, and host the2029 Asian Winter Games. It will also offer glamping and nature-laden stays at Collective Trojena, the region's first eco-glamp site.

A slew of events, such as electronic dance music festival MDLBeast Soundstorm, the F1 Saudi Arabian Grand Prix, Riyadh Season and AlUla Skies hot-air balloon festival are also on the calendar.

MDLBEAST Soundstorm 2022 in Riyadh is one of several events on the tourism calendar. Photo: MDLBEAST Soundstorm

Each of these developments and events are part of Saudi Arabia's mission to diversify away from oil, something that simply cannot be done without tourism.

“The WTTC [the World Travel and Tourism Council] said one of every five new jobs came from tourism in the last decade, and one of every four new jobs will come from the industry in the coming five to 10 years. While other industries lose jobs to robots, these human-led sectors continue to provide and tourism sits at the forefront for us,” says Hamidaddin.

“What we're doing, we are doing for our people, for our economy, and the world is going to reward us. In the 1920s the world came to Saudi for oil, but in the 2020s, we're expecting the people of the world to come for tourism. And that's why we say that tourism is the new oil.”

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  Grand Hyatt The Red Sea is part of phase one of the mega-tourism project in Saudi Arabia. All photos: The Red Sea Development Company

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  SLS Red Sea will welcome guests to Shaura Island in early 2023.

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  Nujuma, a Ritz-Carlton Reserve, is scheduled to open in 2023. Photo: Marriott International

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  The St Regis Red Sea Resort will be located on a private island and offer travellers a Maldivian-style experience.

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  Eco-friendly mountain resort Desert Rock was the first hotel to be announced for Saudi Arabia's Red Sea Project.

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  The Red Sea Edition on the island of Shaura will be designed to reflect the best of the location's cultural and social environment.

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  Six Senses Southern Dunes will be one of the first hotels to open at the destination.

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  The first Raffles resort in the kingdom, Raffles Red Sea, promises a nature-focused stay.

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  The InterContinental Resort Red Sea will have sea-facing rooms and direct beach access.

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  Jumeirah's hotel at the Red Sea will have open-plan suites with views of the pristine shorelines.

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  Fairmont Red Sea is a luxury family-friendly hotel with a focus on wellness and nature.

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  Hyatt-owned Miraval The Red Sea will be home to the region's largest spa. Photo: Hyatt

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  Playa Hotels & Resorts has also announced it will open a luxury all-inclusive property on Saudi Arabia's Red Sea. Photo: Playa Hotels & Resorts / Facebook