Saudi Arabia’s surging tourism boom faces setbacks as costly infrastructure gaps threaten growth, putting its ambitious 2030 vision at risk.
Saudi Arabia has set its sights on becoming a global tourism powerhouse, but the country’s infrastructure challenges could slow down its ambitious plans. Despite massive investments and government initiatives to diversify its economy away from fossil fuels, experts believe the Kingdom may struggle to fully capitalize on its tourism potential in the near future.
In an exclusive interview with Semafor, the chief executive of a leading European online travel agency highlighted the infrastructure shortcomings that could hinder Saudi Arabia’s ability to attract the desired influx of international travelers. While the nation has made significant strides in improving accessibility and promoting itself as a tourism destination, there are still major obstacles that could delay its progress.
Saudi Arabia’s Tourism Vision for 2030
Saudi Arabia has positioned tourism as a key pillar of its Vision 2030 plan, an economic diversification strategy aimed at reducing the country’s dependence on oil revenues. The Kingdom’s tourism goals are nothing short of ambitious:
- Targeting 70 million foreign visitors annually by 2030, including religious pilgrims.
- Encouraging $80 billion in private-sector tourism investment to support new attractions and infrastructure.
- Hosting major global events like the 2034 FIFA World Cup and the 2030 World Expo to boost international appeal.
In 2023, approximately 30 million tourists visited Saudi Arabia, and the country secured $3.8 billion in tourism-related investment, according to Bloomberg. While these numbers represent substantial growth, they are still far from the Kingdom’s long-term objectives.
Riyadh’s Transformation: A Gateway to Saudi Tourism
Saudi Arabia’s capital, Riyadh, is at the forefront of the nation’s tourism evolution. The city has rapidly embraced change, with the government focusing on making it a world-class tourism and business hub. Key developments include:
- The Riyadh Metro System: Aiming to alleviate traffic congestion and improve urban mobility.
- King Salman International Airport: Expected to open by 2030, with aspirations to become the world’s largest airport.
- High-profile sports and cultural events: These include e-sports tournaments, concerts, and exhibitions designed to attract visitors.
The Kingdom only began issuing non-religious tourist visas in 2019, but the process has since become more streamlined, allowing tourists to apply for visas online with ease. This shift signifies Saudi Arabia’s determination to become a tourism-friendly destination.
Saudi Arabia vs. UAE: A Competing Tourism Model
One of the biggest inspirations for Saudi Arabia’s tourism development is its neighbor, the United Arab Emirates (UAE). The UAE has successfully positioned itself as a global travel hub, thanks to its modern infrastructure, world-class hospitality, and a robust aviation sector led by Emirates and Etihad Airways.
Saudi Arabia appears to be following a similar path by:
- Launching its own global airline, Riyadh Air, to position itself as a stopover destination for European and Asian travelers.
- Marketing itself as an alternative to Dubai and Abu Dhabi, offering unique cultural and historical experiences.
- Developing world-class resorts along the Red Sea and NEOM, attracting luxury travelers.
However, while the UAE has decades of experience building a tourism ecosystem, Saudi Arabia is still in the early stages of developing the necessary infrastructure to support large-scale tourism.
Infrastructure Roadblocks: Will Saudi Arabia Overcome Them?
Despite Saudi Arabia’s determination, several infrastructure-related challenges could slow down its tourism progress:
- Limited Transport Connectivity
- While the Riyadh Metro is under construction, public transport remains underdeveloped compared to cities like Dubai.
- Intercity rail and road networks need significant upgrades to support domestic and international tourists.
- Airport Capacity and Airline Growth
- The planned King Salman International Airport aims to be the world’s largest, but its completion date is 2030.
- Riyadh Air, Saudi’s flagship airline, is still in its infancy and must compete with well-established Gulf carriers.
- Hospitality and Accommodation
- The hotel industry is expanding rapidly, but the supply of world-class accommodations is still playing catch-up with demand.
- Many high-end resorts, including those in the Red Sea Project and NEOM, are still under development.
- Cultural and Social Perceptions
- Despite relaxed social restrictions, Saudi Arabia still faces image challenges due to its human rights record.
- FIFA withdrew Visit Saudi’s sponsorship of the 2023 Women’s World Cup after backlash from players and sponsors.
These factors indicate that while Saudi Arabia has made notable progress, it must overcome significant infrastructure and perception hurdles before becoming a global tourism leader.
Retaining Domestic Tourists: A Positive Step Forward
One area where Saudi Arabia is seeing tangible success is in domestic tourism retention. Historically, many Saudis traveled to the UAE or other Gulf destinations for leisure. However, with new entertainment options, theme parks, and cultural events, more locals are choosing to vacation within the Kingdom.
The introduction of music festivals, cinemas, and sports events has played a significant role in shifting domestic travel trends. The country’s ongoing tourism projects—such as the futuristic NEOM city and the luxury Red Sea resorts—are expected to further encourage locals to explore their own backyard rather than seek entertainment abroad.
Will Saudi Arabia Meet Its Tourism Targets?
Saudi Arabia’s ambitious tourism goals align with its broader economic transformation. The country is taking bold steps to reshape its tourism landscape, and while progress is evident, infrastructure limitations remain a major bottleneck.
Key questions remain:
- Can the Kingdom accelerate airport and transport development to match its tourism vision?
- Will global perceptions change, allowing Saudi Arabia to become a preferred destination?
- Can Riyadh successfully replicate the UAE’s tourism model without facing the same challenges?
Regardless of whether Saudi Arabia reaches its full target of 70 million international tourists by 2030, its tourism sector is undeniably evolving. While infrastructure concerns persist, ongoing investments and strategic planning suggest that the Kingdom is moving in the right direction.
The Road Ahead for Saudi Tourism
Saudi Arabia has tremendous tourism potential, but infrastructure constraints could delay its rise as a global travel hotspot. With mega-projects underway, government-backed investments, and an increasingly open travel policy, the Kingdom is taking decisive steps toward its vision.
The coming years will be crucial in determining whether Saudi Arabia can transform itself into a tourism giant or if its ambitious plans will face further setbacks due to logistical and infrastructure challenges.
One thing is certain: Saudi Arabia is making headlines in the tourism industry, and its journey is just beginning.
Credit: travelandtourworld