Saudi Arabia reveals new plans to develop budget tourism

Skift Take

The new report lists almost 250 hospitality and tourism projects, and many of them are not luxury.

Josh Corder

Authorities divided the 1,800-kilometer Red Sea coast into three areas: the northern part for luxury reasons; culture and entertainment center at various prices; and the south for mid-range and budget choices.

However, most attention has been paid to luxury megaprojects in the north – no large-scale investments have been announced yet in the center and south.

A new report by the Ministry of Investment and the Saudi Red Sea Authority (SRSA) reveals new details on the development of tourism for mid-range and budget stays.

There are almost 250 hospitality and tourism projects on the list – most of the new projects are in secondary cities, not Riyadh or Jeddah, and many are not luxury. You can access them here.

Below we describe in detail some of the most interesting ones.

Peninsula

Saudi Arabia wants to build a $293 million development in the coastal city of Rabigh called “The Peninsula.” The beachfront project will be approximately an hour from the holy city of Mecca and is intended for both domestic and international markets.

Affordable beach resorts

Recreation centers in Aseer are planned in the north of the country. One such project is a 60-room beach resort aimed at “upper-middle-class families” who will spend about $100 a day on the trip. The project will cost around $840,000 to build, a stark contrast to Red Sea resorts where a single property can cost millions.

Also planned in Aseer is a beach resort with 250 rooms for families. This project will cost $82.9 million to build and will be a four-star facility. Plans include a water park, beachfront cottages, a kids’ club and up to eight restaurants.

In the proposal for this resort, the government claims that Aseer will have 50% of the three-star hotels.

“The region will offer a mix of affordable assets and luxury anchor projects (50% of keys to 3-star hotels). The existing PIF, Abha Downtown, Al Souda and Habala projects will play a key role as high-end core assets and have been included in our strategy. Aseer will attract 8.6 million visits in 2030, tripling current leisure visits. The growth comes mainly from domestic recreation (+250%) and international tourism.”

Adventure hotels

In the southwestern part of the city there is Taif, where an “adventure park and eco-lodge” has been designed. A place with a zip line, tightrope walks through the treetops, paintball, horse riding, archery and a small zoo are planned here. It is a mid-scale project that will cost $6.6 million to build.

By 2030, Taif is expected to serve 4.1 million guests, up from 2.3 million in 2022.

A “low-cost” camping resort with just 60 keys is planned for Al Madinah in western Saudi Arabia. A similar glamping resort is planned in Haql, a coastal town near the luxury Neom project on the Gulf of Aqaba.