Saudi Arabia reveals new plans for the development of budget tourism

Take the skift

A new report lists nearly 250 hotel and tourism projects and many are beyond luxury.

Josh Corder

The 1,800-kilometer Saudi Red Sea coast is divided by the authorities into three zones: the northern part for luxury; the culture and entertainment center at various prices; and the south for mid-market and budget options.

But most of the attention has been on luxury mega-projects in the north: the center and south have not announced much large-scale development.

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

There are almost 250 hospitality and tourism projects on the list – most of the new projects are in secondary cities rather than Riyadh or Jeddah and many are outside of luxury. You can access it here.

Below we detail some of the most interesting.

The Peninsula

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

Affordable Beach Resorts

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

A 250-room beach resort for families is also planned in Aseer. The construction of this project will cost 82.9 million dollars and will be four stars. Plans include a water park, beachfront villas, a kids’ club and up to eight restaurants.

In the proposal for this complex, the government says that Aseer will have 50% three-star hotels.

“The region will offer a mix of affordable assets and luxury anchor projects (50% of 3-star hotel keys). Existing PIF projects, Abha Centre, Al Souda and Habala will play a crucial role as high-end anchor assets and have been factored into our strategy.Aseer will attract 8.6 million visits by 2030. Growth will come mainly from domestic leisure ( +250%) and international tourism”.

Adventure hotels

South-west of the city is Taif, which has planned an “adventure park and eco-lodge”. A zip line destination, tree top rope walks, paint ball, horse riding, archery and petting zoos have been planned here. This is a medium-scale project that will cost $6.6 million.

Taif is targeting 4.1 million visitors by 2030, up from 2.3 million in 2022.

A ‘budget’ camping resort with just 60 keys is being planned in Al Madinah in western Saudi Arabia. A similar glamping resort is planned for Haql, a coastal town close to Neom’s luxurious Gulf of Aqaba project.