Saudi Arabia’s Vision 2030 Is Too Expensive For Tourists – And Everyone Knows It

Are Saudi Arabia's new tourism offerings too pricey? That's the sentiment on the ground at the Future Hospitality Summit (FHS) in Riyadh this week.

Between now and the end of the decade, 320,000 new hotel rooms are expected to open in Saudi Arabia. According to Knight Frank, 82% of those new rooms are in the luxury and upscale segments. And 66% of Saudi's current 149,400 rooms are also upscale and luxury.

Saudi eventually wants 70 million international tourists to come visit. But it was only in 2019 that it opened for tourism at all. Saudi had 27 million international visitors in 2023 - many of them came for religious travel rather than stays at newly-developed leisure hubs.

Radisson's regional vice president of development, Elie Milky said on a panel at the summit that "ego projects" by private investors are becoming less prevalent.

"Emotional and ego investments are going away. We need to be in line with the tourism strategy but we need to help it in not only promoting five-star categories," Milky said. "It’s too risky for some investors to go into a place with a five-star hotel. It might be a nice