Saudi Arabia Reveals New Plans For Budget Tourism Development

The 1,800-kilometer Saudi Red Sea coast is split into three areas by authorities: the north side for luxury; the center for culture and entertainment at a variety of prices; and the south for mid-market and budget choices.

But most of the attention has been on luxury mega projects in the north – the center and south haven’t announced much large-scale development.

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

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

We detail some of the most interesting ones below.

The Peninsula

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

Affordable Beach Resorts

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

Also in Aseer is a planned 250-room beach resort for families. This project will cost $82.9 million to build and will be four-star. Plans include a waterpark, beachfront chalets, a kids club and up to eight restaurants.

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

“The region will offer a mix of affordable assets and luxury anchor projects [50% of hotel keys at 3 stars]. The existing PIF projects, Abha downtown, 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 m visits in 2030 tripling the current leisure visits. Growth mainly originates from domestic leisure [+250%] and international tourism.”

Adventure Hotels

In the southwest of the city is Taif, which has planned an “adventure park and eco-lodge.” Here, a destination with a zip wire, tree-top rope walks, paint ball, equestrian, archery and petting zoo is planned. It is a mid-scale project that will cost $6.6 million to build.

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

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